Shares of Indus Towers Ltd fell 5 per cent in Wednesday’s trade after the company’s board cleared plans to enter African markets, starting with Nigeria, Uganda, and Zambia.
Indus Towers stock slipped 5 per cent to touch the day’s low of Rs 312.60 on the BSE, over its previous close of Rs 329.30. At 11:37 am, Indus Towers shares were down 3.49 per cent at Rs 317.80. The counter has declined 13 per cent in the past three months. The scrip is 28 per cent below its 52-week high of Rs 444.45.
In a filing with the exchanges on Tuesday, after market hours, Indus Towers said its Board of Directors “reviewed and deliberated on strategic opportunities to expand the Company’s footprint across select international markets.” The company noted that these markets offer “attractive prospects for revenue diversification, operational scalability, and long-term value creation”
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Indus Towers said that it will leverage its strong financial position and anchor customer relationship with Bharti Airtel to build a competitive presence in Africa. “As part of its broader growth strategy, the Company will continue to evaluate expansion opportunities in other African markets where Airtel has an established presence,” it said.
Prachur Sah, Managing Director & CEO of Indus Towers, said, “The Board’s approval to enter international markets in Africa unlocks our vision for long-term sustainable growth and value creation for our shareholders. By leveraging our expertise in delivering innovative and cost-effective solutions, we are well-positioned to differentiate ourselves in Africa’s fast-growing telecom market and emerge as the preferred tower company.”
The company also said the move aligns with the Government of India’s vision of encouraging Indian enterprises to expand globally and evolve into multinational entities.
Brokerage Emkay Global viewed the Africa plan as an unfavourable capital allocation, citing persistent currency depreciation and challenges in dividend upstreaming from African markets—key risks that have kept African tower companies (like telecom peers) trading at a discount to global comparables.
Emkay maintained a BUY on Indus Towers given attractive valuations (FY26E EV/EBITDA: 6.3x) and strong cash flow yield (FY26E: 7.0 per cent). The brokerage said it awaits clarity on the quantum and timing of the Africa foray before revisiting its stance and may consider a downgrade if capital deployment into the Africa business turns significant.
Axis Securities said the stock plummeted, closing below the previous month’s low, amid corporate announcements and risk aversion. According to the brokerage, the board’s decision to suspend dividend distribution to conserve cash, even as the company looks to grow and expand its network, dented investor sentiment. Derivatives data indicated short additions: the stock price declined ~3 per cent with futures open interest up 3.1 per cent to 48,843 contracts (1,447 added). In options, total call OI was 11,015 (2,169 added) versus put OI of 7,097 (866 added). Axis said the heavier call additions despite a price fall suggest traders are selling calls to hedge or to position for further downside, while relatively muted put activity points to fewer bets on a sharp slide.
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