Indus Towers shares were trading with gains of up to 2% in Wednesday's session, marking the third consecutive session of gains. According to reports from CNBC TV18, the stock was trading at ₹443.40, representing a 28% gain over the past six months. Among 23 analysts tracking the company, 13 have 'Buy' ratings, four recommend 'Hold' while six have 'Sell' ratings. Citi maintains a 'Buy' rating with a price target of ₹540, while CLSA reiterates its 'High conviction outperform' rating with a price target of ₹560, implying potential upside of about 27% from current levels.
According to CNBC TV18 reports, Citi identifies the successful completion of Vodafone Idea's debt raise and reassessment of its AGR dues as key near-term catalysts that could facilitate resumption of shareholder payouts through dividends or buybacks. CLSA notes that AGR relief package and Vodafone Idea's aggressive three-year investment strategy have positive implications for Indus Towers. The brokerage also highlighted that management commentary indicates AGR dues relief for Vodafone Idea bodes well for the company, while a board decision on the reinstatement of dividends is awaited. Recent market updates confirm that the board remains committed to returning cash to shareholders, however the decision will be taken by Board post 4QFY26 results.
As reported by CNBC TV18, third quarter core revenue stood at ₹5,280 crore, up 10% YoY and 1% QoQ, though it was around 1% below estimates. Reported EBITDA declined 36% YoY and 2% QoQ to ₹4,500 crore, while EBITDA adjusted for collections of past overdues rose 13% YoY and 2% QoQ, broadly in-line with expectations. Free cash flow rose QoQ from ₹300 crore to ₹800 crore, primarily due to lower capex, taking cumulative 9MFY26 free cash flow to ₹2,600 crore. Net tenancy additions came in at 6,105 during the quarter, higher than 4,505 in Q2FY26. The latest earnings call revealed that tenancies witnessed additions from IDEA this time while tower adds are expected to remain robust over next few quarters.
According to CNBC TV18 reports, Indus Towers currently has net cash of ₹3,400 crore on its balance sheet, with lease liabilities at 121% of debt. The company's tenancy additions were better than expected, driven by higher additions from Vodafone Idea, as noted by Citi. The brokerage also highlighted that Q3 performance was largely in line with expectations, supporting their positive outlook on the stock. Recent developments show that the company's balance sheet strength enhances scope for organic and inorganic expansion, with Africa expansion remaining on track via organic (greenfield) expansion in three countries.
