Indus Towers Ltd logo

Indus Towers Ltd

INDUSTOWER NSE

Indus Towers Limited is engaged in the business of object of, inter-alia, setting up, operating and maintaining wireless communication towers.[1]

AI Verdict: HOLD Confidence: 5%

Indus Towers trades at a reasonable PE of 15.3x with strong historical ROE of 25%, but TTM profit decline of -26% and significant promoter holding reduction of -17.7% over 3 years raise concerns. The 2.66% dividend yield provides income support, but split analyst opinion (48% buy vs 35% sell) reflects uncertainty around near-term earnings trajectory.

Key Fundamentals

MidcapTelecom InfrastructureTelecom
Market Cap
1.1L Cr
Volatility
Moderate
P/E Ratio
14.53
EBITDA
₹17,813 Cr
Return on Equity
22.32%
Debt to Equity
0.7
Book Value
₹150.28
EPS
₹24.54
52W High
₹481.5
52W Low
₹312.55

Technical Indicators

Key Insights

Strengths

1
  • Company has a good return on equity (ROE) track record: 3 Years ROE 25.2%

Weaknesses

1
  • Promoter holding has decreased over last 3 years: -17.7%

Growth Rate

Revenue Growth
5.20% ↗
Net Income Growth
-24.42% ↘
Cash Flow Change
69.62% ↗
ROE
36.92% ↗
ROCE
28.70% ↗
EBITDA Margin (Avg.)
-22.07% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

Indus Towers trades at a reasonable PE of 15.3x with strong historical ROE of 25%, but TTM profit decline of -26% and significant promoter holding reduction of -17.7% over 3 years raise concerns. The 2.66% dividend yield provides income support, but split analyst opinion (48% buy vs 35% sell) reflects uncertainty around near-term earnings trajectory.

Bull Case 8
  • Attractive valuation at PE of 15.3x, well below broader market multiples for infrastructure plays
  • Strong 3-year ROE track record of 25.2%, indicating efficient capital deployment in tower infrastructure
  • Healthy dividend yield of 2.66% provides downside protection and income for investors
  • Compounded sales growth of 18% over 5 years demonstrates consistent revenue expansion driven by telecom network rollouts
  • 3-year stock CAGR of 36% shows strong medium-term price appreciation and investor confidence
  • Compounded profit growth of 50% over 3 years reflects significant earnings recovery from earlier stress period
  • Market cap of Rs 1,09,853 crore positions the company as a large-cap with institutional interest and liquidity
  • 10-year compounded sales growth of 19% demonstrates long-term structural demand for passive telecom infrastructure
Bear Case 8
  • TTM compounded profit decline of -26% signals significant near-term earnings deterioration
  • Promoter holding decreased by -17.7% over 3 years, indicating lack of promoter confidence or strategic divestment
  • Analyst consensus is deeply divided with 34.78% sell ratings (8 out of 23 analysts), reflecting material downside risks
  • TTM sales growth has decelerated to just 8% compared to 5-year CAGR of 18%, indicating slowing momentum
  • 1-year stock CAGR of only 2% suggests the market is pricing in near-term headwinds despite reasonable valuations
  • 10-year stock CAGR of just 2% implies poor long-term wealth creation for buy-and-hold investors
  • Last year ROE declined to 20% from 3-year average of 25%, showing deteriorating return profile
  • 5-year stock CAGR of 10% significantly lags the 5-year compounded profit growth of 15%, indicating valuation compression

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 2
  • UBS downgrades to sell Jun 9

    UBS downgraded Indus Towers to 'sell' from 'neutral' and slashed price target to ₹395 from ₹495, citing overly optimistic tariff hike expectations and slowing sector revenue growth (~8% YoY in Q4 FY26).

  • Tariff hike consensus at risk Jun 9

    UBS warns that market consensus on a mobile tariff hike in FY27 may be too optimistic given challenging macroeconomic environment and persistent inflationary pressures, potentially impacting tower company revenues.

Positives 4
  • CLSA sees 32% upside May 26

    CLSA issued a 'high conviction outperform' with ₹580 target (32% upside), citing 30,000-40,000 new tenancies in FY26, projected 36,000 cumulative tower additions and 77,000 tenancy additions over FY26-29.

  • Strong free cash flow profile May 26

    CLSA notes long-term contracts cover ~90% of EBITDA with annual escalation potential, attractive valuation at 6x EV/EBITDA, and high free cash flow enabling continued dividend payouts.

  • Telecom sector multi-year recovery Jun 9

    Elara Capital highlights multi-year recovery driven by ARPU improvement, structural data demand, lower incremental capex, and industry consolidation from 17 to 4 operators setting stage for sustained ARPU growth.

  • Court relief boosts Vi viability Jun 9

    Bombay High Court quashed retrospective spectrum charges giving Vodafone Idea ₹11,000 crore relief, potentially improving Vi's financial health and its ability to sustain tower tenancies with Indus Towers.

