Indus Towers Enters Africa with Expansion into Nigeria, Uganda, and Zambia
Expansion into Africa signals growth ambitions but raises concerns over delayed dividends and stock volatility
Indus Towers Ltd, India’s second-largest telecom tower company and an arm of Bharti Airtel, has announced its entry into the African market, beginning operations in Nigeria, Uganda, and Zambia. This marks the company’s first-ever international expansion.
The board of Indus Towers approved the move earlier this week, positioning it as a strategic effort to diversify revenue sources and expand its global footprint. The company will partner with Airtel Africa, which operates in over a dozen African nations, to serve as its anchor customer in these new markets.
In a regulatory filing, Indus Towers stated that the expansion aims to “diversify revenue, improve scalability, and create long-term value for shareholders.” The company emphasized that Airtel’s strong presence in Africa will enable a smooth entry, with existing infrastructure and demand already in place.
Indus Towers, which currently operates over 251,000 towers across 22 telecom circles in India, reported a free cash flow of ₹1,570 crore in the first quarter of FY26. This financial strength, the company said, allows it to reinvest in growth rather than distribute dividends—a decision that has drawn criticism from some investors.
Shares of Indus Towers fell nearly 5% on Tuesday following the announcement, hitting a 52-week low of ₹312 amid concerns over delayed dividends and the risks of international expansion. The company has not paid a dividend since May 2022.
Brokerages offered a mixed response. CLSA maintained an “outperform” rating with a target price of ₹520, while Citi retained its “buy” rating with a target of ₹460, citing attractive valuations. However, both noted that the African market currently represents a small portion of Airtel’s tower assets, raising questions about the short-term financial impact.
The initial expansion into Nigeria, Uganda, and Zambia is expected to be the first step in a broader plan. Indus Towers said it is evaluating opportunities in additional African markets where Airtel operates.
As the company ventures beyond India for the first time, its ability to execute effectively and deliver returns in unfamiliar markets will be closely watched. For now, the move signals a shift in strategy, from being a domestic market leader to a global telecom infrastructure player.