HSBC has raised its target price on Vodafone Idea to ₹8.25 per share from ₹7.70 earlier. However, the revised target implies a downside of around 46.4% from the stock’s current level of ₹15.39.
The brokerage said Vodafone Idea’s operating cash flows are likely to fall short of its spectrum payment obligations in FY29E, even after factoring in a mobile tariff hike in Q1CY27E.
HSBC said Vodafone Idea would need to increase its operating cash flow nearly threefold over the next three years to meet its spectrum payment obligations.
While the company’s network investment plan is expected to help stabilise its market share, HSBC believes it is unlikely to drive meaningful market share gains.
The brokerage expects Vodafone Idea’s EBITDA to grow at around 15% CAGR over FY26-29E, primarily driven by an assumed mobile tariff hike in Q1CY27E.
However, Vodafone Idea will also need additional capital for spectrum renewals starting from 2030, HSBC said.
According to HSBC, the company’s inability to fund its spectrum payment obligations through operating cash flows is likely to remain an overhang on the stock.
Of the 21 analysts covering Vodafone Idea, three have a ‘Buy’ rating, eight have a ‘Hold’ rating and 10 have a ‘Sell’ rating on the stock.
Shares of Vodafone Idea were trading 1.35% lower at ₹15.39 on Tuesday. The stock has gained around 33% so far in 2026.
