Indus Towers expects revenue growth of around 5 to 6 per cent to continue, supported by expansion in its tower and co-location base, managing director and chief executive officer Prachur Sah said. The Gurugram-based telecom infrastructure company also plans to double its solar-powered sites to 100,000 by early or mid-FY29.

Sah said demand for towers remained healthy despite expectations of a slowdown after the peak of 5G network rollouts in FY24 and FY25. Continued network deployment by telecom operators and rising data consumption in India are supporting demand, while urban expansion and data usage of around 30 to 40 GB per person are expected to sustain requirements for telecom infrastructure.

Indus Towers began expanding its solar footprint around the middle to later part of FY24 and has integrated approximately 300 MW of distributed solar capacity across its network. The company recorded an 11 per cent reduction in diesel consumption during the first half of the current financial year compared with the corresponding period last year.

Although energy costs are largely passed on to telecom customers, solar investments also contribute to service revenue. The company earns rental income from its solar infrastructure, which supports margins through service revenue rather than through direct reductions in energy costs. Sah did not disclose the total investment in the initiative, citing competitive considerations.

The company is also pursuing a greenfield expansion in Uganda, Zambia and Nigeria. It secured the required licences over the past year and began deploying towers in Uganda and Zambia in September. The African operations are being developed as a long-term growth platform focused on lower tower costs and reduced energy expenses for customers, although their financial contribution remains immaterial at this early stage.

Indus Towers expects to provide greater visibility on the African business over the next few quarters as deployment progresses. Its current market capitalisation is approximately Rs. 1.03 tn.