In Short:
Indus Towers in Kolkata is expecting strong growth in business in FY25 with the expansion plans of its top two telco customers, Bharti Airtel and Vodafone Idea. The company has raised a significant amount of funds and is set to add more towers to cater to the expansion. Analysts predict a 9.7% growth in cash Ebitda annually through FY24-FY27. Vi’s debt raise may also help Indus recover old dues.
Indus Towers Foresees Strong Growth in Tower Additions and Business prospects
Kolkata: Indus Towers’ leadership anticipates significant tower additions and business growth opportunities in FY25, driven by the expansion plans of its top two telecom customers – Bharti Airtel and Vodafone Idea.
Expansion Plans
According to a recent meeting with ICICI Securities, Indus Towers stands to benefit from Bharti Airtel’s rural mobile broadband push and Vodafone Idea’s upcoming 4G and 5G expansion in key markets.
Vodafone Idea is expected to roll out over 60,000 tenancies, while Airtel plans to add 25,000 sites, primarily focusing on rural areas.
Indus management views these expansion plans as a lucrative revenue opportunity for the company.
Network Advantage
Indus has a pan-India tower portfolio and a strong execution track record, positioning it well to support the growth plans of its telecom clients.
The company has also completed network expansion for Airtel and is in discussions with Vi to leverage its network footprint.
Market Outlook
ICICI Securities projects a 9.7% annual growth in cash Ebitda for Indus through FY24-FY27.
Jefferies and JP Morgan anticipate continued tower additions and elevated capex levels for Indus in the coming years, driven by telecom network expansions.
Vi’s Financial Moves
Vodafone Idea’s recent debt-raising efforts aim to enhance its capex capabilities and compete effectively in the market.
Analysts expect Indus to benefit from Vi’s improved financial position to recover old dues and strengthen its business.
Indus Towers’ stock price rose by 1.65% to Rs 403 on the BSE on Tuesday.
