Mumbai, April 15: Indus Towers faced pressure on its shares during Wednesday’s trading session as brokerage firm Jefferies downgraded the stock rating from ‘Buy’ to ‘Underperform’ and also reduced the target price.
Jefferies has lowered the target price for Indus Towers from ₹530 to ₹375, indicating a potential decline of approximately 14% from current levels.
The downgrade reflects increasing risks related to the company’s growth, cash flow, and valuation. According to Jefferies, while the operating environment remains stable, uncertainties and structural pressures may limit the stock’s upside in the near term.
The brokerage noted that the balance of risk and return for the company is no longer as attractive, as modest earnings growth and dividend yield fail to alleviate these concerns.
Jefferies has cut its revenue and profit (PAT) estimates by 2% to 6%, projecting only 3% EPS growth and about 4% yield going forward.
Following the downgrade, Indus Towers’ shares fell in the stock market, with the stock dropping nearly 4% to a low of ₹420.50 during intraday trading on the NSE. As of the time of writing (around 2:40 PM), the company’s shares were trading at ₹421.35, down 3.9%. The stock opened at ₹434.50 and reached a high of ₹436.90 earlier in the day.
A significant concern for the company is the upcoming renewal of a large number of tower leases in fiscal year 2027, which could impact revenue and growth. Many of the company’s tower sites are set to renew between the second half of 2026 and the first half of 2027, potentially putting pressure on prices.
Jefferies also warned that the slowdown in adding new towers in the telecom sector could increase competition for renewals. This may force the company to offer larger discounts or risk losing customers. Additionally, if the company provides discounts to one telecom operator, it may have to extend similar discounts to others, such as Vodafone Idea and Bharti Airtel, which could affect overall income.
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