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Shares of Indus Towers rallied in early trade on Monday after Bharti Airtel announced plans to acquire an additional 5 per cent stake in the telecom infrastructure giant.

The stock rose as much as 3.78 per cent to Rs 397.25, while Bharti Airtel shares gained nearly 3 per cent to Rs 2,135.60 on the NSE.

At Rs 390.85 apiece, Indus Towers shares were up around 2 per cent on the BSE, taking the company’s market capitalisation to over Rs 1.03 lakh crore.

Based on Monday’s closing price of Rs 382.70, the 5 per cent stake is valued at over Rs 5,000 crore.

Currently, Bharti Airtel holds a 51.03 per cent stake in Indus Towers as of September 30, while public shareholders, including mutual funds and LIC, own about 48.93 per cent.

The proposed acquisition will depend on market conditions and regulatory approvals, according to Airtel.

The move comes after Indus Towers delivered a robust Q2 FY26 performance, reporting a 71.7 per cent year-on-year rise in net profit to Rs 2,224 crore, driven by higher tower additions and improved collections from Vodafone Idea (Vi).

The company also benefited from a Rs 1,077 crore write-back in provisions for doubtful receivables during the quarter.

Operationally, Indus Towers continued to expand its footprint, adding 3,748 new towers in Q2 and ending the period with 229,658 towers across 22 circles.

Co-locations, the number of sites hosting multiple telecom carriers, also rose by 4,308 to 379,236, signalling growing network demand amid India’s ongoing 5G rollout.

Indus Towers’ share price has been a steady outperformer in the telecom infrastructure space, delivering a 107.88 per cent return in the past two years.

The stock currently trades close to its 52-week high of Rs 429.90, well above its 52-week low of Rs 312.60.

Global brokerage Citi has maintained a Buy rating on Indus Towers, with a target price of Rs 500, implying a potential upside of more than 27 per cent from current levels.

Citi noted that the Supreme Court’s clarification on AGR dues for Vodafone Idea could pave the way for government relief measures, strengthening Indus Towers’ cash flow and growth prospects.

Anubhav Maurya is a Senior Sub-Editor at Zee Business, focusing on the stock market, personal finance, corporate news, and related sectors.

He has previously worked wi