Largely stable 1Q; Africa rollout to begin in 2Q: Vi raising capital and Jio tenancies‘ renewal keenly watched; maintain Buy with a TP of INR505

Research evidence excerpt

Largely stable 1Q; Africa rollout to begin in 2Q: Vi raising capital and Jio tenancies‘ renewal keenly watched; maintain Buy with a TP of INR505

Global Markets Research

Indus Towers INUS.NS INDUSTOW IN 28 July 2026

EQUITY: TELECOMS

RatingLargely stable 1Q; Africa rollout to begin in 2Q Remains Buy

Target priceVi raising capital and Jio tenancies’ renewal keenly Remains INR 505

watched; maintain Buy with a TP of INR505

Closing price INR 382 28 July 2026Marginal sequential EBITDA increase and in line with our estimates

Indus Towers reported steady performance in 1QFY27 with a rental revenue growth of 1% Implied upside +32.2%q-q and 5% y-y (1% ahead of our estimate; Fig.1), underpinned by 1.0%/5.1% q-q/y-y

growth in tenancies (in line) while tenancy ratio remained stable at 1.62x (in line). Rental Market Cap (USD mn) 10,498.5

per tenant was flat q-q at INR41,082/month, 1% ahead of our estimate. EBITDA (ex- ADT (USD mn) 31.6

provisions) at INR45.4bn was up 1% q-q, largely due to 1% q-q increase in revenue per

tenant, and lower operating expenses, partly offset by higher energy loss at -4.6% vs -

3.6% in the previous quarter. Relative performance chart

Balance sheet recorded a sequential improvement with net cash (excluding lease

liabilities) rising to INR64bn vs INR49.3bn in the previous quarter (1QFY26: INR24.6bn).

This was helped by a 26% q-q decline in capex on fewer new tower additions. We

estimate a ~30% FCF CAGR over FY26-29F, reaching INR80.2bn by FY29F.

Africa tower rollouts to begin in 2QFY27F; strong orderbook for next 3-4 quarters

The company guided a gradual rollout of telecom towers in Nigeria, Uganda and Zambia

starting 2QFY27E. Initial capex will be limited and will be funded largely via debt, though

management refrained from providing any capex guidance.