Indus Towers’ Africa foray on track, operations to start in September quarter

What the report says

The Economic Times reported that Indus Towers plans to begin its Africa operations in the September quarter after receiving regulatory approvals and operating licences in Namibia, Zambia and Uganda. The passive telecom infrastructure company’s management said the overseas push is on schedule and described Africa as its biggest growth avenue beyond its main India business.

Managing director and chief executive Prachur Sah told analysts that Indus has orders from an anchor customer, identified in the report as likely Airtel Africa, and has already moved ahead with supplier orders and partner onboarding. Management said having an initial tenant in place should help the company start faster, while a second tenant on towers would improve operating leverage. Commercial documents, including master service agreements and rate cards, are still being finalised.

The report said Indus expects early Africa capital spending over the next one to two years to be moderate compared with India and largely funded through debt, limiting the expected effect on India free cash flow. Sah also indicated the board is looking at a steady, progressive dividend approach, supported by company cash generation.

The expansion comes as Indus continues to see demand in India from data growth and 5G network densification. The company reported adding 3,100 macro towers and 4,200 co-locations in the June quarter, and said it has a strong order book for the next three to four quarters. The move matters because it could diversify Indus Towers’ revenue base while keeping its core India rollout active.