Vodafone Idea
Vodafone Idea
Telecom F&OKey Fundamentals
LargecapTelecom Service ProviderTelecomTapetide Score
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Key Insights
Weaknesses
4- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of 1.36% over past five years.
- Earnings include an other income of Rs.60,812 Cr.
- Promoter holding has decreased over last 3 years: -24.7%
Growth Rate
AI Analysis — Bull vs Bear
Vodafone Idea has a market capitalisation of about Rs 1,51,464 Cr and a trailing P/E of 4.1x. That P/E is inflated by one-time gains: earnings include Rs 60,812 Cr of other income, and Q4 FY26 carried an exceptional gain of Rs 58,116 Cr after AGR dues were cut from Rs 87,695 Cr to Rs 64,046 Cr. Operating trends are mixed. ARPU rose to Rs 195 in Q1 FY27 and the stock returned 78% over one year, but 5-year sales CAGR is just 1%, net worth is still negative (P/B -4.32), Q1 FY27 remained loss-making at Rs 3,754 Cr, and promoter holding fell 24.7% over 3 years.
- The Department of Telecommunications finalised AGR dues at Rs 64,046 Cr, down Rs 23,649 Cr (27%) from Rs 87,695 Cr. This reduces a large overhang and makes future liabilities clearer.
- Customer ARPU rose to Rs 190 in Q4 FY26 from Rs 175 in Q4 FY25, up 8.3% YoY, and then to Rs 195 in Q1 FY27. The company reports this as the highest in the industry, which suggests pricing power.
- Net loss narrowed to Rs 3,754 Cr in Q1 FY27, compared with Rs 5,286 Cr in Q3 FY26 and Rs 7,167 Cr in Q4 FY25, showing steady operating improvement.
- The promoter plans to infuse Rs 4,730 Cr of fresh capital. This supports funding for network investment and shows continued promoter backing after the AGR resolution.
- The 4G/5G subscriber base grew to 128.9 million from 126.4 million YoY. Customers are moving to higher-value data plans even as the total base shrinks.
- TTM compounded profit growth is 17% and 3-year profit growth is 6%, pointing to improving earnings momentum from a low base.
- The stock returned 78% over one year, compared with a 10-year CAGR of -11%. The market has re-rated it on the balance sheet repair.
- Q1 FY27 revenue from operations was Rs 11,689 Cr, up 2.4% YoY. Management describes FY27 as a 'period of execution' now that the AGR relief and capital infusion are in place.
- The reported earnings are not recurring. They include Rs 60,812 Cr of other income, and the Q4 FY26 profit of Rs 51,970 Cr came mainly from a one-time exceptional AGR gain of Rs 58,116 Cr. The 4.1x P/E therefore overstates underlying profitability.
- P/B is -4.32, meaning net worth is still negative despite the AGR relief. That is why ROE, ROCE and debt-to-equity cannot be meaningfully calculated.
- The business is still loss-making at the operating level, with a Q1 FY27 net loss of Rs 3,754 Cr after the one-time gain and an FY25 annual loss of about Rs 27,400 Cr.
- Sales growth is weak: 1.36% CAGR over 5 years, 2% over 3 years and 2% over 10 years. This lags a sector that has seen repeated tariff increases.
- The subscriber base fell about 2% YoY to 19.31 crore in the June 2026 quarter from 19.77 crore a year earlier, so the company continues to lose market share.
- Interest coverage is low. Revised AGR dues of Rs 64,046 Cr, plus spectrum liabilities, still weigh on cash flows and limit capex capacity.
- Promoter holding fell 24.7% over 3 years. The main cause is the government's debt-to-equity conversions, which diluted existing shareholders, and more dilution is possible.
- The 10-year stock CAGR is -11% and the 5-year CAGR is only 5%, showing that long-term shareholders have lost value despite the recent 78% one-year gain.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- HSBC flags 47% downside Sep 8
HSBC kept its 'Reduce' rating with a target of ₹8.25, implying 47% downside from ₹15.47. It said operating cash flow would need to nearly triple in three years to meet FY29 spectrum payments, even after a tariff hike in Q1 CY2027. The stock fell 0.83% on the call.
- ₹49,000 cr spectrum dues Sep 7
Spectrum dues of about ₹49,000 crore fall due over three years: ₹7,000 crore in FY27, ₹15,000 crore in FY28 and ₹27,000 crore in FY29. Jefferies estimates a further ₹16,000 crore equity raise will be needed in FY30.
