Buy Indus Towers; target of Rs 460: Emkay Global Financial

Emkay Global Financial is bullish on Indus Towers has recommended buy rating on the stock with a target price of Rs 460 in its research report dated October 28, 2025.

Broker Research

October 29, 2025 / 13:28 IST

BUY

Emkay Global Financial' research report on Indus Towers

Indus Towers (Indus) reported strong results, with slightly higher revenue than street estimate and 50bps QoQ rise in EBITDA margin, adjusting for provision reversal. While tenancy addition was healthy (at 4.5k), it has reduced QoQ (5.7k in Q1FY26). The increase in capex has resulted in lower FCF during the quarter, and we expect higher capex to drive revenue and increase energy margin going ahead. The management highlighted that it is testing the waters for its Africa foray and expects some rollout over coming 3-6 months. We believe the Supreme Court (SC) decision, allowing the government to reconsider the issue of reassessment of Vodafone Idea (VI)’s AGR dues, bodes well and grants confidence on long-term sustainability of VI.

Outlook

Hence, we raise our target multiple to 7x from 6.5x, and arrive at TP of Rs460 (from Rs410 earlier, a ~12% raise).

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