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Indus Towers shares get upgrades on hopes of dividend resumption; targets raisedA financially stronger Vi would be able to resume and complete its capex plan of ₹50,000-₹55,000 crore, which could, in turn, boost tenancy growth for Indus Towers.By Meghna Sen    | Reema Tendulkar   October 28, 2025, 11:56:57 AM IST (Published)2 Min ReadShares of Indus Towers Ltd. are trading over 3% higher on Tuesday, October 28, driven by two key factors, including strong quarterly results and optimism around Vodafone Idea's (Vi) prospects following potential adjusted gross revenue (AGR) relief.

Indus Towers posted a strong operational performance for the September quarter, with EBITDA margins expanding 180 basis points sequentially to 56.3%.

Q1FY25Q2FY25Q3FY25Q4FY25Q1FY26Q2FY26EBITDA %

61.6%

65.7%

92.7%

56.9%

54.5%

56.3%

The improvement was aided by a ₹195.2 crore writeback of provisions for doubtful debts related to Vi, compared with ₹88.3 crore in the previous quarter. Vi has been paying most of its monthly dues on time.

Revenue rose 1.6% quarter-on-quarter and 9.7% year-on-year, while net profit climbed 5.9% sequentially to ₹1,839.3 crore.

Tower additions also saw an uptick compared with the previous quarter.

 Q1FY25Q2FY25Q3FY25Q4FY25Q1FY26Q2FY26adds

6174

3748

4985

14662

2468

4301

The Supreme Court's decision on Monday allowing the government to reconsider Vi's AGR dues has sparked optimism, as the relief could improve the telecom operator's cash flows over the next few years.

How does it help Indus Tower

A financially stronger Vi would be able to resume and complete its capex plan of ₹50,000-₹55,000 crore, which could, in turn, boost tenancy growth for Indus Towers.

What is the trigger going ahead

Brokerages believe dividend reinstatement could be a key trigger. IIFL sees a high likelihood of Indus reinstating dividends or launching a share buyback by the end of FY26.

Jefferies upgraded Indus Towers to 'Buy' with a target price of ₹425, citing an expected 6% profit CAGR over FY26-28 and a 7% dividend yield, which make the risk-reward attractive.

CLSA has a 'High Conviction Outperform' rating on the stock, with a target price of ₹520.

IIFL, meanwhile, said its analysis suggests limited downside risk for Indus in all scenarios where Vi's survival is assumed.

It has raised its target price from ₹369 to ₹407, as it now assumes a 0% probability of Vi's collapse versus 15% earlier.

The company will hold its post-earnings conference call today at 2:30 pm.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsIndus TowersIndus Towers shareIndus Towers sharesshare market today