CLSA on Indus Tower
CLSA has a high conviction rating on Indus Tower, setting a target price of Rs 580. In the fourth quarter, the company’s core revenue reached Rs 53 billion, reflecting a 5% year-on-year and 1% quarter-on-quarter increase. Core EBITDA, after adjusting for past overdue collections, also grew 6% year-on-year and was flat sequentially, aligning with estimates.
Indus Tower recorded 4Q net tenancy additions of 6,192 and added 4,892 towers, resulting in a total of 264,514 towers—the highest quarterly figures for FY26. For FY26, EBITDA was up 11% year-on-year, with the CEO indicating a strong growth outlook. Additionally, the AGR relief for Vodafone Idea (Vi) is expected to be beneficial for Indus. After a three-year hiatus, the board reinstated a dividend of Rs 14 for FY26. The company has net cash of Rs 49 billion on its balance sheet, with lease liabilities at 132% of its debt. CLSA retains a projected core EBITDA CAGR of 10% through FY29, asserting the valuation is compelling at 6x EV/EBITDA.
Nomura on Indus Tower
Nomura maintains a “Buy” rating and raises the target price to Rs 505. They report largely stable fourth-quarter results with robust tenancy additions. The reinstatement of dividends and potential reductions in Vi’s AGR may facilitate debt raising. However, they note a marginal sequential EBITDA decline due to higher seasonal maintenance expenses. Indus Tower currently trades at 13.3x FY28F P/E and 6.3x EV/EBITDA. Nomura posits that any advancement regarding Vi’s debt raise could be a key catalyst for Indus Towers.
UBS on Indus Tower
UBS maintains a “Neutral” rating with a target price of Rs 495, reporting soft results for Q4FY26, with the Rs 14 dividend falling below expectations. In Q4, Indus added approximately 4,900 towers compared to previous quarterly figures of 3,500, 4,300, and 2,500 in Q1, Q2, and Q3 FY26, respectively. They reported 6,200 tenancies, slightly above previous quarters. The tenancy ratio remained steady at 1.62x, identical to Q3FY26 and marginally down from 1.63x in Q4FY25.
The average rental per tower dipped 1% quarter-on-quarter to Rs 66,600, with the average rental per tenant down 0.8% to Rs 41,100, both figures coming in 2-3% lower than estimates. Capex rose sequentially to Rs 23.3 billion, with FY26 capex totaling approximately Rs 88 billion—a 28% increase year-on-year. Key updates include a final dividend of Rs 14 per share and a board-approved incorporation of a GIFT city subsidiary to serve as an investment holding company for overseas subsidiaries and manage treasury operations.
HSBC on Indus Tower
HSBC has a “Reduce” rating with a target price of Rs 345, noting underwhelming free cash flow (FCF) and dividend performance despite 28% year-on-year growth in capex. They assert that the stock has potentially overvalued expectations on tenancy additions from Vodafone Idea (Vi), with rental income likely remaining pressured due to limited pricing power. The bank highlights that slower-than-expected FCF growth could be a de-rating catalyst.
Jefferies on Indus Tower
Jefferies holds an “Underperform” rating with a target price of Rs 370. They found Q4 results in line with expectations, although they viewed the Rs 14 dividend as surprisingly low. From FY26 to FY29, Jefferies expects Indus to achieve a 3% EPS CAGR, but alongside a sub-4% dividend yield, they suggest the risk-reward balance appears unattractive. In light of the reassessment of Vodafone Idea’s AGR liabilities and dividend payout, they see limited positive triggers ahead, especially amid upcoming renewal risks.
DAM Cap on Indus Tower
DAM Capital maintains a “Neutral” stance with a target price of Rs 434, noting that financials broadly met estimates. While tower additions exceeded expectations, they were largely driven by new towers, with incremental tenancy growth of only 1,300 being subdued. Elevated maintenance capex continues to be a concern, and a flat average rental per tower has proven disappointing. DAM anticipates revenue, adjusted EBITDA, and PAT CAGRs of 8%, 6%, and 6% per annum over FY26-28, respectively, and has reduced its multiple from 7.5x to 7.0x due to higher maintenance capex and the overhang from Jio sites.
