Highlights

  • Tuas ended FY26 with S$498.8 million in cash and deposits after raising Capital for the abandoned M1 acquisition.
  • Revenue climbed to S$187.6 million while net profit after tax rose to S$26.0 million.
  • Active mobile subscribers increased to 1.458 million as Simba continued expanding in Singapore.
  • The unresolved IMDA spectrum investigation and future use of the cash balance remain major uncertainties.

Tuas Ltd (ASX:TUA) finished FY26 with a problem many companies would like to have: almost half a billion Singapore dollars sitting on the balance sheet. The complication is why it is there. Much of the cash was raised to buy rival M1, a transaction that failed to secure regulatory approval. Tuas is now growing strongly without the deal, leaving investors to ask what management will do with the unused capital.

The Failed Deal Rewrote the Balance Sheet

Tuas raised S$364.5 million through an institutional Placement and share purchase plan to help fund the proposed M1 acquisition. The transaction was terminated after regulatory approval was not obtained by the extended long-stop date. Acquisition costs of S$3.7 million were expensed. With the purchase abandoned, cash and deposits jumped to S$498.8 million at 31 July 2026 from S$80.7 million a year earlier.

The Core Mobile Business Is Still Growing

The balance-sheet question sits alongside improving operations. FY26 Revenue rose to S$187.6 million from S$151.3 million, underlying EBITDA increased to S$83.8 million and net profit after tax reached S$26.0 million. Active mobile subscribers grew to 1.458 million, while fibre broadband subscribers reached 62,000. Operating Cash Flow also increased to S$91.3 million, giving Tuas a profitable base from which to consider its next move.

Capital Allocation Has Become the New Catalyst

Management has not committed to a specific use for the surplus cash. Options could include retaining it for network investment, returning capital to shareholders or pursuing another acquisition. No Dividend was declared for FY26. The absence of a clear plan creates both optionality and risk: disciplined deployment could accelerate growth, while an expensive acquisition or prolonged idle cash balance could weaken returns on capital.

Regulatory Risk Has Not Disappeared

The M1 decision is not the only regulatory issue. Tuas disclosed an IMDA investigation concerning spectrum that Simba allegedly used without the required licence. Potential outcomes could include financial penalties or changes to licence conditions, although the size and timing of any consequence have not been disclosed. Cybersecurity compliance is another cost pressure, with the company estimating significant spending tied to critical-infrastructure obligations.

The Next Move Matters More Than the Old Deal

Tuas has emerged from the failed acquisition with stronger operating earnings, more subscribers and far more liquidity. That combination gives the board flexibility, but it also raises expectations. Investors should monitor the IMDA outcome, subscriber growth, ARPU, EBITDA margins, cybersecurity spending and any capital-management decision. The key question is no longer whether M1 will transform Tuas; it is whether Tuas can use its enlarged Balance Sheet without damaging the Economics of a business that is already improving.

Competition Keeps Pressure on Pricing

Singapore’s mobile market is mature, so subscriber growth cannot be viewed in isolation. Simba competes by offering value-focused plans, which makes network quality, customer retention and average revenue per user important alongside headline additions. Tuas upgraded more than 470 sites during FY26 to increase capacity and extend 5G coverage in high-demand areas. That Investment is necessary if the company wants to keep winning customers without being trapped in a price-only strategy. As the subscriber base expands, maintaining service quality and EBITDA margins will help show whether recent growth can remain economically attractive.