UBS has maintained its neutral rating on Indus Towers with a target price of ₹425 per share following a broadly in-line Q2FY26 performance. The company added around 4,300 towers during the quarter — compared to 2,500 in Q1FY26 and 4,000–8,000 in prior quarters (excluding Q4 when towers were acquired from Bharti). Indus ended the period with a total of 256,100 towers.
The brokerage noted that the overall tenancy ratio declined slightly quarter-on-quarter to 1.62x from 1.63x in Q1FY26 and 1.65x in Q2FY25, reflecting subdued incremental demand. However, the average rental per tower rose 1.3% sequentially to ₹67,900, while the average rental per tenant increased 1.4% to ₹41,700, indicating steady pricing discipline.
UBS said the company’s operational performance remains stable, supported by its diversified tenancy base and ongoing cost efficiencies. The brokerage added that the near-term focus will remain on improving utilisation levels and collections, while visibility on dividend reinstatement remains awaited.
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