However, the announcement did not include any proposal for dividend or share buyback, which weighed on investor sentiment.

The company has not declared a dividend for the past three years. Its last dividend was an interim payout of Rs 11 per share in May 2022. It also has not announced any buyback since August 2024, when it repurchased shares worth Rs 2,640 crore at Rs 465 per share through a tender offer.

Investor caution has also been influenced by a recent downgrade by a foreign brokerage, which assigned an 'Underperform' rating with a target price of Rs 375. The brokerage cited risks from a large wave of tower contract renewals over H2CY26 and H1CY27, potential pricing pressure, and elevated capital expenditure.

It also flagged slower industry growth and reduced tower additions, which could intensify competition and weaken bargaining power during contract renewals. The brokerage expects modest earnings growth, weaker cash flows and lower dividend payouts, limiting upside potential for the stock.

Indus Towers is India's leading provider of passive telecom infrastructure and it deploys, owns and manages telecom towers and communication structures, for various mobile operators. The company's portfolio of 259,622 telecom towers makes it one of the largest tower infrastructure providers in the country with presence in all 22 telecom circles. Indus Towers caters to all wireless telecommunication service providers in India.

On a consolidated basis, Indus Towers' net profit declined 55.64% to Rs 1775.90 crore while net sales rose 7.94% to Rs 8146.30 crore in Q3 December 2025 over Q3 December 2024.