Neutral Indus Tower; target of Rs 390: Motilal Oswal

Motilal Oswal recommended Neutral rating on Indus Tower with a target price of Rs 390 in its research report dated December 18, 2025.

Broker Research

December 19, 2025 / 11:46 IST

Neutral

Motilal Oswal's research report on Indus Tower

We recently interacted with Indus Towers’ (Indus) senior management to understand the company’s growth outlook and execution strategy. Key takeaways are as follows: Indus has been gaining market share in new tower builds as well as benefiting from the shift from other towercos in recent quarters, driven by its operational efficiencies and network uptime. Management remains confident of securing most of RJio’s upcoming tenancy renewals (~12-13% revenue share), given the renewal track record in the past and attractive rentals. Most of these are 2nd or 3rd tenancies, with sharing benefits built in. The Africa foray is still at an initial stage, and concrete investment plans have not been finalized. However, management believes Africa is a good growth market, with presence of a strong anchor tenant in Airtel Africa (AAF). Further, the company’s scale, along with Bharti’s knowledge of African markets, would help Indus deliver lower capital and operating costs, which should aid incremental tenancy additions.

Outlook

We reiterate our Neutral rating with a DCF-based TP of INR390, premised on DCF-based 6.5x Dec’27 EV/EBITDA. While any potential relief for Vi is sentimentally positive for Indus, we believe risk reward is uncompelling at the CMP (bull case: INR435; bear case: INR345).

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