Neutral 4
  • ₹42.81 Cr block trade on NSE Jun 16

    Institutional block trade of ~10.35 lakh shares at ₹413.45 per share worth ₹42.81 crores executed on NSE, indicating institutional portfolio rebalancing.

  • ₹20.72 Cr block trade on NSE Jun 8

    Block trade of ~4.86 lakh shares at ₹426.50 per share worth ₹20.72 crores on NSE, typical institutional activity with minimal market impact.

  • IEPF share transfer notice Jun 9

    Indus Towers published mandatory notice on June 9, 2026 for transfer of shares with unclaimed dividends of 7+ consecutive years to IEPF, a routine regulatory compliance action.

  • Bharti confirms no encumbrance Jun 6

    Bharti Airtel declared no encumbrance of shares in Indus Towers for FY26 under SEBI takeover regulations, confirming clean holding structure.

TL;DR: Indus Towers faces a split analyst consensus with UBS downgrading to sell (₹395 target) while CLSA maintains high conviction buy (₹580 target). The company's strength lies in robust tenancy additions (30,000-40,000 in FY26), stable long-term contracts covering 90% of EBITDA, and attractive 6x EV/EBITDA valuation. Key risks include potential disappointment on FY27 tariff hikes and macro headwinds. The Bombay High Court's spectrum relief for Vi is a mild positive for tenancy stability, but the divergent brokerage views suggest near-term uncertainty until tariff trajectory becomes clearer.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
6,753
7,076
7,132
7,199
7,193
7,383
7,465
7,547
7,727
8,058
8,188
8,146
8,101
Expenses
3,320
3,596
3,711
3,615
3,122
2,879
2,602
589
3,332
3,668
3,616
3,678
3,677
Operating Profit
3,433
3,480
3,422
3,584
4,072
4,504
4,864
6,958
4,395
4,390
4,572
4,468
4,424
OPM %
51%
49%
48%
50%
57%
61%
65%
92%
57%
54%
56%
55%
55%
Other Income
116
56
97
99
108
56
114
84
92
85
83
154
155
Interest
336
352
246
11
127
408
418
255
431
437
376
404
376
Depreciation
1,320
1,374
1,526
1,596
1,564
1,560
1,580
1,568
1,693
1,704
1,801
1,798
1,838
PBT
1,893
1,810
1,747
2,076
2,489
2,592
2,980
5,219
2,363
2,334
2,478
2,420
2,365
Tax %
26%
26%
26%
26%
26%
26%
25%
23%
25%
26%
26%
27%
24%
Net Profit
1,399
1,348
1,295
1,540
1,853
1,926
2,224
4,003
1,779
1,737
1,839
1,776
1,793
EPS in Rs
5.19
5
4.8
5.72
6.88
7.15
8.43
15.17
6.74
6.58
6.97
6.73
6.8
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
11,668
5,558
6,085
6,621
6,826
6,743
13,954
27,717
28,382
28,601
30,123
32,493
Expenses
6,664
3,070
3,260
3,464
3,714
3,185
6,775
12,816
18,713
14,044
9,473
14,680
Operating Profit
5,004
2,488
2,825
3,157
3,112
3,558
7,179
14,901
9,669
14,557
20,650
17,813
OPM %
43%
45%
46%
48%
46%
53%
51%
54%
34%
51%
69%
55%
Other Income
522
1,679
1,960
1,599
1,559
1,846
1,262
458
85
1,490
764
477
Interest
290
33
39
46
53
335
836
1,603
1,670
1,864
1,858
1,552
Depreciation
2,185
1,155
1,166
1,180
1,066
1,282
2,848
5,325
5,324
6,060
6,402
7,141
PBT
3,052
2,979
3,580
3,529
3,553
3,788
4,757
8,431
2,759
8,122
13,154
9,598
Tax %
35%
25%
23%
29%
30%
13%
21%
24%
26%
26%
24%
26%
Net Profit
1,992
2,247
2,747
2,494
2,494
3,299
3,779
6,373
2,040
6,036
9,932
7,145
EPS in Rs
10.52
11.85
14.85
13.48
13.48
17.83
14.02
23.65
7.57
22.4
37.65
27.08
Div. Payout %
105%
25%
108%
104%
111%
59%
143%
47%
0%
0%
0%
52%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
1,894
1,897
1,850
1,850
1,850
1,850
2,695
2,695
2,695
2,695
2,638
2,638
Reserves
15,126
16,345
13,650
15,115
12,682
11,693
13,182
19,456
18,415
24,344
29,860
37,008
Borrowings
2,582
0
278
0
6
4,627
21,576
19,726
19,185
20,531
21,156
21,127
Other Liabilities
7,552
2,461
5,163
2,661
2,577
1,584
7,491
6,091
6,278
8,298
9,514
10,544
Total Liabilities
27,155
20,703
20,941
19,625
17,115
19,754
44,944
47,968
46,572
55,868
63,168
71,316
Fixed Assets
14,812
6,063
5,794
5,595
5,332
6,714
31,800
31,826
32,384
39,300
44,380
49,514
CWIP
226
70
58
110
118
54
274
179
355
422
567
630
Investments
5,882
10,059
11,172
12,327
9,906
11,170
2,271
1,652
276
3
1,486
4,316
Other Assets
6,234
4,511
3,916
1,593
1,759
1,815
10,598
14,311
13,559
16,143
16,735
16,856
Total Assets
27,155
20,703
20,941
19,625
17,115
19,754
44,944
47,968
46,572
55,868
63,168
71,316
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
3,990
1,912
2,866
3,469
3,159
2,315
7,481
9,121
7,905
11,582
19,645
15,684
Investing
-937
1,548
-237
-1,855
1,600
-1,012
1,798
-2,174
-1,730
-7,546
-10,910
-10,198
Financing
-3,188
-1,453
-2,671
-3,555
-4,795
-1,185
-9,377
-5,982
-7,133
-3,995
-8,648
-5,588
Net Cash Flow
-136
2,007
-42
-1,940
-36
118
-98
966
-958
41
87
-102
Free Cash Flow
2,175
1,113
1,960
2,521
2,329
1,586
5,529
6,252
4,737
3,136
13,388
7,786
CFO/OP
97
105
130
136
128
80
119
74
105
92
104
99
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
11
13
18
15
29
20
100
93
63
82
58
55
Cash Conversion Cycle
11
13
18
15
29
20
100
93
63
82
58
55
Working Capital Days
-106
-42
-207
-41
-24
-149
-173
11
3
3
-2
56
ROCE %
15%
14%
18%
23%
21%
23%
19%
25%
11%
22%
29%
19%

