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 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 following the adjusted gross revenue (AGR) relief, along with fulfilment of outstanding dues to the tower company and changes in taxation related to buybacks, top management said during 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 are expected to aid its financial health, enable sustained investments in network expansion, and capacity augmentation,” managing director and chief executive officer 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 by Vodafone Idea to the company and that it was business as usual, based on the credit period as per agreements with the carrier.

   

Uncertainty over the payment of outstanding dues from Vodafone Idea had led the tower provider to defer dividend distribution for several quarters. It last issued a dividend in May 2022 at Rs 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 in the previous quarter, 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 the 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 to 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 in Q4, and the decision will be taken,” he added.

 

On the impact that recent changes in buyback taxation may have on dividend payouts, Sah said the Board will take a call and that “all the options will be put on the table”, without elaborating. In the Union Budget 2026, the government 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 Indus was evaluating three countries, noting that capital expenditure 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.