Neutral Indus Towers; target of Rs 425: Motilal Oswal

Motilal Oswal recommended Neutral rating on Indus Towers with a target price of Rs 425 in its research report dated February 03, 2026.

Broker Research

February 06, 2026 / 17:52 IST

Neutral

Motilal Oswal's research report on Indus Towers

Indus Towers’ (Indus) 3QFY26 was broadly in line with our estimates, with recurring EBITDA (excl. provision reversals) rising 2% QoQ to INR44.7b. Operationally, tenancy additions picked up QoQ (after a subdued 2Q), driven by acceleration in Vi’s rollouts during 3Q. While, optically Indus’ share of Vi’s new tenancy additions appears lower in 3Q, management indicated that certain new towers were also built for Vi and that Indus continues to garner a high share in its key customers’ rollouts. On our estimates, Indus has gained ~70% share of Vi’s rollouts since 2QFY25.

Outlook

We reiterate our Neutral rating with a revised DCF-based TP of INR425 (earlier INR400), premised on 6.5x FY28E pre-IND AS EBITDA. The risk-reward appears fairly balanced at CMP (bull case: INR490; bear case: INR395).

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