Jefferies has raised its target price on Indus Towers to ₹345 from ₹295 but maintained an ‘Underperform’ rating, citing continued concerns over the company’s subpar growth profile, despite better-than-expected Q4 earnings.
Indus Towers reported Q4FY25 revenue of ₹7,727 crore, up 7.4% YoY, while EBITDA rose 7.1% to ₹4,395 crore. Net profit declined 4% YoY to ₹1,779 crore, yet came in ahead of Jefferies’ expectations. The EBITDA margin remained nearly flat at 56.9%, compared to 57% in the previous year.
The brokerage noted that normalised revenue missed expectations, while the profit beat was largely technical. Jefferies believes that slower tenancy growth and the uncertain outlook for Vodafone Idea continue to justify lower valuation multiples, even after recent operational improvements.
The firm raised its FY26–27 earnings estimates by 3–5% but cautioned that Indus is likely to deliver only 6% EBITDA and recurring profit CAGRs over FY25–28. With a free cash flow (FCF) yield of 4% for FY26, Jefferies considers the stock expensive relative to its modest growth trajectory.
Disclaimer: The above views are those of the brokerage and not the publication. Investors are advised to consult a certified financial advisor before making any investment decisions.
