Latest news with #VIL
Economic Times
a day ago
- Business
- Economic Times
I-Sec maintains Hold on Vodafone Idea, lowers target price to Rs 7
ICICI Securities has maintained a Hold call on Vodafone Idea with a revised target price of Rs 7 (Earlier Rs 8). The current market price of Vodafone Idea is Rs 6.78. Vodafone Idea Ltd., incorporated in 1995, is a Mid Cap company with a market cap of Rs 73348.23 crore, operating in Telecommunications sector. ADVERTISEMENT Vodafone Idea's key products/revenue segments include Telecommunication Services, Other Operating Revenue and Traded Goods for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 11228.30 crore, down -1.22 % from last quarter Total Income of Rs 11366.80 crore and up 5.54% from last year same quarter Total Income of Rs 10639.30 crore. The company has reported net profit after tax of Rs -7168.10 crore in the latest quarter. The company's top management includes Takkar, Ramachandran, Gupta, Windlass, Adhikari, Agrawal, Mangalam Birla, Kamath, Agarwal, Sood, Kapania, Vaswani. The company has S R Batliboi & Associates LLP as its auditors. As on 31-03-2025, the company has a total of 7,139 crore shares outstanding. Investment Rationale ADVERTISEMENT Vodafone Idea's (VIL) Q4FY25 ARPU rose 0.6% QoQ (Bharti down 0.1%, RJio +1.4%), on expected lines. However, VIL lost higher-than-expected subs, and data subs dipped marginally by 0.1mn despite initial 4G network expansion. However, Voda Idea has started accruing the benefits of network rollout with strong penetration of 5G subs and improving customer engagement (data usage), which remains critical for revenue conversion of debt of Rs 370 billion into equity provides immediate relief and also helps to increase debt funding discussion intensity with banks, which is key for network expansion. ICICI Securities cut its FY26E/FY27E EBITDA by 1% each and reduce the target price to Rs 7 (from Rs 8), based on an FY27E EV/EBITDA multiple of 15x (unchanged). The brokerage maintains HOLD. ADVERTISEMENT Promoter/FII Holdings Promoters held 38.8 per cent stake in the company as of 31-Mar-2025, while FIIs owned 10.1 per cent, DIIs 4.9 per cent. (You can now subscribe to our ETMarkets WhatsApp channel) Disclaimer: Views and recommendations given in this section are the analysts' own and do not represent those of Please consult your financial adviser before taking any position in the stock/s mentioned.
Time of India
a day ago
- Business
- Time of India
I-Sec maintains Hold on Vodafone Idea, lowers target price to Rs 7
ICICI Securities has maintained a Hold call on Vodafone Idea with a revised target price of Rs 7 (Earlier Rs 8). The current market price of Vodafone Idea is Rs 6.78. Vodafone Idea Ltd. , incorporated in 1995, is a Mid Cap company with a market cap of Rs 73348.23 crore, operating in Telecommunications sector. Vodafone Idea's key products/revenue segments include Telecommunication Services, Other Operating Revenue and Traded Goods for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 11228.30 crore, down -1.22 % from last quarter Total Income of Rs 11366.80 crore and up 5.54% from last year same quarter Total Income of Rs 10639.30 crore. The company has reported net profit after tax of Rs -7168.10 crore in the latest quarter. The company's top management includes Takkar, Ramachandran, Gupta, Windlass, Adhikari, Agrawal, Mangalam Birla, Kamath, Agarwal, Sood, Kapania, Vaswani. The company has S R Batliboi & Associates LLP as its auditors. As on 31-03-2025, the company has a total of 7,139 crore shares outstanding. Live Events Investment Rationale Vodafone Idea's (VIL) Q4FY25 ARPU rose 0.6% QoQ (Bharti down 0.1%, RJio +1.4%), on expected lines. However, VIL lost higher-than-expected subs, and data subs dipped marginally by 0.1mn despite initial 4G network expansion. However, Voda Idea has started accruing the benefits of network rollout with strong penetration of 5G subs and improving customer engagement (data usage), which remains critical for revenue growth. Government's conversion of debt of Rs 370 billion into equity provides immediate relief and also helps to increase debt funding discussion intensity with banks, which is key for network expansion. ICICI Securities cut its FY26E/FY27E EBITDA by 1% each and reduce the target price to Rs 7 (from Rs 8), based on an FY27E EV/EBITDA multiple of 15x (unchanged). The brokerage maintains HOLD. Promoter/FII Holdings Promoters held 38.8 per cent stake in the company as of 31-Mar-2025, while FIIs owned 10.1 per cent, DIIs 4.9 per cent.
