A leading telecom infrastructure company has achieved a significant legal victory with the Hon’ble Supreme Court ruling in its favor. The court granted the company the right to avail itself of CENVAT credit, a pivotal decision that highlights its commitment to financial prudence and regulatory compliance.
This landmark ruling brings substantial financial relief, reducing contingent liabilities by ₹3,704.4 crore. It also resolves previous inconsistencies in judgments, offering much-needed clarity and stability for the company’s future operations.
The decision is expected to strengthen the company’s financial position, boosting investor confidence and supporting its growth strategy in the competitive telecom industry.
Share Price Movement
The share price of Indus Towers Limited went up by 1.26 percent to Rs. 332.3 per share on Thursday, an increase from its previous close of Rs. 328.15 per share. The market capitalisation now stands at approximately Rs. 87,679 crore as of November 21, 2024.
What Happened
The Supreme Court’s ruling in favor of Indus Towers allows the company to claim CENVAT credit, reducing its contingent liabilities by ₹3,704.4 crore. This financially benefits Indus Towers by improving its balance sheet and resolving prior legal disputes, strengthening the company’s overall position.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Indus Tower’s consolidated revenue from operations has increased by 4.67 percent YOY from Rs. 7,132 crore in Q2 FY24 to Rs. 7,465 crore in Q2 FY25 and increased by 1.11 percent QoQ from Rs. 7,383 crore in Q4 FY24.
The company’s consolidated net profit has increased by 71.73 percent, from Rs. 1,295 crore in Q2 FY24 to Rs. 2,224 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has increased by 15.4 percent QoQ from Rs. 1,926 crore.
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Market Outlook
The telecom industry in India is experiencing strong growth, with a subscriber base of 1.2 Bn as of August 2024. The industry is driven by affordable tariffs, wider availability, and the government’s initiatives to bolster domestic manufacturing capacity. The industry has also seen a rapid increase in internet subscribers, with 42% belonging to rural areas. The government’s auction of IMT/5G spectrum for 5G deployment further enhances the industry’s growth potential. Overall, the telecom sector in India is the fourth-largest in terms of FDI inflows and a significant contributor to employment, making it an industry with a promising outlook.
Shareholding Pattern
As of the November 2024 shareholding pattern, Indus Towers Limited is primarily held by the promoters at 53.01 percent, foreign institutional investors hold 24.19 percent, and the public with 5.81 percent.
About Company
Indus Towers Limited, established in November 2007, stands as a leading telecommunications infrastructure provider in India. Headquartered in Gurugram, Haryana, the company supports mobile network operators by offering shared passive infrastructure services. With over 229,658 towers and approximately 379,236 co-locations, Indus Towers ensures seamless connectivity across all 22 telecom circles in India, enabling cost-effective operations for its clients.
The company’s shared infrastructure model allows multiple operators to use the same tower, reducing costs and enhancing network coverage. Its major shareholders include Bharti Airtel, Vodafone Group , and public investors. Indus Towers continues to innovate by scaling its infrastructure to meet the rising demand for connectivity, especially with the rollout of 5G technology.
Indus Towers has earned accolades for operational excellence and sustainability, such as the Mahatma Award for CSR Excellence. Despite industry challenges, it remains a vital player in India’s growing telecom sector.
Written By Fazal Ul Vahab C H
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