The brokerage referred to the structural data growth and improving prospects for Vodafone Idea as key drivers, citing that stabilisation at Vi could unlock tenancy growth for Indus Towers and help narrow its valuation gap with global peers.
It also flagged dividend resumption as a potential re-rating trigger, estimating a payout of ₹19 per share in FY26, translating into a yield of around 4.7% at current levels.The positive initiation comes in contrast to a recent downgrade by Jefferies, which cut the stock to ‘Underperform’ from ‘Buy’ and slashed its price target to ₹375 from ₹530.
The brokerage had raised concerns around a cluster of site renewals due in the second half of CY26 and the first half of CY27, as well as elevated capital expenditure, which could weigh on earnings growth, free cash flow and future payouts.
Street opinion on the stock remains divided. Out of 24 analysts covering Indus Towers, 11 have a ‘Buy’ rating, six recommend ‘Hold’, and seven have a ‘Sell’ call.
The stock was last trading 0.59% higher at ₹416.40 and is down over 4% so far this year.
