During the afternoon trade, the shares of Indus fell by 4.1% at RS 347.75 on the BSE.
“De Q1FY26 -resultaten van Indus Towers lagen iets onder onze schattingen, met huurinkomsten en EBITDA 1% lager dan verwacht, terwijl de onderhoudscapex hoger was. We zijn teleurgesteld door het besluit van de raad van bestuur om contant geld te behouden, het toeschrijven van het landschap van de ontwikkelende industrie, verhoogde capex en potentiële anorganische groeimogelijkheden,” zei BNP BNP in een rapport.
It added that the decision was ‘confusing’ because the additions of tower were set to moderate in FY26 and the problem of the claims has largely been resolved. The brokerage reduced its FY26-28th profit per share estimate by 2-3%, which states that “Indus will remain a low to moderate growth sector.”
On Thursday, Indus Towers reported a decrease of 9.8% on an annual basis in Q1 Net profit to RS 1,737 Crore, powered by higher electricity and fuel costs, employees’ expenses and repair and maintenance costs. Despite an RS 88 crore-writ-checking provisions, the fall came for doubtful claims from Vodafone Idea (VI), one of the most important customers.
The subsidiary of Bharti Airtel recorded an increase in the turnover of 9.1% on an annual basis of RS 8,058 Crore. The rental income grew by 10.1% JoJ but was 1% under the estimates of BNP. Organic tower additives delayed from 4,300 in Q4FY25 to 2,500 in Q1FY26, because the national expansion of Airtel is largely completed. However, management expects robust tower additives to continue by FY26. In the profit of the profit, Indus said that most of VI’s backlogs were collected in FY25, which contributed to a free cash flow of RS 1,570 Crore for the quarterly ending in June. Trade receivables fell with RS 406.4 Crore during the quarterly from June to RS 4,361.1 Crore, after the repayment of VIs RS 88 Crore in Q1FY26, said CEO Prachur Sah.
The decision of the board to save cash was powered by the developing landscape, customer stability, increased capex and potential inorganic growth opportunities, Sah noted. He clarified that the decision is not a change in the dividend policy, but a short -term measure.
“The policy requires that the board regards pre -defined parameters, including the future cash requirements of the company before the free money is distributed,” Sah said. He added that free cash flows that are generated in the previous and current tax years will be available for dividend payments as soon as the benefits resume.
The company mentioned its increased Capex as an important reason to retain cash, with funds assigned to the growth of the tower, infrastructure replacement and lease.
Indus reported MaintenanceCapex of RS 1.190 Crore in the first half of calendar 2025, almost correspond to the Capex for the entire 2024. In addition to torent addictions, investments are expected in sun places, battery upgrades to Lithium-ion and more diesel generators.
“These are upgrades that Capex run, but do not always increase the number of tower,” said Sah, adding that MaintenanceCapex will probably remain high for the next 3-4 years, because the aging infrastructure will be upgraded.
(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
#Indus #Towers #shares #falling #BNP #calls #cash #moving #movement #confusing