- TRAI probes MNP malpractice complaints Sep 14
TRAI is examining complaints from Airtel and Jio that Vi blocked SMSes to 1900 used to generate porting codes and that its agents posed as rival telco staff. Vi denies wrongdoing. Analysts flag possible compliance costs of ₹250-500 crore and a 4-8 week delay to the ₹35,000 crore loan.
- Losses continue every quarter Sep 10
Q1FY27 net loss was ₹3,750 crore, or about ₹5,358 crore before a one-off gain from revaluing pledged shares. Total debt is about ₹2.1 trillion and equity is negative at ₹35,363 crore.
- Axis Capital says rally overdone Sep 25
Axis Capital keeps a 'Reduce' rating with a ₹13 target, below the ₹14.15 market price. It says the 64.73% one-year rally already prices in the fundraise and tariff hikes.
- Capex deployment lags orders Sep 25
Supply chain problems held Q1FY27 capex spending to ₹1,930 crore against ₹9,100 crore of orders placed. This slows the targeted rollout of about 3,500 sites a month.
- Large scale gap vs rivals Sep 14
As of July 2026, Vi had 199.06 million wireless subscribers against Jio's 506.03 million and Airtel's 489.49 million. Its ARPU of ₹195 trails Airtel's ₹264 and Jio's ₹215.60.
- TRAI QoS penalty Sep 15
TRAI fined Vi ₹2 lakh for missing Quality of Service benchmarks in October 2025. The amount is immaterial and the company is reviewing the order.
- SBI-led ₹35,000 cr funding Sep 10
An SBI-led consortium, including Union Bank and NaBFID, agreed to about $3.5 billion (₹35,000 crore) of financing: ₹25,000 crore funded and ₹10,000 crore non-funded, for a tenure of nearly 10 years. A condition is that Kumar Mangalam Birla stays chairman for the loan's tenure. Shares rose up to 2% while the Sensex fell 1%.
- Q1FY27 growth, first net adds Sep 15
Revenue rose 3.2% QoQ to ₹11,689 crore and EBITDA rose 3% to ₹5,034 crore at a 43.07% margin. ARPU reached ₹195, up 10.2% YoY and the 20th straight quarter of growth. Vi posted net subscriber additions, with churn down from 5.2 million to 0.5 million.
- Supreme Court quashes ₹363 cr GST Sep 7
The Supreme Court dismissed the Centre's appeal against the Bombay HC's 29 April 2026 order quashing a ₹363 crore GST demand on the erstwhile VMSL. Estimated cash saved, including penalty and interest, is ₹450-500 crore. The stock hit a 25-month high of ₹15.65.
- Free roaming in 170+ countries Sep 25
Vi made international roaming a built-in benefit on postpaid plans from ₹501, enterprise plans from ₹451 and annual prepaid plans, covering up to three trips a year. It estimates customer savings of up to ₹9,000 a year. The stock rose about 2% to ₹14.32 against a 0.25% gain in the Nifty.
- Government stake at 48.99% Sep 10
The government converted about ₹37,000 crore of dues into equity, lifting its stake to 48.99% from 22.6%. It also reaffirmed its commitment to keeping three private telecom players.
- Network capex showing early results Sep 9
₹16,000 crore of the ₹45,000 crore three-year capex plan has been deployed, taking 4G population coverage to 86.3%. Sites that received investment show +5.7% revenue growth versus -3.3% across the rest of the network.
- Brand refresh with Shah Rukh Khan Sep 7
Vi signed Shah Rukh Khan as brand ambassador and launched a new logo and the campaign 'Vi badal raha hai... tayaar rahiye'. The launch coincided with nearly 4% intraday gains in the stock.
- Nomura stays Neutral after roaming Sep 28
Nomura kept its Neutral rating after the roaming launch. It noted that postpaid plans include 1-3 free international trips a year for an extra ₹50 a month, aimed at cutting churn and winning premium Airtel and Jio users.
- Split analyst consensus Sep 8
Of the 21 analysts covering the stock, 3 rate it Buy, 8 Hold and 10 Sell. Market cap is about ₹1.68 lakh crore, and the stock is up roughly 33% in 2026 while the Nifty is down about 9%.
- Trading window shut for Q2FY27 Sep 28
The trading window closes from October 1, 2026 until 48 hours after Q2FY27 results for the quarter ending September 30, 2026.
- Gopika Pant joins board Sep 15
Gopika Pant was appointed Independent Woman Director for five years from September 17, 2026, subject to shareholder approval by postal ballot.
