Indus Towers stock gains 2.4% today; outlook bullish despite Q2 profit decline -- check target price

Shares of Indus Towers Ltd gained as much as 2.4 percent on Tuesday morning, even after the company reported a 17.3 percent year-on-year decline in consolidated net profit for the July-September quarter. Brokerage firm CLSA shared a bullish stance citing strong core revenue growth and improving collections. The stock rose to Rs 380 in the opening trade, extending yesterday's gain of 3.3 percent.

Indus Towers Q2 FY26 results snapshot

Indus Towers posted a net profit of Rs 1,836.6 crore for Q2 FY26, compared with Rs 2,223.5 crore a year earlier and Rs 1,736.8 crore in the previous quarter. Total revenue rose 9.7 percent year-on-year to Rs 8,188.2 crore, while consolidated EBITDA declined 6 percent to Rs 4,613 crore, with a margin of 56.3 percent.

The company reported a Rs 195 crore writeback in provisions for doubtful receivables following improved collections. Indus also added 26,416 towers over the past 12 months, taking its total tower base to 2,56,074. CEO Prachur Sah said the company’s expansion into Africa and focus on automation and AI would help drive long-term growth and efficiency.

Brokerage views: Should you buy or sell Indus Towers stock?

CLSA issued a High Conviction Outperform rating on Indus Towers stock with a target price of Rs 520 per share, saying that Indus’ core revenue grew 11 percent year-on-year and 3 percent sequentially, ahead of estimates. The brokerage said reported EBITDA fell 6 percent year-on-year but rose 5 percent quarter-on-quarter, while adjusted EBITDA (excluding collection-related adjustments) rose 15 percent year-on-year.

Tenancy additions during the quarter stood at 4,505, slightly below expectations, though the base grew 10 percent on-year. CLSA also said the board’s dividend reinstatement remains awaited and that the company’s balance sheet remains healthy with net cash of Rs 2,960 crore.

At current levels, the stock trades at 5.5 times FY27 EV/EBITDA, CLSA said, reiterating its positive outlook on the telecom tower operator’s long-term prospects. Indus Towers shares have gained nearly 8 percent over the last one year, slightly outperforming benchmark Nifty 50 index.

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