Synopsis: Indus reported sequential income and working revenue development however delivered decrease revenue and compressed margins versus the year-ago quarter. Tower additions and co-location metrics improved, whereas lean-segment yields confirmed stress. Do you have to Purchase, Promote Or Maintain?
A telecom Infrastructure inventory posted combined working developments and profitability shifts, with income inching larger sequentially however margins contracting year-on-year. Market focus is on tower additions, sharing metrics and free money move dynamics.
Indus Towers Ltd holds a market cap of Rs.101,516.50 crore. The inventory opened at Rs.386, hit an intraday excessive of Rs.389.30 towards a earlier shut of Rs.385.75, marking an increase of 0.92 % from the earlier shut.
Monetary Snapshot -Q2FY26
On a quarter-on-quarter foundation, Indus posted a modest sequential enchancment in topline and working revenue however delivered decrease revenue and margins versus the year-ago quarter.
Gross sales elevated from Rs.8,058 crore to Rs.8,188 crore, a sequential rise of 1.61 %. Working revenue rose from Rs.4,390 crore to Rs.4,572 crore, a rise of 4.15 %. Working margin improved from 54 % to 56 %, a sequential growth of three.70 % on the margin base. PBT rose from Rs.2,334 crore to Rs.2,478 crore, up 6.17 %. Internet revenue elevated from Rs.1,737 crore to Rs.1,839 crore, a sequential rise of 5.87 %. EPS moved from Rs.6.44 to Rs.6.83, up 6.06 %.
On a year-on-year foundation, income rose whereas working revenue, PBT, PAT and EPS declined, reflecting margin compression and decrease profitability in contrast with the identical quarter final 12 months.
Gross sales rose from Rs.7,465 crore to Rs.8,188 crore, up 9.69 % year-on-year. Working revenue declined from Rs.4,864 crore to Rs.4,572 crore, down 6.00 % year-on-year. Working margin fell from 65 % to 56 %, a contraction of 13.85 % on the margin base. PBT decreased from Rs.2,980 crore to Rs.2,478 crore, down 16.85 %. Internet revenue declined from Rs.2,224 crore to Rs.1,839 crore, a drop of 17.31 %. EPS fell from Rs.8.25 to Rs.6.83, down 17.21 %.
Operational Highlights
As of September 30, 2025, Indus’ macro tower base reached 256,074, reflecting a sequential addition of 4,301 towers from 251,773 and an annual rise of 26,416 from 229,658. Macro co-locations elevated to 415,717, up 4,505 sequentially from 411,212 and up 36,481 year-on-year from 379,236.
The common sharing issue stayed at 1.63 throughout the quarter whereas the closing sharing issue was marginally decrease at 1.62 versus 1.63 final quarter. Sharing income per tower per 30 days rose 1.3 % sequentially to Rs.67,924 from Rs.67,036 however was down 0.2 % year-on-year from Rs.68,080. Sharing income per sharing operator per 30 days improved 1.4 % sequentially to Rs.41,714 from Rs.41,132 and recorded 1.4 % development year-on-year from Rs.41,125.
Within the lean tower phase, co-locations elevated to 13,963, up 28 sequentially from 13,935 and up 2,603 from 11,360 a 12 months earlier. Nonetheless, lean sharing income per sharing operator per 30 days declined 1.4 % sequentially to Rs.16,127 from Rs.16,362 and was down 1.8 % year-on-year from Rs.16,431.
Towers and co-locations embrace belongings acquired from Bharti Airtel Ltd comprising 10,380 macro towers and a couple of,226 lean co-locations acknowledged within the quarter ended March 31, 2025, with earlier closing variations adjusted within the June 2025 quarter.
Analyst View
Citi maintains a Purchase score and has raised the goal value to Rs.500 from Rs.460. From the earlier shut of Rs.385.75, the implied potential upside to the Rs.500 goal is roughly 29.62 %. The brokerage termed Q2 as a combined quarter however famous that the enhancing monetary place of Vodafone Concept (Vi) enhances the corporate’s outlook.
Whereas free money move declined sequentially, the money reserves stay robust. Citi additionally said that Indus’ deliberate Africa growth might be natural and funded by way of debt, and believes that investor issues round delayed shareholder payouts, Vi’s sustainability, and Bharti Airtel’s slower tower rollouts have been exaggerated.
Concerning the Firm
Indus Towers Restricted is India’s main passive telecom infrastructure supplier, deploying, proudly owning and managing telecom towers and communication buildings for a number of cell operators throughout all 22 telecom circles. With a portfolio of 256,074 telecom towers, Indus is without doubt one of the nation’s largest tower corporations and serves all wi-fi telecommunication service suppliers in India whereas being an trade early-adopter of inexperienced vitality initiatives in operations.
-Manan Gangwar
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