TL;DR: Vodafone Idea's turnaround is gaining traction. ARPU has grown for 20 straight quarters to ₹195, EBITDA margin is 43%, churn has dropped sharply, and the SBI-led ₹35,000 crore funding plus a 49% government stake have eased near-term liquidity worries. Risks remain heavy: losses persist, ₹49,000 crore of spectrum dues peak at ₹27,000 crore in FY29, TRAI is probing MNP complaints, and 10 of 21 analysts rate it Sell, with HSBC's ₹8.25 target the most bearish. The stock has slipped from its ₹15.65 high to about ₹14, suggesting much of the good news is priced in. The next checks are formal closure of the bank loan, faster capex deployment and Q2FY27 results after October 1.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 10,656 | 10,716 | 10,673 | 10,607 | 10,508 | 10,932 | 11,117 | 11,015 | 11,022 | 11,195 | 11,323 | 11,332 | 11,689 |
| Expenses | 6,499 | 6,435 | 6,324 | 6,274 | 6,304 | 6,383 | 6,405 | 6,356 | 6,410 | 6,511 | 6,506 | 6,443 | 6,655 |
| Operating Profit | 4,156 | 4,282 | 4,349 | 4,333 | 4,205 | 4,550 | 4,712 | 4,659 | 4,612 | 4,684 | 4,817 | 4,889 | 5,034 |
| OPM % | 39% | 40% | 41% | 41% | 40% | 42% | 42% | 42% | 42% | 42% | 43% | 43% | 43% |
| Other Income | 21 | 34 | 780 | 32 | 256 | 300 | 250 | 216 | 142 | 140 | 1,271 | 57,595 | 1,806 |
| Interest | 6,398 | 6,569 | 6,518 | 6,280 | 5,519 | 6,614 | 5,940 | 6,471 | 5,893 | 4,784 | 5,828 | 4,990 | 5,120 |
| Depreciation | 5,616 | 5,667 | 5,598 | 5,751 | 5,369 | 5,404 | 5,629 | 5,571 | 5,472 | 5,567 | 5,550 | 5,518 | 5,467 |
| PBT | -7,837 | -7,920 | -6,987 | -7,666 | -6,427 | -7,168 | -6,607 | -7,167 | -6,611 | -5,527 | -5,290 | 51,976 | -3,747 |
| Tax % | 0% | 10% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Profit | -7,840 | -8,738 | -6,986 | -7,675 | -6,432 | -7,176 | -6,609 | -7,167 | -6,608 | -5,524 | -5,286 | 51,970 | -3,754 |
| EPS in Rs | -1.61 | -1.79 | -1.44 | -1.53 | -0.95 | -1.03 | -0.95 | -1 | -0.61 | -0.51 | -0.49 | 4.8 | -0.35 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 31,571 | 35,949 | 35,576 | 28,279 | 37,092 | 44,958 | 41,952 | 38,516 | 42,177 | 42,652 | 43,572 | 44,873 | 45,539 |
| Expenses | 20,771 | 24,281 | 25,348 | 22,224 | 32,976 | 30,042 | 25,006 | 22,547 | 25,424 | 25,580 | 25,524 | 26,014 | 26,115 |
| Operating Profit | 10,800 | 11,668 | 10,227 | 6,054 | 4,116 | 14,916 | 16,946 | 15,968 | 16,753 | 17,072 | 18,048 | 18,859 | 19,424 |
| OPM % | 34% | 32% | 29% | 21% | 11% | 33% | 40% | 41% | 40% | 40% | 41% | 42% | 43% |
| Other Income | 497 | 641 | 746 | 703 | 1,789 | -36,964 | -19,563 | 363 | 354 | 917 | 1,100 | 59,292 | 60,812 |
| Interest | 1,060 | 1,803 | 4,010 | 4,847 | 9,545 | 15,393 | 17,998 | 20,981 | 23,354 | 25,766 | 24,543 | 21,495 | 20,722 |
| Depreciation | 5,304 | 6,256 | 7,827 | 8,409 | 14,536 | 24,356 | 23,638 | 23,584 | 23,050 | 22,634 | 21,973 | 22,108 | 22,102 |
| PBT | 4,933 | 4,250 | -863 | -6,499 | -18,175 | -61,797 | -44,253 | -28,234 | -29,298 | -30,410 | -27,368 | 34,548 | 37,412 |
| Tax % | 35% | 36% | -54% | -36% | -20% | 20% | 0% | 0% | 0% | 3% | 0% | 0% | — |
