CLSA has maintained its high-conviction outperform rating on Indus Towers with a target price of ₹595, implying a potential upside of around 55% from the current market price of ₹383.
The brokerage said that Indus Towers’ Q1FY26 core revenue came in at ₹51 billion, up 10% year-on-year and 1% sequentially, broadly in line with expectations. Reported EBITDA declined 3% YoY and remained flat on a sequential basis at ₹43.9 billion. However, when adjusted for past overdue collections, the underlying EBITDA showed strong growth—up 14% YoY and 3% QoQ.
Tenancy additions during the quarter stood at 6,366, which was below estimates. However, the total tenancy base continued to grow, rising 10% YoY and 1% QoQ, signaling steady underlying expansion.
CLSA also noted that Indus’ board has deferred its dividend or buyback decision to the end of the year. This follows the recommendation from a board committee exploring strategic opportunities, including inorganic growth.
Disclaimer: The views expressed in this article are based on brokerage reports and do not constitute investment advice. Please consult your financial advisor before making any investment decisions.
