Shares of Indus Towers are in focus after UBS maintained a Neutral rating on the stock with a target price of ₹495, citing a mixed quarterly performance marked by weaker-than-expected revenues but stronger profitability.
UBS said consolidated revenues declined 0.5% quarter-on-quarter, though they rose 8% year-on-year. Core rental revenues increased 0.6% QoQ and 9.5% YoY, but both metrics were around 1.5–2% below the brokerage’s estimates.
Despite softer revenues, profitability came in stronger than expected. EBITDA excluding provision reversals rose 2% QoQ and 13.5% YoY, coming in 0.5% above UBS estimates. The improvement was driven primarily by lower power and fuel expenses, according to the brokerage.
Profit after tax stood at ₹17.8 billion, which was 1.6% above UBS expectations, supported by effective cost control during the quarter.
UBS described the overall performance as mixed, with margins and earnings resilience offsetting the revenue miss.
Disclaimer: This article is based solely on brokerage commentary. The views expressed are those of UBS and do not constitute investment advice or recommendations by the publication.
