Indus Towers shares gain 3% after Nomura reiterates 'Buy'; sees 30% upside

Nomura has maintained a 'Buy' rating on Indus Towers. The brokerage has kept its target price unchanged at ₹505, implying an upside of 30 per cent from its previous close of ₹388.55.

Indus Towers shares rose nearly 3 per cent in intraday trade on Thursday, tracking a broad-based rally in the markets. The buying activity was boosted by positive sentiment after Nomura reiterated its 'Buy' rating on the stock.

 

Indus Towers shares extended their gains for a second straight session today, opening higher at ₹391.45 on the National Stock Exchange (NSE). The stock touched an intraday high of ₹398.70.

 

As of 2 PM, the counter was trading firmly in the green at 2.3 per cent northward at ₹397.65. More than 4.5 million shares of the mobile tower installation company changed hands, according to NSE data.

 

 

Thus far in 2026, Indus Towers shares have slipped 9 per cent, compared with an 8 per cent decline in the Nifty 50 index. In one year, the stock has remained flat versus 5.6 per cent fall in the benchmark Nifty index.

 

So far in 2026, Indus Towers shares have declined 9 per cent, compared with an 8 per cent drop in the Nifty 50 index. In one year, the stock has remained largely flat, while the benchmark Nifty has fallen 5.6 per cent, data showed.

 

Indus Towers share price target

 

Notably, Nomura has maintained a 'Buy' rating on Indus Towers, valuing it at 7.5x FY28F EV/Ebitda. The brokerage said that it sees value in the stock even in the unlikely scenario of losing all tenancies from Jio Platforms. The brokerage has kept its target price unchanged at ₹505, implying an upside of 30 per cent from its previous close of ₹388.55.  Analysts said that Indus Tower’s share price has corrected around 11 per cent since June versus a 3 per cent fall in the Nifty 50 index mainly due to market concerns about the upcoming renewal of large tenancies from Jio Platforms (unlisted) which were signed 10 years back. The brokerage said that the concerns over Jio's tower tenancy renewals appear overdone and that "market reaction to this event may be exaggerated".

 

The brokerage said its base case assumes no major shakeup in Jio's tenancies, given "economics may not be favourable to move into a single-tenant tower, especially in high-density urban areas where Jio typically has tenancies with Indus". Also, "moving telecom equipment from ~50k towers of Indus and also reconnecting new towers with fibre networks may be tedious and economically unviable," analysts added.

 

Even in the event of complete loss of Jio’s tenancies, Nomura estimates that FY28F Ebitda could decline by 9.2 per cent and its target price may be impacted by around ₹50 apiece. The brokerage estimates a likely maximum impact of around 7.8 per cent in FY28F Ebitda and ₹45 in target price if all the Jio tenancies are renewed with a 20 per cent discount.

 

Nomura sees 'good value' in Indus Towers

 

Nomura said that it sees "good value" in Indus Towers at the current price, given that the stock trades at 6.1x FY28F EV/Ebitda, at a 10 per cent discount to its historical average.

 

The brokerage even expects Indus Towers' dividend to increase progressively and estimates FY28F dividend yield of 6.3  per cent at the current price.

 

Bharti may increase stake

 

Nomura added that it anticipates Bharti Airtel to start buying Indus Towers’ shares since the company already has board approval to raise stake by another 4.8 per cent once the insider trading blackout is over by the end of July 2026.

 

Bharti Airtel holds a 51.26 per cent stake in Indus Towers as of March 31, 2026.

 

Further, Nomura said that any progress towards Vodafone Idea’s debt raise will be key catalysts for Indus Towers.  =========================================== 

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