CLSA has maintained its high conviction outperform rating on Indus Towers with a target price of ₹520 per share after the company reported strong core revenue growth in Q2FY26, ahead of estimates.
Core revenue came in at ₹52.4 billion, up 11% year-on-year and 3% sequentially, while adjusted EBITDA (excluding collections of past overdue) rose 15% year-on-year and 3% quarter-on-quarter to ₹46 billion, also above expectations. Reported EBITDA, meanwhile, was down 6% YoY but improved 5% sequentially.
The company added 4,505 tenancies during the quarter, slightly below estimates, but the overall tenancy base rose 10% YoY and 1% QoQ. CLSA noted that Indus ended the quarter with a healthy balance sheet — net cash of ₹29.6 billion — even as lease liabilities stand at 118% of total debt.
The brokerage said reinstatement of dividends by the board remains a key upcoming trigger. Trading at around 5.5x FY27 estimated EV/EBITDA, CLSA believes the stock continues to offer value given its improving earnings visibility, stable cash flows, and sector tailwinds from 5G rollouts and potential relief for Vodafone Idea.
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