Indus Towers Share Price in Focus as Nomura Maintains Buy Rating With Target Price of Rs 505 Per Share

The Indus Towers share price is in focus today after Nomura maintained its ‘buy’ rating on the Indus Towers share price with a target price of Rs 505 per share. The brokerage’s note argues that the stock’s recent sharp correction, driven by concerns over Reliance Jio’s tower tenancy renewals, looks overdone. The stock was quoting around Rs 393.55, up 1.13 percent.

Click Here – Get Free Investment Predictions

Nomura’s Key Takeaways on the Indus Towers Share Price

The table below summarises Nomura’s key points on the Indus Towers share price.

#	Key Point
1	Sees sharp correction as overdone amid Jio tenancy renewal concerns
2	Finds value even if Indus loses all Jio tenancies
3	Expects no major disruption in Jio’s tower tenancies
4	Shifting to single-tenant towers may be economically unviable
5	Bharti’s presence in Altius strengthens its negotiating position
6	Tower migration and fibre reconnection would be costly and complex
7	Bharti’s stake purchases could support the stock
8	Stock trades at an attractive 6.1x FY28 EV/EBITDA

Get Telecom Infrastructure Sector Views from SEBI Registered Investment Advisors

Understanding the Jio Tenancy Concern Behind the Indus Towers Share Price Correction

The core worry that has weighed on the Indus Towers share price in recent sessions centres on Reliance Jio’s tower tenancies. As one of Indus Towers’ largest tenants, any reduction in the number of towers Jio leases from the company would directly reduce rental revenue, and market speculation around potential renewal risk has been enough to trigger a sharp sell-off in the stock. Nomura’s note pushes back against this narrative, arguing that even in a worst case scenario where Indus Towers were to lose all of Jio’s tenancies, the stock would still offer value at current levels, a framing designed to establish a floor for the bear case on the Indus Towers share price rather than simply dismissing the risk outright.

Why Nomura Expects Limited Disruption

Nomura’s central argument is that a wholesale shift away from Indus Towers’ shared infrastructure model would be economically unviable for Jio. The brokerage notes that migrating to single-tenant towers, along with the associated fibre reconnection required across a large network footprint, would be both costly and operationally complex, making continued reliance on existing shared tower infrastructure the more practical and cost-effective path for Jio. This economic logic underpins Nomura’s view that major disruption to Jio’s tower tenancies is unlikely, even as the market has priced in elevated uncertainty around the relationship.

Bharti Airtel’s Role as a Supportive Factor for the Indus Towers Share Price

Nomura also highlights Bharti Airtel’s presence within Indus Towers’ ownership structure, noting that this strengthens the company’s negotiating position with tenants and that Bharti’s own stake purchases in Indus Towers could provide further support to the Indus Towers share price. Bharti Airtel is both a significant shareholder in Indus Towers and one of its major tenants, a dual relationship that gives it a vested interest in the Indus Towers share price and negotiating leverage that can work in Indus Towers’ favour during any tenancy discussions with other operators, including Jio.

Valuation Support for the Indus Towers Share Price at Current Levels

Nomura flags that Indus Towers currently trades at 6.1 times FY28 EV/EBITDA, a multiple the brokerage considers attractive relative to the company’s underlying cash flow generation and infrastructure asset base. This valuation argument for the Indus Towers share price, combined with the fundamental case around tenancy stability, forms the basis for Nomura’s continued buy rating and Rs 505 target price, which implies meaningful potential upside for the Indus Towers share price from current trading levels around Rs 393 to Rs 395.

Download the Univest iOS App or Univest Android App to track the Indus Towers share price and telecom tower sector updates live.

Conclusion

Nomura’s maintained buy rating and Rs 505 target on the Indus Towers share price reflects a contrarian view that the market has overreacted to Jio tenancy renewal concerns, with the brokerage citing both an attractive valuation and structural reasons why a major disruption to tower tenancies appears unlikely. Investors tracking the Indus Towers share price should watch for any concrete developments on tenancy renewals in the coming quarters to assess whether this bullish thesis plays out.

Frequently Asked Questions FAQs

What is Nomura’s current rating on Indus Towers?

Ans. Nomura has maintained a ‘buy’ rating on Indus Towers with a target price of Rs 505 per share, arguing that the stock’s recent sharp correction driven by Jio tenancy renewal concerns appears overdone.

What are the Jio tenancy concerns affecting Indus Towers?

Ans. Investor concern has centred on whether Reliance Jio, a major tower tenant, might reduce or not renew some of its tower tenancies with Indus Towers, which would reduce the company’s rental revenue given Jio’s significant contribution to the tower company’s overall tenancy base.

Why does Nomura believe the Indus Towers correction is overdone?

Ans. Nomura’s note argues that even in a worst case scenario where Indus Towers were to lose all Jio tenancies, the stock would still offer value at current levels, and the brokerage expects no major disruption in Jio’s tower tenancies given the significant costs and complexity involved in migrating to alternative tower infrastructure.

What was the Indus Towers share price today?

Ans. Indus Towers was quoting around Rs 393.55 to Rs 395.20, up between 1.13 and 1.71 percent, having touched an intraday high of Rs 398.60 to Rs 398.70 and a low near Rs 391.10 to Rs 391.85.

Why would shifting to single-tenant towers be uneconomical for Jio?

Ans. Nomura’s note points out that shifting away from shared multi-tenant towers to single-tenant infrastructure would likely be economically unviable for Jio, since tower migration and fibre reconnection across a large network would be costly and operationally complex, making continued reliance on Indus Towers’ existing infrastructure the more practical option.

What valuation support does Nomura see for Indus Towers?

Ans. Nomura notes that Indus Towers currently trades at an attractive 6.1 times FY28 EV/EBITDA multiple, and also flags that Bharti Airtel’s stake purchases in the company could provide further support to the stock, alongside Bharti’s presence in Indus’s ownership structure strengthening its negotiating position with tenants.