Indus Towers rallies 6%, hits 16-month high; what's driving telecom stock?

In the past four months, Indus Towers has outperformed the market by soaring 31%, as compared to 3.7% rise in the BSE Sensex.

Indus Towers share price today

 

Share price of Indus Towers hit a 16-month high of ₹455, as they rallied 6 per cent on the BSE in Friday’s intra-day trade amid heavy volumes. 

 

The stock price of the telecom infrastructure company quoted at its highest level since September 2024. It surpassed its previous high of ₹445.75 touched on January 2, 2026.

 

In the past four months, Indus Tower has outperformed the market by soaring 31 per cent. In comparison, the BSE Sensex gained 3.7 per cent during the same period. The stock price of Indus Tower has bounced back 46 per cent from its 52-week low of ₹312.60 touched on September 3, 2025.

 

 

At 10:15 AM; Indus Towers was quoting 3 per cent higher at ₹443.25, as compared to 0.07 per cent decline in the BSE Sensex. The counter has seen huge trading volumes, with a combined 14.77 million equity shares changing hands on the NSE and BSE.

 

What's driving Indus Tower stock price

 

Vodafone Idea (Vi) on Friday confirmed that its adjusted gross revenue (AGR) dues for the period from FY 2006–07 to FY 2018–19 will remain frozen from December 31, 2025.

 

Vi said it has received a communication from the Department of Telecommunication (DoT), which provides the relief to the company in the AGR matter. Vodafone Idea will be required to pay ₹124 crore annually over the next six years, from March 2026 to March 2031.  ALSO READ | Vodafone Idea shares jump 9% after DoT communication on AGR dues relief

 

The company has to pay ₹100 crore annually over four years, from March 2032 to March 2035. The remaining AGR dues will be paid in equal annual installments over six years, from March 2036 to March 2041.

 

Indus Towers is India’s leading provider of passive telecom infrastructure and it deploys, owns and manages telecom towers and communication structures, for various mobile operators.

 

In the first half (April to September) of the financial year 2025-26 (H1FY26), it had an average revenue of ₹67,924 per macro tower per month and ₹41,714 per sharing operator per month, which is one of the highest in the industry, underpinned by significant loading, high tenancy ratio and premium locations of some of these towers.

Brokerages view on Indus Towers

 

The liquidity, cash flows and debt position of Indus Towers improved in FY 2025 owing to healthy collections from customers, along with the clearance of a sizeable chunk of past overdue by a major customer. This moderated the debt levels as well as improved the liquidity position, reflected in cash and investments of ~₹4,424 crore as on September 30, 2025, ICRA said in its rating rationale.

 

Further, the tower industry is critical for the telecom service provider industry. The demand for towers can be expected to continue in the long run as the telcos are likely to expand their network, especially for data services. Moreover, Indus has a strong promoter profile with Bharti Airtel Limited as its majority shareholder, the rating agency said.

 

Meanwhile, the government has been vocal about its intent to prevent a duopoly in telecom. Its support to Vi would enable the latter to raise debt funding and carry out network expansion capex. That’s the only hope for Vi to retain its current 2G users (1/3rd of total) as they upgrade to smartphones, according to analysts at Ambit Capital.

 

Indus Towers gained around 60-65 per cent market share of Vi’s new tower rollouts after the latter’s March 2024 fundraise. Indus Towers' existing tower footprint was constructed for Airtel, and since Vi and Airtel have similar spectrum holdings, this makes Indus best placed to benefit from VI's network expansion. Hence, the brokerage firm expects Indus to continue garnering 60-65 per cent market share of Vi’s incremental rollout.

 

Dividend resumption along with Q4FY26 results and the government’s support for Vi are the key near-term catalysts, the brokerage firm said in telecom sector update report dated December 24, 2025.  ===========================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.