Indus Towers Acquires 26% Stake in Renewable Energy SPV: Share Price Rose 2%

Stock Market Update: 

In the morning trading session, Indus Towers shares rose 2% on February 4, 2025, following the announcement of its 26% stake acquisition in Amplus Tungabhadra Private Limited.

Key Highlights of the Acquisition

• Indus Towers acquired a 26% stake in Amplus Tungabhadra Private Limited, a renewable energy SPV, for ₹27 crore.
• The company plans to draw 50 MW of renewable energy from the Solar PV power plant, adhering to regulatory guidelines for captive power usage.
• The acquisition supports Indus Towers' Net Zero sustainability goals by increasing renewable energy consumption.
• Amplus Tungabhadra, established in October 2023, focuses on constructing, operating, and maintaining renewable energy plants.

Market Reaction & Share Price Impact

• Following the announcement, Indus Towers' share price surged 2.45%, reaching an intraday high of ₹358.50 on the BSE. (as on 10:35 AM)
• Indus Towers has a market capitalization of over ₹93,000 crore and is a constituent of the BSE 200 index.

Indus Towers Q3 FY25 Performance

Indus Towers recently reported strong Q3 FY25 earnings, showcasing robust financial performance:

• Revenue: ₹7,547 crore (+4.8% YoY)
• EBITDA: ₹6,997 crore (+93.2% YoY)
• Net Profit: ₹4,003 crore (+159.9% YoY)

Management Outlook

Prachur Sah, MD & CEO of Indus Towers, highlighted:

• The company's ability to retain a dominant market share with key customers.
• Strong tower and colocation additions boosted financial performance.
• Significant collections of overdue payments improved profitability.
• Expansion into Green Energy Open Access aligns with long-term sustainability goals.

Summary

Indus Towers' share price rose 2% on February 4, 2025, after acquiring a 26% stake in Amplus Tungabhadra Private Limited for ₹27 crore. This move supports its Net Zero goals by utilizing 50 MW of renewable energy from a Solar PV plant. The stock hit an intraday high of ₹358.50, driven by strong Q3 FY25 earnings, including ₹7,547 crore in revenue and ₹4,003 crore in net profit.