Airtel Arm Indus Towers To Foray Into Africa

(MENAFN- Live Mint) Indus Towers Ltd, a subsidiary of Bharti Airtel, on Tuesday said that it will expand its footprint in the African markets, beginning with Nigeria, Uganda, and Zambia.

The announcement assumes significance as Bharti Airtel already has a strong presence in 14 countries across Africa, with its arm Airtel Africa serving 166.1 million consumers as of March-end.

“Recognizing the growth potential in emerging geographies, the Board has approved the company's foray into African markets, beginning with Nigeria, Uganda, and Zambia,” Indus Towers said in an exchange filing.

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“These markets offer attractive prospects for revenue diversification, operational scalability, and long-term value creation,” the company said, adding that the foray is subject to necessary approvals and compliance with applicable laws and regulatory requirements.

As part of the go-to-market strategy for providing telecom infrastructure such as towers, the Company will largely leverage Bharti Airtel's presence to establish a strong and competitive presence in these regions.

“The Board's approval to enter international markets in Africa unlocks our vision for long-term sustainable growth and value creation for our shareholders,” said Prachur Sah, managing director and chief executive officer of Indus Towers.

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According to Sah, the company is well-positioned to differentiate itself in Africa's fast-growing telecom market and emerge as the preferred tower company. It will also leverage its expertise in delivering innovative and cost-effective solutions.

The company said it will continue to evaluate expansion opportunities in other African markets where Airtel has an established presence.

Currently, IHS Towers, American Tower Corp., and Helios Towers are among the major tower companies operating in Africa.

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In the April-June quarter, Indus Towers reported a 9.1% year-on-year (y-o-y) increase in revenue from operations to ₹8,058 crore. However, the net profit fell 9.8% to ₹1,737 crore due to higher expenses, such as depreciation, owing to the acquisition of new towers from Bharti Airtel and higher energy and power expenses, such as increased diesel consumption.

The company saw a 10% y-o-y increase in diesel consumption in Q1 FY26. This was attributed to unforeseen events like the early onset of monsoon and an unusually high number of weather-related disturbances (heavy rainfall and thunderstorms), which required more diesel usage to maintain network uptime, the management said during the earnings call in July.

Indus Towers also put on hold any immediate plans to distribute cash to shareholders, it said in the earnings call. The company is keen to conserve cash amid financial stability concerns surrounding its major customer,Vodafone Idea"> Vodafone Idea, even as it considers a higher capital expenditure cycle and evaluates potential inorganic growth opportunities.

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