| Net Profit | 3,193 | 2,728 | -400 | -4,168 | -14,604 | -73,878 | -44,233 | -28,245 | -29,301 | -31,238 | -27,384 | 34,552 | 37,406 |
| EPS in Rs | 2.7 | 2.3 | -0.34 | -2.91 | -5.08 | -25.71 | -15.39 | -8.79 | -6.02 | -6.23 | -3.84 | 3.19 | 3.45 |
| Div. Payout % | 7% | 8% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 3,598 | 3,601 | 3,605 | 4,359 | 8,736 | 28,735 | 28,735 | 32,119 | 48,680 | 50,120 | 71,393 | 1,08,343 |
| Reserves | 19,429 | 19,950 | 21,127 | 22,903 | 50,899 | -22,756 | -66,963 | -94,084 | -1,23,039 | -1,54,287 | -1,41,713 | -1,44,101 |
| Borrowings | 26,859 | 40,541 | 55,055 | 57,985 | 1,25,940 | 1,14,996 | 2,01,720 | 2,13,761 | 2,37,766 | 2,43,809 | 2,33,229 | 1,92,528 |
| Other Liabilities | 10,580 | 16,034 | 16,881 | 13,264 | 44,078 | 1,05,942 | 39,986 | 42,233 | 43,836 | 45,355 | 34,946 | 34,860 |
| Total Liabilities | 60,467 | 80,126 | 96,668 | 98,511 | 2,29,652 | 2,26,918 | 2,03,478 | 1,94,029 | 2,07,243 | 1,84,997 | 1,97,855 | 1,91,630 |
| Fixed Assets | 35,540 | 65,190 | 76,763 | 79,692 | 1,77,800 | 1,85,836 | 1,67,490 | 1,56,819 | 1,56,255 | 1,40,125 | 1,41,320 | 1,43,086 |
| CWIP | 5,141 | 6,040 | 7,535 | 3,585 | 5,103 | 1,138 | 606 | 364 | 17,876 | 18,189 | 18,213 | 15,274 |
| Investments | 11,527 | 3,471 | 6,378 | 7,290 | 8,239 | 1,979 | 4 | 5 | 6 | 0 | 0 | 107 |
| Other Assets | 8,260 | 5,425 | 5,991 | 7,944 | 38,511 | 37,964 | 35,378 | 36,841 | 33,105 | 26,683 | 38,322 | 33,163 |
| Total Assets | 60,467 | 80,126 | 96,668 | 98,511 | 2,29,652 | 2,26,918 | 2,03,478 | 1,94,029 | 2,07,243 | 1,84,997 | 1,97,855 | 1,91,630 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 10,418 | 10,949 | 10,476 | 5,332 | 5,348 | 7,328 | 15,640 | 17,387 | 18,869 | 20,826 | 9,290 | 19,411 |
| Investing | -5,726 | -2,389 | -15,556 | -9,303 | -1,640 | -2,698 | 1,075 | -5,730 | -5,414 | -1,907 | -16,248 | -6,104 |
| Financing | 8,028 | -9,330 | 4,506 | 3,925 | -2,949 | -5,019 | -16,731 | -10,554 | -14,680 | -18,980 | 7,047 | -11,458 |
| Net Cash Flow | 12,720 | -770 | -574 | -46 | 758 | -389 | -17 | 1,103 | -1,224 | -61 | 89 | 1,849 |
| Free Cash Flow | 6,260 | 3,824 | 5,144 | -3,269 | -2,238 | -474 | 10,534 | 11,395 | 13,332 | 19,296 | -930 | 8,597 |
| CFO/OP | 107 | 101 | 109 | 95 | 123 | 33 | 88 | 100 | 105 | 105 | 49 | 101 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 11 | 12 | 13 | 11 | 32 | 25 | 22 | 23 | 19 | 19 | 17 | 16 |
| Cash Conversion Cycle | 11 | 12 | 13 | 11 | 32 | 25 | 22 | 23 | 19 | 19 | 17 | 16 |
| Working Capital Days | -174 | -134 | -148 | -92 | -430 | -667 | -474 | -453 | -407 | -358 | -294 | -192 |
| ROCE % | 14% | 11% | 4% | -2% | -8% | -5% | -4% | -5% | -4% | -4% | -2% | -2% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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Company Information
Vodafone Idea is one of the leading telecom service providers in India. The Company is engaged in the business of Mobility and Long Distance services, trading of handsets and data cards.[1]
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