Indus Towers share price tanks 7% post Q4 results. What should investors do now?

Indus Towers share price: Shares of telecom infrastructure firm Indus Towers cracked over 7% on Friday, May 2, following the announcement of the January-March quarter results, wherein the company posted a nearly 4% fall in consolidated profit after tax.

Indus Towers' Q4 profit after tax stood at ₹1,779 crore, down 4% year-on-year from ₹1,853 crore posted in the corresponding quarter last year. Meanwhile, the company's revenue from operations witnessed a 7.4% YoY uptick to ₹7,727 crore, as against ₹7,193 crore posted in the same period a year ago,

Its consolidated earnings before interest, tax, depreciation and amortisation stood at ₹4,395 during the quarter under review, up 7.1% YoY.

Moreover, the investors were keenly eyeing the announcements on Indus Towers' dividend, bonus share issue and buyback along with the Q4 results. However, the board deferred its decision.

"Board considered various avenues of enhancing returns to its shareholders, including buy back, bonus by way of shares and/or debentures or dividend. After detailed deliberations, the Board decided to constitute a Committee to comprehensively evaluate all options/dimensions and make a suitable recommendation to the Board for a final decision," said Indus Towers.

For the full financial year 2024-25 (FY25), the consolidated revenue rose 5.3% YoY to ₹30,123 crore while profit surged 65% YoY to ₹9932 crore. EBITDA stood at ₹20,845 crore, a jump of 41.9%.

Indus Towers share price trend

Indus Towers share price slipped 7% to the day's low of ₹378.80 following the Q4 results announcement post-market hours on Wednesday, April 30. Given the stock market holiday on May 1, the stock reacted to the earnings today.

However, despite today's fall, Indus Tower share price has gained 11.08% in the last one year and 150% in the last two years.

As of 10.10 am, Indus Towers' share price was down 4% at ₹391.60 on the BSE.

“Indus Towers stock opened with a gap down and continued to witness selling pressure in the initial minutes. A mild bounce is observed from the 380 level, which now acts as a crucial support since it aligns with the Super Trend indicator on the daily chart,” said Rajesh Bhosale, Technical Analyst, Angel One.

A breakdown below 380 could lead to further downside towards 360, he observed. “On the upside, the bearish gap near 400 and the recent swing high at 415 serve as immediate resistance levels. A sustained move above 415 would signal a resumption of the primary uptrend,” Bhosale added.

How to trade Indus Tower shares?

Fundamental View

ICICI Securities said Indus Towers’ Q4FY25 performance was good, led by excluding acquisition, tenancy addition of 8.2k, which was much better than tower net adds of 4.3k, implying a rising tenancy sharing ratio. Tenancy adds benefitted from the network rollout by VIL, and strong FCF in FY25, including provision reversals.

Indus has also seen a rise in rental/tenants, reflecting the benefit of rising 5G loading, but it may see a dip as tenancy sharing rises with VIL’s rollout, the brokerage added.

"We have baked in a dominant incremental tenancy share for Indus in the VIL rollout. We would watch Indus’ efforts to build new businesses that can help grow earnings slightly faster. We increase EPS by 3–4% (FY26E–27E), baking in the Bharti Airtel towers acquisition," ICICI Securities added. While the brokerage raised the target price to ₹350 from ₹335 earlier, it maintained its 'REDUCE' rating.

Technical View

Anshul Jain, Head of Research at Lakshmishree Investments, said Indus Towers broke out of a bullish 89-day rectangle at 375 and rallied towards 410. However, Jain said this base lacked institutional participation, and the breakout wasn’t backed by above-average volumes.

“The current correction appears to be a retest of the 375 breakout level. With no institutional volume support, there’s a high chance the retest might fail, pushing the stock back to its base low of 315. Only a strong defence and breakout above 395 will revive bullish momentum," Jain added.

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