Economic Times
3 days ago
- Business
- Economic Times
Vodafone Idea share price target above Rs 12? What brokerages say
Vodafone Idea shares: The brokerage firm observed that VIL's Q4FY25 results fell short of expectations. The company also saw a loss of 1.6 million subscribers during the quarter, which was lower than the 5.1–5.2 million lost in Q2 and Q3, but slightly better than UBS's forecast of a 1.8 million decline. Tired of too many ads? Remove Ads UBS: Buy| Target price: Rs 12.10 Tired of too many ads? Remove Ads Nuvama: Hold| Target price: Rs 7.5 Macquarie: Underperform| Target price: Rs 6.50 Motilal Oswal: Sell| Target price: Rs 6.5 Tired of too many ads? Remove Ads Amid persistent concerns over subscriber erosion and a heavy debt burden, Vodafone Idea (VIL) shares have drawn the attention of several brokerage firms, with some projecting the stock could rise to as high as Rs company posted soft Q4FY25 results wherein the consolidated net loss was reported at Rs 7,166.1 crore for the quarter ended March 31, 2025 (Q4FY25), marking a 6.6% improvement from the Rs 7,674.59 crore loss reported in the same quarter last the company is not able to see any visibility on relief on its long-standing Adjusted Gross Revenue (AGR) dues, amounting to nearly Rs 30,000 this, analysts across brokerage firms have weighed in on their views about the stock. Here's what they say:The brokerage firm noted that VIL's Q4FY25 results were below their expectations. Additionally, the company lost 1.6 million subscribers in Q4 (vs a loss of 5.1-5.2 million in Q2/Q3 and UBS's estimate of 1.8 million subscriber loss in Q4). Overall, the results were slightly lower than the estimates and UBS noted that an eye needs to be kept on the fundraise updates, capex plan, 5G coverage and any potential AGR / spectrum relief to Nuvama, Vodafone Idea reported in-line Q4FY25 results, with revenue declining 0.9% quarter-on-quarter due to muted ARPU growth, partly attributed to fewer working days in the observed that while subscriber losses have moderated to pre-tariff hike levels, they still impede the company's recovery. The delay in debt funding remains a major overhang on VIL's viability. The brokerage cut its FY26E and FY27E EBITDA estimates by 7% and 4% respectively, citing further dilution from the government's equity holding. VIL is valued at 11x FY27E EV/ brokerage firm Macquarie reported that VIL posted a weak set of Q4FY25 results, missing estimates due to continued subscriber erosion and higher interest burden. VI's net subscriber base declined by 1.6 million quarter-on-quarter to approximately 198 million, while ARPU rose marginally by 0.6% to Rs noted that the company's government dues stood at around US$22.5 billion, with US$4.3 billion of spectrum dues converted to equity, leading to a 49% government shareholding. In contrast, bank and financial liabilities were lower at US$0.3 billion, and the cash balance stood at US$1.2 billion. The board has approved a Rs 200 billion (US$2.3 billion) fundraise via equity, debt, or a hybrid brokerage highlighted that the ongoing erosion in subscribers indicates persistent structural challenges, and despite the government being the largest shareholder, any further equity infusion remains uncertain. Macquarie continues to see industry-wide tailwinds from tariff hikes benefiting Bharti Airtel and Reliance Industries, which it maintains as Outperform-rated Oswal also highlighted that Vodafone Idea continues to lose market share to peers due to weaker ARPU conversion, a weaker subscriber mix, and high churn rates. The telco is planning a significant capex cycle of Rs 50,000–Rs 55,000 crore over the next two to three years to bridge the network gap with competitors. However, the brokerage noted that regaining lost subscribers will remain challenging, given rivals' stronger cash flows and deeper financial Oswal added that Vodafone Idea's network investments are heavily reliant on fresh debt funding, which itself hinges on continued AGR relief and government support, with an estimated Rs 20,000 crore annual cash shortfall projected through FY26–31. Stabilizing the subscriber base and securing further government relief are seen as crucial to the company's long-term survival.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
3 days ago
- Business
- Time of India
Vodafone Idea share price target above Rs 12? What brokerages say
Amid persistent concerns over subscriber erosion and a heavy debt burden, Vodafone Idea (VIL) shares have drawn the attention of several brokerage firms, with some projecting the stock could rise to as high as Rs 12.10. The company posted soft Q4FY25 results wherein the consolidated net loss was reported at Rs 7,166.1 crore for the quarter ended March 31, 2025 (Q4FY25), marking a 6.6% improvement from the Rs 7,674.59 crore loss reported in the same quarter last year. Further, the company is not able to see any visibility on relief on its long-standing Adjusted Gross Revenue (AGR) dues, amounting to nearly Rs 30,000 crore. Following this, analysts across brokerage firms have weighed in on their views about the stock. Here's what they say: UBS: Buy| Target price: Rs 12.10 The brokerage firm noted that VIL's Q4FY25 results were below their expectations. Additionally, the company lost 1.6 million subscribers in Q4 (vs a loss of 5.1-5.2 million in Q2/Q3 and UBS's estimate of 1.8 million subscriber loss in Q4). Overall, the results were slightly lower than the estimates and UBS noted that an eye needs to be kept on the fundraise updates, capex plan, 5G coverage and any potential AGR / spectrum relief measures. Nuvama: Hold| Target price: Rs 7.5 According to Nuvama, Vodafone Idea reported in-line Q4FY25 results, with revenue declining 0.9% quarter-on-quarter due to muted