Analysing Jio’s tenancy renewal risk: We see value in the stock even in unlikely scenario of Indus losing all tenancies from Jio; maintain Buy

Research evidence excerpt

Analysing Jio’s tenancy renewal risk: We see value in the stock even in unlikely scenario of Indus losing all tenancies from Jio; maintain Buy

Global Markets Research

Indus Towers INUS.NS INDUSTOW IN 8 July 2026

EQUITY: TELECOMS

RatingAnalysing Jio’s tenancy renewal risk Remains Buy

Target priceWe see value in the stock even in unlikely scenario of Remains INR 505

Indus losing all tenancies from Jio; maintain Buy

Closing price INR 383 7 July 2026Sharp correction on nervousness with respect to Jio’s tenancy renewal

Indus Tower’s share price has corrected by ~11% (vs Nifty 50: +3%) since 1 June mainly due to Implied upside +31.9%market concerns about the upcoming renewal of large tenancies from Jio Platforms (unlisted) which

were signed ~10 years back. We understand that negotiations between Indus and Jio have been Market Cap (USD mn) 10,630.4

ongoing for a long time and some expired Jio tenancies are currently continuing based on the ADT (USD mn) 33.1

previous master service agreement (MSA) pending the result of the ongoing negotiations. Our base

case assumes no major shakeup in Jio's tenancies given: 1) economics may not be favourable to

move into a single tenant tower especially in high-density urban areas where Jio typically has Relative performance chart

tenancies with Indus; 2) Bharti Airtel (BHARTI IN, Buy) is also a major tenant for Altius (unlisted)

which can be used by Bharti (as Indus’ promoter) as a leverage in its negotiations with Jio; and 3)

moving telecom equipments from ~50k towers of Indus and also reconnecting new towers with fibre

networks may be tedious and economically unviable. According to our earlier discussion with Indus’

management, it takes roughly two months to identify a new site, build a tower, and get grid