Shares of Indus Towers Ltd gained 2.94% to ₹382.20 on Tuesday, October 28, even as the company reported a decline in quarterly profit. The telecom infrastructure major posted a net profit of ₹1,836.6 crore for the quarter ended September 2025 (Q2 FY26), down from ₹2,223.5 crore a year ago, though slightly higher than ₹1,736.8 crore in Q1 FY26.
Total revenue rose 9.7% year-on-year to ₹8,188.2 crore, while EBITDA declined 6% YoY to ₹4,613 crore with a margin of 56.3%. The company recorded a ₹195 crore writeback in provisions for doubtful receivables, supported by improved collections. Indus added 4,505 new tenancies during the quarter, taking its total tower base to 2,56,074. CEO Prachur Sah said the company’s expansion into Africa and focus on automation and AI will enhance long-term growth and operational efficiency.
Brokerages largely retained a positive stance on the stock despite the earnings dip:
- CLSA maintained its high conviction outperform rating with a target price of ₹520, citing strong core revenue growth of 11% YoY and steady improvement in adjusted EBITDA. It expects dividend reinstatement to be a key trigger ahead.
- UBS maintained a neutral rating with a target price of ₹425, noting a slight dip in tenancy ratio to 1.62x but consistent rental growth per tower and tenant.
- Citi reiterated its buy rating with a target price of ₹460, saying the Supreme Court’s permission to the government to review Vodafone Idea’s AGR dues could significantly improve Indus Towers’ receivable position and reduce credit risks.
At current levels, Indus Towers’ market capitalization stands at ₹97,871 crore, with a P/E ratio of 10.40 and an average daily volume of 5.71 million shares on NSE.
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