Vodafone Idea Share Price Target: India’s telecom service provider Vodafone Idea will be in focus on May 18 (Monday), after the company reported its Q4 results. Following the announcement, brokerage firm Citi reiterated a BUY call on the stock, while highlighting the high risk associated with it.
The company reported a net profit of Rs 51,970 crore for the March quarter of FY26, compared to a net loss of Rs 7,166 crore in the same quarter last year. Revenue from operations stood at Rs 11,332 crore, reflecting a slight increase of 3 per cent from Rs 11,017 crore in the corresponding period last year. (Vodafone Idea Q4 Results)
However, the stock has remained in focus over the past quarter due to the AGR issue, which saw a resolution after the Department of Telecommunications (DoT) officially reduced the telecom operator’s AGR dues by 27 per cent.
The recommendation suggests potential upside in the stock, although it continues to carry significant volatility and risk.
A key positive factor was the AGR reassessment, which significantly reduced the company’s debt burden. Net debt declined by 23 per cent, from around Rs 1.9 lakh crore to Rs 1.5 lakh crore. Consequently, the net debt-to-EBITDA ratio improved from 20x to 15x, according to the brokerage.
Net worth also improved, with losses narrowing from – Rs 87,700 crore to – Rs 35,800 crore. Subscriber losses have reduced sharply to nearly zero, indicating improving operational stability. The AGR reassessment, along with promoter infusion, is showing early signs of recovery.
Citi also views the capital raise as a strong signal of promoter confidence. Increased backing is expected to improve funding visibility and support future capital expenditure, thereby strengthening the company’s long-term outlook, despite continued high-risk fundamentals.
However, long-term performance remains mixed. The stock has declined around 81 per cent over the past 10 years, while it has delivered strong gains of approximately 82.8 per cent over the past three years.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
