Indus Towers has started earning revenue from its international expansion, with telecom towers deployed in Zambia and Uganda generating income during the September 2026 quarter. The development marks an important step in the company’s effort to diversify beyond India and build a presence in African telecom infrastructure markets.
The company plans to begin tower deployment in Nigeria during the December 2026 quarter. With Airtel serving as its anchor customer in the initial markets, Indus Towers is using its experience in building and managing shared telecom infrastructure in India to enter markets where demand for mobile connectivity and network investment is growing.
Key Takeaways
- Indus Towers started generating revenue from its tower deployments in Zambia and Uganda during the September 2026 quarter.
- The company plans to begin tower deployment in Nigeria during the December 2026 quarter.
- Airtel is the anchor customer supporting the initial African rollout.
- Early capital expenditure per tower remains within the company’s planned levels.
- Indus Towers is exploring opportunities to add more telecom operators as customers.
- The African business is still at an early stage, and the company has not yet disclosed detailed tower counts or investment figures.
Indus Towers’ Africa Expansion Moves From Planning to Revenue Generation
Indus Towers’ African expansion has moved beyond regulatory preparation and initial planning. The company confirmed that it deployed towers in Zambia and Uganda during the September quarter and began generating revenue from these assets.
The announcement came during the company’s second-quarter earnings discussion. Chief Financial Officer Abhishek Maheshwari said the initial capital expenditure per tower remained within planned levels, supporting the company’s cost assumptions during the early rollout.
The company had previously secured operating licences in Zambia, Uganda and Nigeria. It also established commercial arrangements with an anchor customer and began preparing its supply chain and operating ecosystem for the expansion.
The start of revenue generation is an important milestone because it indicates that the first deployed infrastructure assets have entered commercial operation. However, the African business has not yet reached a scale at which Indus Towers can provide meaningful financial or operational performance metrics.
Nigeria Deployment Planned for the December Quarter
After beginning operations in Zambia and Uganda, Indus Towers is preparing to enter Nigeria, another important market in its African expansion strategy.
The company expects to begin tower deployment in Nigeria during the December 2026 quarter. This phased approach allows Indus Towers to establish operations in selected markets before expanding its infrastructure footprint further.
The three initial markets—Zambia, Uganda and Nigeria—were selected as part of the company’s broader international growth strategy. Indus Towers sees Africa as a long-term opportunity because telecom operators in the region require additional infrastructure to support network expansion and rising data consumption.
The company has not disclosed the number of towers deployed in Zambia and Uganda or the precise capital expenditure committed to the African business. Management indicated that further operational and financial details would be shared as the business reaches a more representative scale.
Airtel Provides an Initial Customer Base
Airtel is the primary anchor customer supporting Indus Towers’ initial African operations. This relationship gives the company an established customer base as it enters markets where it does not yet have a large operating presence.
An anchor tenant is important in the telecom tower business because it provides an initial source of rental revenue. Building a tower and securing its first tenant can help establish the economics of the asset, while additional tenants can improve utilisation and profitability.
Indus Towers is also engaging with potential customers beyond its anchor tenant. Its objective is to attract more telecom operators to use the same infrastructure rather than requiring each operator to build separate towers.
This shared-infrastructure model has been central to Indus Towers’ business in India. Applying it in African markets could help the company increase the number of tenants per tower over time.
How the Shared-Tower Business Model Works
Telecom tower companies generally own or operate passive infrastructure, including tower structures, power systems and related facilities. Mobile network operators install their own antennas and radio equipment on these structures to provide wireless services.
When multiple telecom operators share one tower, the infrastructure provider can generate rental income from more than one customer while spreading certain operating costs across tenants.
| Business component | How it contributes |
|---|---|
| Tower deployment | Creates infrastructure that telecom operators can use |
| Anchor tenant | Provides the initial customer and revenue base |
| Additional tenants | Increase infrastructure utilisation and rental income |
| Shared infrastructure | Reduces the need for duplicate tower construction |
| Operating efficiency | Helps improve returns as the network expands |
For Indus Towers, the opportunity in Africa will depend on how quickly it can deploy infrastructure, attract additional tenants and manage operating costs in each market.
