INDUS TOWERS

Indus Towers

Indus Towers is India’s largest telecom tower company formed by the merger of Bharti Infratel and Indus. It provides passive telecom infrastructure (like towers and fiber) to telecom operators—effectively monetizing the backbone of India’s mobile network.

Business Model

Its business model is built on long-term contracts, annuity-type revenue, and low customer churn—creating a stable, cash-rich business. However, its fate is tightly linked with the health of the telecom sector, especially its largest customer—Vodafone Idea.

Risks and Challenges

A major risk in Indus is the financial stress of Vi, which has been delaying payments, creating provisioning and working capital issues. The company’s revenue concentration risk is real, and any material default could impact its credit profile.

Future Outlook

With 5G rollout underway and increasing data demand, tower tenancy is expected to rise. But to fully capture the opportunity, Indus must diversify clients, reduce receivables, and explore new business lines like small cell infrastructure and fiber monetization.