Shareholding Pattern

As of Mar 2026
Promoters 51.26%
FIIs 25.09%
DIIs 19.68%
Public 2.70%
Others 1.27%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
69.85%
69.85%
69.85%
69.85%
67.49%
68.81%
69.00%
69.00%
69.00%
69.00%
69.00%
69.00%
69.00%
52.01%
53.01%
50.00%
50.00%
50.00%
51.03%
51.03%
51.26%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
16.40%
23.15%
24.19%
26.15%
26.42%
27.51%
26.20%
25.92%
25.09%
DIIs
2.30%
2.54%
0.35%
0.81%
0.70%
0.56%
2.89%
2.88%
2.46%
4.52%
6.58%
6.98%
9.89%
16.99%
16.99%
17.80%
18.41%
18.17%
18.24%
18.95%
19.68%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
0.46%
0.62%
0.55%
0.75%
1.03%
1.16%
1.35%
1.33%
1.62%
1.91%
2.24%
2.55%
3.41%
4.85%
3.91%
4.17%
3.67%
3.01%
3.11%
2.80%
2.70%
Others
27.40%
27.00%
29.25%
28.59%
30.78%
29.47%
26.77%
26.79%
26.93%
24.57%
22.18%
21.47%
1.30%
3.00%
1.91%
1.88%
1.49%
1.30%
1.41%
1.29%
1.27%
No. of Shareholders
81,890
1,10,943
1,17,896
1,53,708
1,97,782
2,07,607
2,33,276
2,30,242
2,58,997
2,71,679
2,64,674
2,67,108
3,10,694
4,06,689
4,10,259
4,41,036
4,21,427
3,66,757
3,80,788
3,48,339
3,35,735

Documents

1
Concall - Mar 2017 Mar 2017
2
Concall - Jun 2017 Jun 2017
3
Concall - Jun 2017 Jun 2017
4
Concall - Sep 2017 Sep 2017
5
Concall - Sep 2017 Sep 2017

Frequently Asked Questions about Indus Towers Ltd

What does Indus Towers Ltd do?
Indus Towers Limited is engaged in the business of object of, inter-alia, setting up, operating and maintaining wireless communication towers.[1]
Where is Indus Towers Ltd (INDUSTOWER) listed?
Indus Towers Ltd is listed on the Indian stock exchanges. It is listed on NSE: INDUSTOWER and BSE: 534816. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Indus Towers Ltd belong to?
Indus Towers Ltd operates in the Telecommunication sector within the Telecom - Services industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Indus Towers Ltd?
Indus Towers Ltd has a market capitalisation of approximately ₹105909.04 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Indus Towers Ltd?
The Price-to-Earnings (PE) ratio of Indus Towers Ltd is 14.53. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Indus Towers Ltd?
Over the past 52 weeks, Indus Towers Ltd has traded between a low of ₹312.55 and a high of ₹481.5. This range helps investors understand the stock's price volatility and recent trading levels.
Does Indus Towers Ltd pay dividends?
Yes, Indus Towers Ltd has a dividend yield of 2.76%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Indus Towers Ltd?
Indus Towers Ltd has a Return on Equity (ROE) of 22.32%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Indus Towers Ltd on Tapetide?
On Tapetide, you can view Indus Towers Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Indus Towers Limited is engaged in the business of object of, inter-alia, setting up, operating and maintaining wireless communication towers.[1]

Website industowers.com
CEO Mr. Prachur Sah
Employees 3,791
Listed 2012-12-28
Face Value ₹ 10
Issued Size 2,63,81,62,757

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