The Indus Towers share price is down over 10% so far in 2026. The big concern is whether the share price has bottomed out or could slip further. Brokerages are confident on Indus Towers after its June quarter earnings, although concerns over Reliance Jio’s tenancy renewal have emerged as a key overhang. Emkay Global Financial Services lowered its target price citing limited visibility on the renewal, but Nomura maintained its bullish stance.
Emkay Global on Indus Towers: Target price cut
Emkay Global has cut the price target by 12% to Rs 475 from Rs 540, still looking at an upside of 24.3%. The cut in price target came on the back of the lack of visibility on RJio’s contract renewal. However, the brokerage maintained a ‘Buy’ rating on attractive valuations and strong cash generation.
Indus Towers’ Q1FY27 results were broadly in line with expectations, with both sustained tenancy addition and flat realisations resulting in 4.6% YoY revenue growth. EBITDA margin declined by 140 basis points sequentially to 53.2% due to lower energy margin.
The company’s management highlighted the company’s strong order book and expects the tower addition to accelerate in the coming quarter.
“On one hand, Vodafone Idea’s capex can accelerate Indus Towers’ tenancy addition, while on the other, uncertainty of Reliance Jio’s contract renewal can impact up to 15% of the revenue, in our view,” said the brokerage.
Emkay Global finds Indus Towers’ valuations at a discount to its global peers.
Nomura on Indus Towers: Retain ‘Buy’
Nomura, however, retained its ‘Buy’ rating and price target at Rs 505, implying an upside of 32%. The brokerage said that earnings came largely stable. The company’s Africa rollout is to begin in the second quarter of FY27.
Rental per tenant was flat sequentially at Rs 41,082 per month, which was 1% ahead of the brokerage’s estimates. EBITDA (excluding provisions) at Rs 4,540 crore was up 1% QoQ, largely due to a 1% QoQ 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.
The company guided a gradual rollout of telecom towers in Nigeria, Uganda and Zambia starting Q2FY27. Initial capex will be limited and will be funded largely via debt, though management refrained from providing any capex guidance.
“Indus remains a proxy play on Vodafone Idea’s survival and consolidation as India’s third major telecom player, in our view. We also expect Bharti Airtel to consolidate its stake in Indus Towers from the current 51.26% given the Board approval to raise stake by further 4.8%,” said Nomura.
Vodafone Idea raising capital and Jio tenancies’ renewal will be keenly watched.
Motilal Oswal on Indus Towers: Risk-reward balanced
Reiterating the same point, Motilal Oswal Financial Services highlighted Vodafone Idea’s fundraise and Reliance Jio’s tenancy renewals remain key monitorables.
Delays in Vodafone Idea’s potential fundraise could weigh on tenancy additions (currently
bake in 30k and 50k tenancies and 5G loadings from Vodafone Idea over FY26-29), while there is a risk of Reliance Jio’s tenancy exits (bake in 5k exits from Reliance Jio in H2 FY27, which is 10% of its overall portfolio with Indus Towers).
“We believe the risk-reward remains balanced after the recent correction in the stock price,” said Motilal Oswal.
Indus Towers share price performance
The share price of Indus Towers has risen 1.7% in the last five trading sessions. The stock has changed a little in the past one month. However, the stock has dropped almost 10% in the last six months. Indus Towers’ share has risen 7.4% in the past one year.