Indus Towers Share Price: Nomura says selloff is overdone; sees 30% upside

Shares of Indus Towers Ltd. will be in focus on Thursday, July 9, after brokerage firm Nomura reiterated its 'Buy' rating on the stock and maintained a price target of ₹505 per share.

The target implies an upside of nearly 30% from Wednesday's closing price of ₹390.

Indus Towers has corrected sharply in recent months amid investor concerns over the renewal of telecom tower tenancy agreements with Reliance Jio. The stock is currently trading about 19% below its 52-week high of ₹481.50, touched on February 19, and is down 11% so far in 2026.

However, Nomura believes the recent correction has been excessive and sees value in the stock even under a worst-case scenario where Indus were to lose all of Jio's tower tenancies.

The brokerage's base case assumes there will be no significant disruption to Jio's existing tenancy arrangements for several reasons.

First, it believes shifting to single-tenant towers may not make economic sense, particularly in densely populated urban markets where Jio currently leases towers from Indus.

Second, Bharti Airtel, the promoter of Indus Towers, is also a key tenant of Altius, an unlisted tower company. Nomura believes this could strengthen Airtel's negotiating position in discussions with Jio.

Finally, relocating telecom equipment from nearly 50,000 Indus towers and reconnecting replacement sites to fibre infrastructure would be a complex and costly exercise, making such a transition commercially unattractive.

Nomura also said any additional share purchases by Bharti Airtel could provide support to the stock.

From a valuation perspective, the brokerage said that Indus Towers trades at 6.1 times FY28 estimated EV/EBITDA, which it considers inexpensive relative to the company's fundamentals.

According to Bloomberg data, 25 analysts currently cover the stock. Of these, 12 recommend a 'Buy', five have a 'Hold' rating, while eight maintain a 'Sell' recommendation.

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