Revenue rose 4.1% sequentially and 4.6% year-on-year to ₹8,431 crore, driven by continued growth in the company’s tower portfolio.
EBITDA margin contracted to 53.6% from 55.1% in the March quarter, primarily due to higher provisions for doubtful debts, which increased to ₹23.3 crore from ₹15.3 crore in the previous quarter, along with elevated power costs.
Net profit declined 2.6% sequentially to ₹1,745.8 crore, compared with ₹1,792.9 crore in the preceding quarter.
Operationally, tower additions slowed during the quarter. The company added 3,097 towers in Q1FY27, lower than the 4,892 towers added in the March quarter.
How brokerages reacted to Indus Towers’ Q1
Nomura on Indus Towers
Buy | Target price: ₹505
Nomura said Indus Towers reported a steady first quarter, with rental revenue rising 1% sequentially and 5% year-on-year, slightly ahead of its estimates. Rental revenue per tenant remained flat sequentially at ₹41,082 per month.
The brokerage said that net tenancy additions slowed to 4,236 during the quarter from 6,192 in Q4FY26. Excluding provisions, EBITDA increased 1% sequentially to ₹45.4 billion, supported by tenancy additions, higher revenue per tenant and lower operating expenses. However, these gains were partly offset by higher energy losses.
Nomura also highlighted lower capital expenditure during the quarter, which led to a 67% sequential increase in operating free cash flow to ₹17.8 billion, calling it a positive for the company.
CLSA on Indus Towers
High Conviction Outperform | Target price: ₹565
CLSA said Indus Towers delivered 5% year-on-year and 1% sequential growth in core revenue during Q1FY27, while core adjusted EBITDA rose 6% YoY and 2% QoQ.
The brokerage said that net tenancy additions of 4,236 and tower additions of 3,097 were weaker than the previous quarter due to supply chain disruptions arising from geopolitical developments. It also cited delays in Vodafone Idea’s fundraising as another headwind.
As a result, CLSA lowered its FY27-FY29 revenue and earnings estimates by 1%-7%, although it continues to expect a 9% core EBITDA CAGR through FY29.
The brokerage also pointed out that capital expenditure declined 26% sequentially to ₹17.2 billion, while free cash flow increased 31% to ₹14.4 billion. Indus Towers ended the quarter with a net cash position of ₹64 billion.
JPMorgan on Indus Towers
Neutral | Target price: ₹390
JPMorgan said Indus Towers’ first-quarter results were broadly in line with expectations.
Revenue increased 4% sequentially and 5% year-on-year, modestly ahead of both consensus and the brokerage’s estimates. Rental revenue grew 1% QoQ and 5% YoY, while energy revenue rose 10% sequentially and 4% annually.
EBITDA increased 1% sequentially and 3% year-on-year, broadly matching consensus estimates and coming in slightly ahead of JPMorgan’s projections. Adjusted EBITDA, after accounting for lease rentals, grew 3%.
The brokerage mentioned that EBITDA growth lagged revenue growth due to higher power and fuel costs, which compressed EBITDA margins by 140 basis points sequentially to 53.7%.
Indus Towers shares ended 2.3% lower at ₹385.50 on Monday. The stock has declined about 12% so far in 2026.
