Shares of Indus Towers faced pressure following a downgrade by Jefferies from ‘Buy’ to ‘Underperform’ and a reduction in target price due to growing risks to growth, cash flows, and valuations. The brokerage lowered the target price on Indus Towers to Rs 375 from Rs 530, indicating a potential 14% decline from current levels. This downgrade reflects immediate uncertainties and structural challenges that could restrict the stock’s upside despite a stable operational environment.
Jefferies highlighted that the risk-reward scenario for the company has become less favorable, with limited earnings growth and dividend yield that may not offset emerging concerns. The brokerage revised its revenue and profit after tax estimates downward by 2–6%, forecasting a mere 3% growth in earnings per share and a 4% yield in the future. As a result of the downgrade, Indus Towers shares experienced a significant drop on the BSE, declining by up to 3.5% during intra-day trading to Rs 423 each.
Trading activity surged, with a substantial volume of nearly 0.95 million shares changing hands, well above the two-week average. Jefferies pointed out a key worry regarding the clustering of tower lease renewals in FY27, which could impact revenue visibility and growth. With a considerable number of Indus Towers’ sites up for renewal between the latter half of 2026 and the initial half of 2027, there is a heightened risk of pricing pressure during renegotiations.
