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Informist, Monday, Oct. 20, 2025

By Shakshi Jain

NEW DELHI – Telecommunications infrastructure provider Indus Towers Ltd. is expected to report modest sequential top line and bottom line growth for the September quarter, helped by higher net tower additions and co-locations. The company is a key beneficiary of network expansion by Vodafone Idea Ltd. and incremental rollouts by parent Bharti Airtel Ltd. 

The consolidated bottom line of Indus Towers for the reporting quarter is expected to rise almost 4% sequentially to INR 18.03 billion, according to the average of estimates from five brokerages. However, on a year-on-year basis, the profit after tax is expected to fall nearly 19%. The highest estimate for net profit is INR 22.46 billion by JM Financial Institutional Securities Pvt. Ltd. and the lowest is INR 16.64 billion by ICICI Securities Ltd.

The company's revenue for the September quarter is seen rising 1% sequentially and 9% on year to INR 81.41 billion. The highest estimate for revenue is INR 81.72 billion from Emkay Global Financial Services Ltd. and the lowest is INR 80.82 billion from JM Financial. 

Analysts estimate the company net added nearly 3,500 towers in the September quarter. The increase in the number of co-locations is expected around 7,000 for the three-month period, brokerages said.

In the June quarter, Indus Towers had added 2,468 large towers and 5,834 co-locations on a net basis.

Co-location is the practice of mounting telecom antennae of multiple carriers or operators on the same tower. Net tenancy addition is the change in the number of telecom companies or tenants using a tower company's towers over a specific period, calculated as new leases minus exits.

Kotak Securities expects seasonally higher other costs to offset the benefit from higher net tenancies for Indus Towers for the September quarter. Meanwhile, Motilal Oswal estimates a marginal sequential decline in the company's average revenue per tenant per month for the reporting quarter.

Indus Towers' earnings before interest, tax, depreciation, and amortisation for the September quarter is expected to decline 2% sequentially and 12% year-on-year to INR 43.05 billion, according to the average of estimates from five brokerages.

Adjusted for one-offs and provision write-offs, the company's EBITDA for the reporting quarter is expected to improve nearly 2.4% on quarter to INR 44 billion, according to Motilal Oswal.

In the June quarter, Indus Towers had written back INR 880 million in provisions linked to doubtful receivables. The company is not expected to report any doubtful debt write-back for the September quarter given Vodafone Idea has paid all of its undisputed dues, JM Financial said.

Indus Towers is working towards reducing its dependence on diesel for its energy needs by increasing the share of renewable sources. The company is expected to report a slight improvement in energy margin on a sequential basis, according to JM Financial.  

Indus Towers provides energy solutions for powering its customers' active equipment in a cost-effective way. To power its towers, the company uses grid energy from state electricity boards. The company uses diesel where reliable grid energy is not available.

In the year-ago September quarter, the company had reported a consolidated net profit of INR 22.24 billion and revenue from operations of INR 74.65 billion. For the June quarter, Indus Towers had reported a consolidated net profit of INR 17.37 billion on revenues of INR 80.58 billion.

In Apr-Jun, the company's net debt moderated to INR 167.36 billion from INR 180.20 billion a quarter ago.

Indus Towers will announce its September quarter earnings on Oct. 27.

Monday, shares of Indus Towers ended at INR 354.40 on the National Stock Exchange, up 3.3% from the previous close. The stock is down 2.4% since the company reported its results for the June quarter on Jul. 31. 

Of the six research recommendations on the stock available with Informist, three have a "buy" rating on Indus Towers while two have a "hold" rating and one has a "sell" recommendation. The average target price of the "buy" recommendations is INR 458 and that of the "hold" calls is INR 385.

Following are the Jul-Sept earnings estimates for Indus Towers from five brokerages in descending order of the estimate of net profit in INR million:

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Edited by Deepshikha Bhardwaj

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