VI’s contribution results in RS 1,570 Crore Free Cash flow for Indus Towers in June quarter

Indus Towers has said that most backlogs of Vodafone’s idea were collected in FY25, which has partly resulted in generating a free cash flow of RS 1,570 crore in the quarterly ending in June. But the passive telecom infrastructure company has decided to save cash for the short term.

With the cash Telco, which cleans up the majority of his earlier overflow to Indus, the trade claims fell with RS 406.4 Crore during the quarterly from June to RS 4361.1 Crore, after the Telco RS 88 Crore in Q1 FY26, Indus Towers CEO Sah had paid back during a profit voucher.

“We have collected the most Backlog benefits. As part of our cash management, we have rather than to keep the cash inactive, or reduced or used our debt for a very strategic acquisition,” Sah said.

However, the Indus board has considered retaining cash in the short term. This decision was taken, taking into account various contextual factors, including the evolving industrial landscape, the stability of their customers, the increased capital expenditure (Capex) for the company and inorganic growth opportunities, Sah said.

The Auditors of Vodafone Idea have reported material uncertainty in the results of the quarter of March, and added that the ability of VI to regulate its obligations depends on the support of the Ministry of Telecommunications with regard to the adapted gross income (AGR) facilities, fund rise and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts and debts are.

“The board will continue to follow the evolving situation up close and re -assess its decision by the end of the financial year. Future cash requirement of the company before the free money is distributed,” said Sah, adding that the free cash flow that is being generated in the previous and current tax years will be available for dividend payment.

The company mentioned increased Capex as a reason to retain money in the short term., It adds that Capex will be allocated for further growth in its tower activities, replacing aging infrastructure and preparing its towers on a higher rent.

Indus reported MaintenanceCapex of RS 1190 Crore in the first half of calendar year 2025, which is almost the same as the Capex of the company for the whole of 2024.

In addition to tower additives, the company expects investments in solar stands, replacing and upgrading batteries to Lithium-Ion and adding more diesel generators.

“These are upgrades that Capex run up, but not always add to the tower count,” Sah said, adding that the maintenancecapex is expected to be increased for the next 3-4 years because it will continue to upgrade its aging infrastructure.

Indus Towers said that the total number of 5G base stations in the quarter of June marginal rose to 487,000, which adds that while 5G deployment momentum is delayed, the contributions remain a meaningful motivation for income.

As the acceptance of 5G becomes deeper, there is an expectation for a natural increase in the demand for extra sites to relieve network congestion. Indus said that the rolls of the first quarter were also struck seasonally and will appear as rolls out in the following quarters.