Indus Towers will be a 'key beneficiary' of Vodafone Idea relief; CLSA projects 32% upside

Shares of Indus Towers Ltd. gained as much as 4% in Wednesday's session, January 9, after brokerage firm CLSA reiterated its 'High Conviction Outperform' rating on the stock.

The brokerage has maintained a price target of ₹565, implying a potential upside of 32% from the previous session's closing price.

According to CLSA, Indus Towers is a key beneficiary of Vodafone Idea's relief on adjusted gross revenue (AGR) dues as well as its ongoing fund-raising efforts.

The company's portfolio of 256,074 towers thrive on Bharti Airtel and Vodafone Idea as anchor tenants.

The brokerage mentioned that Bharti Airtel continues to ramp-up its 5G rollout, with the number of towers and sites rising by 13,000 and 76,000, respectively, over the past 12 months, taking the totals to 342,000 towers and 1.15 million sites.

Meanwhile, since its equity fund-raising over the past 18 months, Vodafone Idea has added around 110,000 sites and 21,000 unique broadband towers.

CLSA expects incremental tenancies from dual tenants to reach 68,000 by FY28. It added that Vodafone Idea's fund-raising could further support Indus Towers' core revenue and EBITDA growth of 10-11% on a compound annual basis.

The brokerage also mentioned that Indus has a net cash balance sheet and said a dividend reinstatement by the tower company is likely.

Of the 23 analysts who have coverage on Indus Towers, 13 have a 'Buy' rating, four have a 'Hold' rating and six have a 'Sell' rating.

Shares of Indus Towers are currently trading 3.51% higher on Wednesday at ₹442.90. The stock is up 4% so far in 2026.