Indus Towers: Strong Growth Prospects, Dividend Potential, and Market Outlook for 2025

Indus Towers reported a strong Q3 2024 performance, with a 159.9% increase in net profit and a 4.8% revenue growth. Citi has a ‘Buy’ rating with a target price of Rs 490, citing positive growth outlook and potential dividend payouts in Q4. Despite recent stock declines, the company is expected to see growth driven by new network rollouts and strong free cash flow.

Indus Towers: Strong Growth Prospects, Dividend Potential, and Market Outlook for 2025

Indus Towers is showing strong growth prospects, supported by network expansions from major telecom operators. In its Q3 2024 results, the company reported a consolidated net profit of Rs 4,003 crore, a 159.9% year-on-year increase. Revenue from operations grew by 4.8% to Rs 7,547 crore, and EBITDA surged by 93.2% to Rs 6,997 crore. This performance is attributed to robust collections from Vodafone Idea and steady tower additions.

Citi maintains a ‘Buy’ rating with a target price of Rs 490, citing a 15% tenancy growth forecast for FY26, driven by the acquisition of 16,000 towers. The company is also expected to generate strong free cash flow, which could lead to dividend payouts in Q4. Additionally, Citi sees potential in EV charging as a significant long-term revenue contributor. Despite the recent dip in share price to Rs 335.15, Citi’s outlook remains positive for the next 1-2 years. Indus Towers has a limited dividend payout history, with the last interim dividend declared in May 2022.

Indus Towers has experienced a significant decline in stock performance, falling by 4.24% on February 12, 2025, continuing a downward trend that has seen a 7.24% drop over the past three days. The stock has underperformed compared to both its sector, which declined by 2.8%, and the broader market, with the Sensex falling by 1.08%. The stock hit an intraday low of Rs 336.3, down 3.4% at its lowest point. Currently, it is trading below key moving averages across multiple timeframes, indicating a challenging market position. However, the stock has posted a 4.40% gain over the past month, outperforming the Sensex, which declined by 2.47%. This mixed performance reflects the volatility and competition in the telecom equipment sector.

Indus Towers closed the previous week with a loss of 7.64%. For the week of February 17-21, 2025, the stock is expected to face immediate support at Rs 321.80, and resistance at Rs 357.00. If the stock closes below the support level of Rs 321.80, a sharp decline could follow, with major support at Rs 308.10. On the positive side, if the stock closes above Rs 357.00, a breakout could occur, with major resistance at Rs 378.50. The expected trading range for the week is between Rs 286.60 on the downside and Rs 392.20 on the upside. The previous week’s trading range was Rs 35.2, with a closing price of Rs 335.50.

Indus Towers Dividend: The market has nearly wrapped up the Q3 results for December 2024. Several major companies have reported their quarterly results, with some showing profits and others losses. Among the listed companies, many have announced dividends for their eligible shareholders along with strong profits. Now, all eyes are on the upcoming Q4 results. Meanwhile, brokerage firm Citi has issued its rating for telecom company Indus Towers, suggesting the possibility of a dividend for eligible shareholders during the Q4 results. The brokerage has also provided its recommendation on whether to buy the stock.

Indus Towers Q3 Result:

The company recently reported a consolidated net profit of Rs 4,003 crore for the December 2024 quarter, reflecting a 159.9% year-on-year increase. This sharp growth was supported by strong collections from Vodafone Idea and consistent tower additions. Revenue from operations grew by 4.8% to Rs 7,547 crore, while EBITDA surged by 93.2% to Rs 6,997 crore. These strong financial figures reinforce Indus Towers’ position in the telecom sector.

Indus Towers Share Price Target 2025:

Citi has given a ‘Buy’ rating for Indus Towers, with a target price of Rs 490. The brokerage expects a positive growth outlook for the next 1-2 years, driven by new network rollouts from Vodafone Idea and Bharti Airtel.

The brokerage anticipates a 15% increase in tenancy growth for FY26 following the acquisition of 16,000 towers. Additionally, strong free cash flow (FCF) generation is expected to enable the company to pay dividends in Q4. Citi also highlighted the potential of EV charging as a large annuity-based B2B model, which could contribute to long-term revenue stability. These factors strengthen Citi’s confidence in Indus Towers’ growth prospects.

Indus Towers Stock Update:

Indus Towers shares have seen some positive movement, trading above Rs 337. The stock’s 52-week high was Rs 460.70, and its low was Rs 217. The current market cap is Rs 88,919.28 crore.