Sharp slowdown in core service EBITDA growth trajectory was the key highlight of what was a disappointing earnings print. Service revenues and EBITDA were impacted by weakness in both the core operating metrics \u2013tenancy additions and rentals. A quarter\u2019s disappointment by itself is not material; what is important to appreciate is the risk associated with multi-year extrapolation of good quarters in a customer-capex-linked business like towers. Our EBITDA forecasts see modest cuts. From an operational standpoint, there was disappointment on both the key metrics \u2013 (1) net tenancy additions of 1,687 q-o-q fell materially short of our estimated 6,040; net additions pace was also significantly below the levels seen for the past three quarters and (2) service rental per tenant fell 2% q-o-q and 1.6 % y-o-y to Rs 34,427\/month, 3.1% below our estimate. Decline in service rentals was a negative surprise. Tenancy adds were impacted by exits of 2,711 tenancies. Adjusted gross adds of 7,248 were below the 9,700-13,500 pace seen in the past three quarters. The high levels of exits and likely sustained momentum in 3G\/4G loading by the incumbents should have both been accretive to the rental metric. That rental\/tenant declined despite these kickers was a surprise. The company termed the weak tenancy additions for 2QFY18 as an aberration and expects strong tenancy growth momentum to resume. The management guided for a flat to marginal decline trajectory for service rental Tower build-out pace to remain slow in the near term as incumbents focus solely on loading 3G and 4G on existing sites. Indus has won bids for two smart city projects \u2014 Vadodara and New Delhi. The company refused to scope out the revenue or profit potential of the three such projects won to date, third one being Bhopal. Our DCF\/SOTP based target price for the stock stands revised up to Rs 385 TP increase is on account of removal of holdco discount for Indus stake. Reduce.