Synopsis: The share of this telecom company remained in focus after Q4 FY26 results and brokerage views highlighted improving ARPU, stable operations, and better funding visibility.
The share of this company, one of India’s largest telecommunications service providers, formed in 2018 through the merger of Vodafone India and Idea Cellular, gained traction after it posted Q4 numbers and brokerage view.
With a market capitalization of Rs 1,38,137 crore, Vodafone Idea Ltd’s share on Monday made a day low of Rs 12.45 per share, down by 3.9 percent from its previous day’s close price of Rs 12.96 per share. The share of this company gave a return of 89 percent over the last year.
Result Overview
Fiscal year comparison: revenue from operations of Rs 44,873 crore compared to Rs 43,571 crore in FY25, reflecting marginal growth. Profit before tax stood at Rs 34,548 crore in FY26 against a loss of Rs 27,368 crore in FY25, while profit after tax came in at Rs 34,552 crore versus a loss of Rs 27,383 crore in FY25. Earnings per share improved to Rs 3.19 in FY26 from a negative Rs 3.84 in FY25, indicating a strong turnaround in profitability.
Vodafone Idea posted a profit in Q4 FY26 and for the full year, but it’s largely an accounting gain. The government slashed Vi’s AGR dues from Rs. 87,695 crore to Rs. 64,046 crore, and the resulting Rs. 55,622 crore difference was credited directly to their books.
Brokerage View
UBS on Vodafone Idea
UBS maintained a Neutral rating on Vodafone Idea with a target price of Rs 12.40, citing early signs of operational stabilization through improving ARPU and EBITDA margins, while highlighting that significant additional capital raising remains crucial for sustaining long-term business recovery.
Subscriber Stability Supports Operations UBS highlighted that Vodafone Idea showed early signs of an operating turnaround in Q4 FY26, as subscriber trends stabilized with the user base remaining largely flat QoQ at 192.8 million, while blended ARPU improved 1.2 percent QoQ to Rs 174.
EBITDA Growth Driven by Cost Control The brokerage noted that lower personnel costs and access charges supported EBITDA growth of 1.5 percent QoQ and 4.9 percent YoY to Rs 48.9 billion. EBITDA margins also improved by 60 basis points QoQ to 43.1 percent, reflecting better operational efficiency during the quarter.
Larger Capital Raise Still Needed UBS stated that reported PAT was supported by one-off gains from reversal or postponement of AGR dues worth Rs 574.9 billion. However, adjusted net loss stood at Rs 55.1 billion, higher than estimates. While the Rs 4,730 crore fund raise is positive, UBS believes a much larger capital infusion remains essential for long-term sustainability.
Macquarie on Vodafone Idea
Macquarie maintained an Underperform rating on Vodafone Idea with a target price of Rs 9, citing concerns over high debt levels, funding requirements, and long-term competitive challenges despite operational stabilization in Q4 FY26.
One-Time Gain Boosts Profitability Vodafone Idea reported Q4 FY26 operational performance largely in line with expectations, while net income was supported by a one-time gain arising from the reversal of AGR dues, helping improve reported profitability during the quarter.
ARPU Growth Remains Positive The company’s net subscriber base declined marginally by around 100,000 users QoQ to 193 million. However, ARPU improved 1.2 percent QoQ to Rs 174 per month, outperforming peers such as Bharti Airtel and Reliance Jio on sequential ARPU growth.
Debt Position and Fund Raise in Focus As of March quarter-end, Vodafone Idea’s government dues stood at nearly US$16 billion, mainly comprising deferred spectrum liabilities and AGR obligations. In comparison, bank and financial liabilities remained lower at US$0.4 billion, while cash balance stood at US$0.6 billion. The board also approved a Rs 4.7 billion promoter-linked warrant fund raise.
Citi on Vodafone Idea
Citi maintained its Buy/High Risk rating on Vodafone Idea with a target price of Rs 14, citing improving KPIs, better funding visibility through AGR relief, and continued promoter support as key positives for the company.
KPIs and Funding Visibility Improve: Citi noted that key performance indicators of Vodafone Idea continued to improve steadily during Q4 FY26, supported by improving operational trends and better business stability. The brokerage also highlighted that the AGR reset and continued promoter support have strengthened funding visibility.
Equity Infusion Reflects Promoter Confidence: Citi stated that the recent equity infusion signals promoter confidence in Vodafone Idea’s long-term prospects. The brokerage added that the closure of pending bank funding could become a major catalyst, helping accelerate network investments, operational improvements, and overall business recovery going forward.
About the Company
Vodafone Idea Limited’s Vi is one of India’s leading telecom service providers with a pan-India presence. Formed through the merger of two of India’s much-loved brands, Vodafone and Idea, we are an Aditya Birla Group and Vodafone Group.
With over 200 million customers, the company covers over 1.2 billion Indians and provides a superior network experience with our 4G and steadily expanding 5G services, enabling seamless voice, data, and digital experiences across the country.
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