Indus Towers Q2 Review: ICICI Securities Maintains 'Reduce', Sees 15% Downside — Check New Target Price

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ICICI Securities Report

Indus Towers Ltd.’s Q2 FY26 tenancy addition again comes equal to tower net add, indicating it is largely driven by Bharti Airtel Ltd. Vodafone Idea Ltd.’s tenancy expansion of next 20,000-25,000 is conditioned on its ability to raise debt/ equity.

It remains comfortable on stable tenancy net add for next four-five quarters on the back of its orderbook. It is planning to foray into Africa continent over next two quarters, initially in Nigeria, Uganda and Zambia (stronger operations for Airtel Africa), and leverage from strong anchor customers.

It is yet to guide on financial and operational roadmap. Capex intensity remains high at 31.2% of revenue, while it has completely reversed Vodafone Idea provision for doubtful receivables.

We tweak FY26/27E earnings per share and now expect slight slower tenancy growth. Thus, our DCF-based target price stands revised to Rs 330 (from Rs 340). Maintain Reduce.

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