Indus Towers stock hits 5-month high, surges 29% in 3 months; here's why

Indus Towers outlook: Analysts believe that healthy collections against the monthly payments has improved the liquidity position of the company and moderated the reliance on external debt.

Indus Towers share price today

 

Shares of Indus Towers hit a five-month high at ₹416.95, soaring 4 per cent on the BSE in Friday’s intra-day amid heavy volumes. The stock price of the telecom infrastructure company quoted at its highest level since July 8, 2025. In the past three months, the market price of Indus Towers has rallied 29 per cent.

 

At 01:42 PM; Indus Towers was quoting 3.5 per cent higher at ₹415.85, as against a 0.54 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped nearly three-fold; with a combined 5.58 million equity shares changing hands on the NSE and BSE.

 

 

Indus Towers overview/outlook

 

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. The company’s portfolio of 256,074 telecom towers makes it one of the largest tower infrastructure providers in the country with presence in all 22 telecom circles. Indus Towers caters to all wireless telecommunication service providers in India. 

 

On November 27, 2025, ICRA upgraded the long-term rating of Indus Towers to [ICRA] AAA (Stable) and reaffirmed the short-term rating. The rating agency revised outlook to Stable from Positive.

 

ICRA in its rationale said that the upgrade in the rating factors in the clearance of the past overdue payments by a key customer of Indus Towers and improvement in the credit profile of a few other key customers. This, along with healthy collections against the monthly payments, has improved the liquidity position of the company and moderated the reliance on external debt, even as the capex remained elevated. ICRA expects the collections to remain healthy, going forward. Further, with the renewed capex plans of some Indus customers, the tenancy base and, thus, the cash flows are likely to witness a steady improvement in the near term.

 

Meanwhile, in the previous fiscal, Bharti Airtel, one of the promoters, increased its stake in the company and became a majority shareholder due to which Indus Towers became a wholly-owned subsidiary of Bharti Airtel (51.03 per cent stake in the company as on September 30, 2025). The board of Bharti Airtel recently approved the acquisition of an additional 5 per cent stake in the company.

 

The master service agreements (MSAs) signed between telcos and tower companies have lock-ins, which provide committed revenue visibility over the lock-in period. The average committed lock-in period for the company was more than six years as on September 30, 2025, indicating healthy revenue visibility. Further, the exit penalties cover for some revenue loss on account of the tenancy exits, ICRA said. 

ALSO READ: Stock Market LIVE |  RBI MPC meeting LIVE updates 

 

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, it added.

 

Meanwhile, analysts at JM Financial Institutional Securities raised its FY26 EBITDA/PAT estimates by 2-4 per cent, incorporating strong Q2FY26 results led by recovery of remaining (disputed earlier) past dues from Vodafone Idea (VIL) in Q2FY26. Hence, analysts said their target price has increased to ₹355/share (from ₹340/share), which is based on 50 per cent probability of VIL transforming into a sustainable telco (DCF-based value of ₹475/share in this scenario) and 50 per cent probability of a duopoly market (DCF-based value of ₹235/share in this scenario).

 

The brokerage firm in the October 28, 2025 dated company update said they believe Indus’ foray into the African tower business may offer growth and diversification opportunities amidst the potential growth slowdown in the India tower business. However, African markets involve risk of currency devaluation and dividend repatriation-related challenges. Further, this foray could limit companies’ ability to pay dividends over the next few years, depending on the quantum of capex planned for it, it added.