Vodafone Idea (VODA.BO): 1QFY27: Operating Beat; Funding Overhang Eases; Capex Visibility Improves

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11 Aug 2026 07:34:40 ET │ 15 pages

Vodafone Idea (VODA.BO)

1QFY27: Operating Beat; Funding Overhang Eases; Capex Visibility

Improves

CITI'S TAKE

VI’s 1Q performance was ahead of expectations and marked by 4 key

positives: 1) Revenue beat, with +3.2% qoq growth; 2) Positive net

subscriber additions for the first time in several years; 3) Incremental

funding of Rs52bn secured which, together with Rs66bn cash on books,

provides visibility on accelerated capex over the next few qtrs; 4) Capex

orders placed for Rs90bn (20% of the planned Rs450bn 3-year capex

guidance). With funding constraints gradually easing, the key focus will

now be on pace of network rollout and execution, in our view. We maintain

our Buy rating on the stock; TP Rs17.

Buy

Price (10 Aug 26 15:30)

Rs12.91

Target price

Rs17.00

Expected share price return

31.7%

Expected dividend yield

0.0%

Expected total return

31.7%

Market Cap

Rs1,398,709M

US$14,676M

Saurabh HandaAC

1Q ahead — 1Q revenue grew +3.2% qoq to Rs117bn, ahead of our +1.4% qoq

expectation. This compares with revenue growth for its two peers at 3.8%/2.5%.

Cash EBITDA (ex-IndAS) was +1.8% qoq at Rs24.8bn, ahead of our expectation of

flattish EBITDA. Net loss stood at -Rs38bn vs. our -Rs55bn estimate, primarily on

account of a Rs16bn exceptional gain (largely pertains to gain on remeasurement of

settlement assets).

Prerna Goenka

Mobile KPIs improve — 1) Reported ARPU rose qoq from Rs174 to Rs177 and

customer ARPU (ex-M2M) rose qoq from Rs190 to Rs195, both ahead of estimates.

2) Subscriber trends flipped to positive for the first time since the 2018 merger, with

+0.3m qoq net adds, taking the total subscriber base to 193.1m. 3) 4G/5G

subscribers grew by +1.2m, again a multi-year high (vs. 0.6m avg. adds in recent

qtrs), taking the total to 130.1m (67% of the total subscriber base). 4) Capex was

Rs19bn in 1Q vs. full year FY26 capex of Rs87bn, impacted by supply chain issues

due to the West Asia conflict.

Incremental funding secured; focus on execution as capex visibility improves —

VI announced that it has secured total funding of Rs64bn – this includes the Rs12bn

Earnings Summary

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Diluted EPS

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