Reduce Indus Tower: target of Rs 360: ICICI Securities
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓ICICI Securities maintained a reduce rating on Indus Towers with a target price of Rs 360.
- ✓While Q2FY27 tenancy grew by 5.9% year-on-year, rental revenue growth stayed moderate at 3.8%.
- ✓High capital expenditure currently restricts earnings per share growth, even as the company continues to see strong order bookings for future.
Story at a Glance
- Category
- BUSINESS
- Reported By
- MoneyControl
- Reading Speed
- 1 Minute(s)
- Market Focus
- India Economy
ICICI Securities research report on Indus Tower Indus Towers (Indus)' Q2FY27 tenancy grew faster at 5.9% YoY; however, rental revenue growth was moderate, at just 3.8%, due to a decline in ARPT (down 1.6% YoY). Cash EBITDA grew faster QoQ at 3.3% (dipped 2.1% YoY) due to lower other network expenses, and drop in energy losses on seasonality. Rental cash EBITDA grew 2.4% QoQ. Capex remains elevated (28.2% of revenue), supporting tower and tenancy net add, which is restricting an uptick in EPS on faster growth in D&A (7.9% YoY); also, impeding FCF generation. Indus continues to garner strong order booking, improving visibility for sustained tenancy net add in FY27, which is broadly estimated; however, earnings growth remains capped.
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