Early Capital Expenditure Remains Within Planned Levels
Capital expenditure is a key factor in determining whether the African expansion can generate attractive returns.
Indus Towers said its early capital expenditure per tower remains within the planned range. Management described this as validation of its cost model during the initial rollout.
The company had previously indicated that investment in Africa during the first one to two years would be moderate compared with its spending in India and would be largely debt-funded. Management also said the African expansion was not expected to materially affect the free cash flow generated by the Indian business.
However, the company has not provided a detailed breakdown of the amount invested in Africa or the expected returns from individual markets. Investors will need to monitor future disclosures to understand the capital intensity and profitability of the expansion.
Indus Towers’ Existing India Business Provides the Foundation
Indus Towers remains a major telecom infrastructure provider in India, where its tower network supports mobile operators expanding their coverage and network capacity.
During the September 2026 quarter, the company added 2,869 towers, taking its total tower base to 270,480. Its co-location count increased by 7,903 to 440,153.
Co-locations refer to instances where telecom operators install their network equipment on towers operated by an infrastructure provider. Growth in co-locations can increase revenue from existing infrastructure without requiring the company to construct an entirely new tower for every additional customer.
The expansion into Africa gives Indus Towers another potential source of growth alongside its established Indian operations. It also allows the company to use its experience in network deployment, infrastructure sharing, vendor management and operating efficiency in new markets.
What Investors Should Watch Next
The African expansion is still in its early stages, so the next few quarters will be important in assessing whether the business can develop into a meaningful contributor to Indus Towers’ overall performance.
Key indicators to monitor include:
- Tower additions: The pace at which the company deploys infrastructure in Zambia, Uganda and Nigeria.
- Revenue contribution: Whether revenue from the African operations grows as more towers become operational.
- Customer additions: Whether Indus Towers attracts telecom operators beyond Airtel.
- Capital expenditure: Whether deployment costs remain within the company’s planned levels.
- Tenancy and utilisation: Whether additional customers improve the economics of the tower network.
The company has indicated that it will provide more meaningful operational and financial metrics as its African portfolio expands. Until then, investors should treat the initial revenue announcement as an early milestone rather than evidence of a fully scaled international business.
The Bigger Picture
Indus Towers’ Africa expansion represents a strategic shift beyond its established Indian market. The company is entering markets where telecom infrastructure requirements are evolving and where operators may benefit from sharing towers instead of investing independently in large infrastructure networks.
The early revenue from Zambia and Uganda provides evidence that the first phase of the rollout has become commercially operational. However, the long-term opportunity will depend on the company’s ability to expand its tower footprint, attract multiple tenants and maintain disciplined capital spending.
For the Indian telecom infrastructure sector, the move also highlights how established domestic players could use their operating capabilities to pursue growth in international markets.
Looking Ahead
Indus Towers is expected to focus on beginning tower deployment in Nigeria during the December 2026 quarter while continuing to expand its operations in Zambia and Uganda. The pace of new deployments, customer additions and capital investment will help determine how quickly the African business can grow.
The next important milestone will be the disclosure of more detailed operating and financial metrics. If the company can add customers beyond Airtel while keeping deployment costs under control, Africa could become a meaningful long-term growth opportunity alongside its Indian business.
Frequently Asked Questions
1. Has Indus Towers started earning revenue in Africa?
Yes. Indus Towers said its towers deployed in Zambia and Uganda started generating revenue during the September 2026 quarter.
2. Which African countries is Indus Towers entering?
The company has identified Zambia, Uganda and Nigeria as its initial African markets.
3. When will Indus Towers start operations in Nigeria?
Indus Towers plans to begin tower deployment in Nigeria during the December 2026 quarter.
4. Who is the anchor customer for Indus Towers in Africa?
Airtel is the primary anchor customer supporting the initial African expansion.
5. How many towers has Indus Towers deployed in Africa?
The company has not yet disclosed the exact number of towers deployed in Zambia and Uganda or the total investment involved.
6. Why is Africa important for Indus Towers?
Africa offers an opportunity to diversify beyond India, serve growing telecom infrastructure requirements and apply Indus Towers’ shared-infrastructure business model in new markets.
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