HSBC has initiated coverage on Indus Towers with a reduce call and a target price of ₹310, pointing to muted growth trends amid slowing rollouts from Bharti Airtel and uncertainty over Vodafone Idea’s demand outlook.
The brokerage noted that case studies indicate a lack of pricing power in the tower leasing business, and that even in a bull case scenario, much of the optimism already appears priced in. At the target price, Indus Towers would trade at EV/EBITDA multiples of 5.4x for FY26 and 5.2x for FY27.
Key upside risks, HSBC said, would include a major capital raise by Vodafone Idea that could improve tenancy growth prospects, and lease rentals coming in higher than expected.
Disclaimer: The views and recommendations made in this article are those of HSBC. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
