Indus Towers top gainer in NIFTY Midcap 100 index after Q2 earnings; Here is what top investment firms say

Shares of telecom infrastructure provider, Indus Towers, rose as much as 3.5% to hit an intraday high of ₹384.30 on the National Stock Exchange. On the BSE, Indus Towers shares advanced as much as 3.47% and the stock emerged at the top gainer in the NIFTY Midcap 100 index.

The sharp surge in the stock price came after the company post market hours on Monday announced its September quarter earnings. The Telecom infrastructure firm posted a 17% decline in consolidated net profit to ₹1,839 crore in the second quarter ended September 30, 2025, due to pending dues from one of the large clients, according to the company filing.

Indus Towers during the reported quarter had a writeback of ₹195 crore in provision for doubtful receivables, aided by collections against past overdue.

The company had posted a net profit of ₹2,223.5 crore in the same period a year ago.

"A large customer of the Group accounts for a significant part of revenue from operations for the quarter and half year ended September 30, 2025 and constitutes a significant part of outstanding trade receivables and unbilled revenue as at September 30, 2025," Indus Towers said in its filing without naming Vodafone Idea.

The filing said that the "customer" has expressed its ability to settle liabilities and is dependent on support from the Department of Telecommunications (DoT) regarding the AGR matter, fund raise through equity and debt, and generation of cash flow from operations..

"The customer is paying an amount equivalent to the monthly billing to the Group. The Group continues to recognise revenue from operations relating to the customer for the services rendered; however, the Group does not recognise revenue equalisation asset on account of straight lining of lease rentals considering the customer's financial condition," Indus Towers said.

The company, however, registered about a 6 per cent increase in profit on a quarterly basis.

“Our sharp focus on cost efficiency has been contributing to steady improvement in our profitability. The quarter also marked the announcement of our plan to foray into Africa, a strategic step towards supplementing our long-term growth by extending Indus Towers’ proven execution capabilities to new high-potential markets," Indus Towers, MD and CEO, Prachur Sah said.

Here is what global investment firms say on Indus Towers Q2 earnings

Global brokerage firms UBS and CLSA have maintained a positive stance on Indus Towers after the telecom infrastructure provider reported broadly in-line earnings for the September quarter (Q2FY26), supported by steady tower additions and improving rental metrics.

UBS said Indus Towers’ earnings were broadly in line with its estimates, as the company added 4,300 towers during the quarter—up from 2,500 in Q1FY26 and within its historical range of 4,000–8,000 towers, excluding Q4 when towers were acquired from Bharti. The company ended the quarter with a total of 256,100 towers.

The overall tenancy ratio slipped slightly to 1.62 times, compared with 1.63 times in Q1FY26 and 1.65 times in Q2FY25, reflecting minor consolidation effects. However, rental metrics improved sequentially — average rental per tower rose 1.3% QoQ to ₹67,900, while average rental per tenant increased 1.4% QoQ to ₹41,700, UBS noted.

CLSA noted that Indus Towers reported core revenue of ₹5,240 crore, up 11% YoY and 3% QoQ, beating estimates. Reported EBITDA stood at ₹4,600 crore, down 6% YoY but up 5% QoQ; when adjusted for collections of past overdue payments, EBITDA grew 15% YoY and 3% QoQ, ahead of forecasts.

While tenancy additions came in at 4,505, slightly below expectations, CLSA pointed out that the overall base grew 10% YoY and 1% QoQ, indicating steady network expansion by telecom operators.

The brokerage also noted that the company’s balance sheet remains strong, with net cash of ₹29.6 billion and lease liabilities at 118% of debt. Investors now await the reinstatement of the board’s dividend.

As of 9:47 am, Indus Towers shares traded 2.92% higher at ₹382.20, outperforming the NIFTY Midcap 100 index which was up trading on a flat note.