Analyst Concall
Indus Towers eyes acquisitions for growth plans in Africa
This story was originally published at 17:00 IST on 28 October 2025
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--Indus Towers: Plan to foray into Nigeria, Uganda, Zambia soon
--Indus Towers: May consider acquisitions in Africa later for expansion
--Indus Towers: Plan to expand into other African countries later
--Indus Towers: Foray into Africa will be via organic path initially
--Indus Towers: Confident about robust growth in India for next 3-4 quarters
--CONTEXT: Comments by Indus Towers mgmt in post-earnings call with analysts
--Indus Towers: Anchor customer in Africa gives confidence on foray
--Indus Towers: Will foray into Africa in next 3-6 months
--Indus Towers: Foray into Africa to be financed by both debt and equity
By Avishek Rakshit & Arya S. Biju
KOLKATA/MUMBAI– Indus Towers Ltd., which is planning to foray into Africa in the next 3-6 months, is eyeing acquisitions at a later date as part of its long-term growth plans in the continent, a senior company official said Tuesday.
Indus Towers will first commence operations in Nigeria, Uganda, and Zambia by constructing towers and the necessary mobile network infrastructure. Thereafter, based on the "learnings" from these countries, the telecom tower company will foray into other African countries, the official said. The acquisitions will be considered part of its growth strategy, but targets must have the right valuation, the official said.
"The initial part is organic growth, we will be entering and making new towers, expanding our understanding of the local market. And if an opportunity comes at the right position, the inorganic part may be considered," the company official told sector analysts in a post-earnings call.
Earlier this month, Indus Towers' board approved the incorporation of a wholly owned subsidiary in the UAE that will invest in Africa. Indus Towers will make an initial investment of up to INR 200 million in this subsidiary towards subscription of share capital in one or more tranches.
The company official said that the presence of a key customer in Africa gives it the confidence of a successful foray. Bharti Airtel Ltd.'s subsidiary, Airtel Africa plc, which is listed on the London Stock Exchange, operates in six East African countries and serves over 166 million customers. Bharti Airtel is the parent company of Indus Towers, in which it holds a 51% stake. Bharti Airtel is also a key customer for Indus Towers.
"We want to leverage our core strength to enter a strong market with an anchor customer where we can create value for our customers, ensure the differentiation that we have in building low-cost towers, delivering better service quality, improving energy efficiency, and create opportunities for us to build new towers with an anchor customer, get other tenants from other customers," the official said.
Without naming Airtel directly, the official said that this "anchor customer" has been operating in Africa for quite some time and has a good understanding of the market and the prevailing conditions, which will enable the company to understand and avoid undue risks. "We will leverage their (Airtel Africa's) presence there (Africa) and see how we can reduce or mitigate our risks," the official said.
The management of Indus Towers, however, declined to specify the quantum of investment its foray into Africa will entail. Although the entry into the continent will be financed by a mix of debt and equity, and the company will use "leverage" for the same, the official said. The investment depends on the competitive landscape in the African countries it is entering, the types of master service agreements and multi-service agreements the company can conclude, and other factors, the official added.
"We are working through the business plan and the capital requirement and so on... In our capital structure, we will certainly desire to have both a good mix of debt and equity. So, there will be a good amount of leverage that we are expecting," a second company official said.
For its operations in India, the official said the company is confident of robust growth over the next 3-4 quarters, driven by its order book position. However, the official did not provide the value of the order book.
Tuesday, shares of Indus Towers closed at INR 385.90 on the National Stock Exchange, up 3.9% from the previous close. Indus Towers had announced its Jul-Sept quarter earnings on Monday. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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