Vodafone Idea Ltd (VIL) announced a substantial narrowing of its net loss to ₹3,754 crore in the June quarter, a significant improvement from the ₹6,608 crore loss recorded in the same period last year. The telecom operator also marginally beat analyst estimates for revenue and EBITDA, driven by sequential subscriber additions and increased adoption of high-speed broadband services.
Operational performance highlights include a 9.1% year-on-year increase in consolidated EBITDA, reaching ₹5,034 crore. The company reported its first net subscriber gain since the merger, adding 3 lakh users to reach a total of 19.31 crore subscribers. Over 67% of VIL's customer base now utilizes 4G/5G services, contributing to a 10.2% year-on-year rise in Average Revenue Per User (ARPU) to ₹195, up from ₹177 in Q1FY26. Average data usage per 4G/5G subscriber also climbed to 21.7 GB per month.
Analyst Ratings and Future Outlook
Following the Q1 results, stock brokerages largely maintained 'Neutral' ratings and unchanged target prices for VIL shares. UBS advised a 'Neutral' rating with a target price of ₹15, while CLSA recommended a 'Hold' with a target of ₹13 per share. Nomura also maintained its 'Neutral' stance, setting a target of ₹12.60, expressing a preference for Bharti Airtel among telecom stocks under its coverage. Axis Capital offered a more cautious 'Reduce' recommendation with a target of ₹12.25.
Analysts emphasized that attention would now be on VIL's forthcoming three-year capital expenditure program, making management commentary during the scheduled analyst briefing crucial. Key catalysts identified for Vodafone Idea's future performance include:
- Successful debt-capital raise initiatives.
- Industry-wide tariff hikes.
- Accelerated subscriber additions.
- Strategic equity investments that could provide essential confidence capital.
The company also noted exceptional gains during the quarter, primarily from the remeasurement of its stake in Vodafone Inc as part of a settlement with promoters.