Bharti Airtel Gets CCI Nod to Raise Stake in Indus Towers

Bharti Airtel’s holding in Indus Towers will rise to 50.05 per cent from its current 50 per cent.

The Competition Commission of India (CCI) has approved Bharti Airtel’s proposal to increase its stake in Indus Towers, following a share buyback by the telecom infrastructure company. Bharti Airtel’s holding in Indus Towers will rise to 50.005 per cent from its current 50 per cent. The buyback, which began on August 14, involves the purchase of over 5.67 crore shares at Rs 465 each, representing approximately 2.107 per cent of the total equity.

Q2FY25 Financial Performance

Indus Towers reported a 71.7 per cent year-on-year (YoY) growth in consolidated net profit, reaching Rs 2,224 crore for the fiscal second quarter (Q2FY25). This strong performance was driven by a write-back of Rs 1,077 crore in provisions for doubtful receivables, supported by collections from overdue accounts.

The company’s consolidated revenue for the quarter stood at Rs 7,465 crore, a 4.7 per cent increase compared to the same period last year. Additionally, consolidated EBITDA surged by 42 per cent YoY to Rs 4,907 crore.

Operational Highlights

Indus Towers added 3,748 new towers in Q2FY25, bringing its total to 229,658 towers across 22 telecom circles in India. Co-locations, which involve hosting multiple carriers' equipment on a single tower, also grew, with 4,308 additions during the quarter, resulting in a total of 379,236 co-locations.

Stock Performance

Despite the regulatory approval, shares of Indus Towers dropped by 2.52 per cent on Wednesday, closing at Rs 357.50. However, the stock has delivered robust returns in 2024, rising by 76 per cent year-to-date and delivering 101 per cent returns over the past year.

Disclaimer: The article is for informational purposes only and not investment advice.