Indus Towers to decide on dividend payouts by Q4FY26: MD & CEO Prachur Sah
Indus Towers says dividend decision will be taken in Q4 FY26, factoring in Vodafone Idea's financial stability after AGR relief and changes in buyback taxation
 "Indus Towers to decide on dividend payouts by Q4FY26: MD & CEO Prachur Sah")
Indus Towers will take a call on dividend distribution in the quarter ending March 2026 while taking into account financial stability for its key tenant Vodafone Idea. This follows the adjusted gross revenue (AGR) relief along with fulfilment of outstanding dues to the tower company, and changes in taxation related to buyback, the top management said in an earnings call on Tuesday.
“Recent actions taken by the government on AGR dues for one of our customers are expected to bring financial stability and aid its financial health. It would enable sustained investments in network expansion, and capacity augmentation,” managing director (MD) and chief executive officer (CEO) of Indus Towers Prachur Sah told analysts during the call for the quarter ended December 2025, without naming Vodafone Idea.
He added that there were no overdues left to be paid from Vodafone Idea to the company, and that it was business as usual based on the credit period, according to agreements with the carrier.
Uncertainty over payment of outstanding dues from Vodafone Idea had led to the tower provider deferring dividend distribution for several quarters. It last issued a dividend in May 2022 at ₹11 per share on an interim basis.
“At the time, there was less clarity in terms of what the plan was for that particular customer and their financial stability… Building on the momentum, we saw that Q3 witnessed a healthy pickup in tenancy additions, particularly from one of our large customers. This reflects a gradual improvement in network investment activity as the operating environment for the customer continues to improve,” he added.
In response to questions on resumption of dividend payouts, Sah said, “At the time of annual results at the end of Q4, I think the Board should look at performance and make a decision and the Board is committed for distribution to the shareholders, so I think the timeline remains as was committed earlier.”
“The Board is clear that they are committed to provide distribution and that discussion will happen at the Q4, and the decision will be taken,” he added.
On the impact that the recent changes in buyback taxation may have on dividend payouts, Sah said that the Board will take a call and “all the options will be put on the table,” without elaborating. In the Union Budget 2026, the government has proposed to tax buyback proceeds as capital gains for all shareholders instead of dividend income for tax purposes.
On the company’s foray into Africa, Sah said that the Indus was evaluating three countries, noting that capex investments will be debt-funded which could be raised at the level of its subsidiaries in the UAE or GIFT City, Gujarat.
“We are in the initial stages of assessing the three countries in terms of operations — how the sites are built, what kind of supplier ecosystem exists, and how we can add value by reducing costs and creating differentiation for customers,” he said.
Indus incorporated a wholly-owned subsidiary Indus Towers FZE in the UAE to expand into African markets, specifically targeting Nigeria, Uganda, and Zambia, in December last year. Last month it incorporated another wholly-owned subsidiary in GIFT City, Gujarat, as an investment holding company for its overseas operations.