ARPU growth, partly attributed to fewer working days in the quarter. Nuvama observed that while subscriber losses have moderated to pre-tariff hike levels, they still impede the company's recovery. The delay in debt funding remains a major overhang on VIL's viability. The brokerage cut its FY26E and FY27E EBITDA estimates by 7% and 4% respectively, citing further dilution from the government's equity holding. VIL is valued at 11x FY27E EV/EBITDA. Also read: Yes Bank shares crack 7% after 3% equity changes hands via block deals Macquarie: Underperform| Target price: Rs 6.50 Global brokerage firm Macquarie reported that VIL posted a weak set of Q4FY25 results, missing estimates due to continued subscriber erosion and higher interest burden. VI's net subscriber base declined by 1.6 million quarter-on-quarter to approximately 198 million, while ARPU rose marginally by 0.6% to Rs 164. Macquarie noted that the company's government dues stood at around US$22.5 billion, with US$4.3 billion of spectrum dues converted to equity, leading to a 49% government shareholding. In contrast, bank and financial liabilities were lower at US$0.3 billion, and the cash balance stood at US$1.2 billion. The board has approved a Rs 200 billion (US$2.3 billion) fundraise via equity, debt, or a hybrid route. The brokerage highlighted that the ongoing erosion in subscribers indicates persistent structural challenges, and despite the government being the largest shareholder, any further equity infusion remains uncertain. Macquarie continues to see industry-wide tailwinds from tariff hikes benefiting Bharti Airtel and Reliance Industries, which it maintains as Outperform-rated stocks. Motilal Oswal: Sell| Target price: Rs 6.5 Motilal Oswal also highlighted that Vodafone Idea continues to lose market share to peers due to weaker ARPU conversion, a weaker subscriber mix, and high churn rates. The telco is planning a significant capex cycle of Rs 50,000–Rs 55,000 crore over the next two to three years to bridge the network gap with competitors. However, the brokerage noted that regaining lost subscribers will remain challenging, given rivals' stronger cash flows and deeper financial reserves. Motilal Oswal added that Vodafone Idea's network investments are heavily reliant on fresh debt funding, which itself hinges on continued AGR relief and government support, with an estimated Rs 20,000 crore annual cash shortfall projected through FY26–31. Stabilizing the subscriber base and securing further government relief are seen as crucial to the company's long-term survival. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) ETMarkets WhatsApp channel )
Time of India
4 days ago
- Business
- Time of India
Engaged with govt to find solution to AGR issue post plea dismissal by SC: Vodafone Idea CEO
Vodafone Idea (VIL) on Monday said it is engaged with the Centre to find a solution to the AGR issue , with CEO Akshaya Moondra stating he sees no reason why the government should be constrained in any way to offer relief. During VIL's investor call post Q4 and FY25 earnings, Moondra said the Average Revenue Per User (ARPU) in India is the lowest globally, and that industry's returns are below cost of capital. The VIL top boss stressed that the industry needs to move towards a pricing model, where heavy data users contribute more proportionally to their higher usage, than the current pricing structure -- where incremental data usage comes at an extremely low, unsustainable price. On the AGR issue, Moondra said the telco continues its engagement with the government to find a solution. "As far as the government relief is concerned, I think we are engaged with the government... what the government will do, I cannot comment on their behalf. But definitely post the judgment, we continue with our engagement with the government to find a solution to the AGR matter," he said. Live Events On whether the SC's move would allow the government to offer support to the company or specific clarity would be needed for the Centre to proceed further, Moondra said: "So our view is that the government can do..." At the time when the 2021 reforms package was announced, there had been some PIL filed in the Supreme Court , Moondra said and added that even then, the apex court had taken the view that it is a policy matter which is within the purview of the government. "And that time, also the Supreme Court had, when their final order was given, they had stated to the effect that this is a policy matter which is within the purview of the government, and they would not interfere in it. So in some ways, if you look at the reforms package of September 2021, the government has taken the initiative, and I see no reason why the government should be constrained in any way to offer relief, which it decides to do," he claimed. Moondra clarified that the government does not intend to take a position in the company's board given its 49 per cent stake at present, post recent dues to equity conversion. "There is no intent to take up any board seat, the shareholding of the government is a consequence of the government providing support in reducing dues," he said. The comment assume significance as the embattled telecom operator had been seeking waiver of around Rs 30,000 crore AGR dues, as it struggles with statutory liabilities and dwindling subscriber base -- as per the latest subscriber data by TRAI, the mobile customer base of VIL shrunk 6.47 lakh in April to 20.47 crore. Last month, the Supreme Court dismissed its plea, dealing a big blow to the crisis-ridden telecom operator. Just weeks before that, VIL had sent an SOS to the telecom department stating that without the government's timely support on adjusted gross revenue or AGR, it will not be able to operate beyond FY26, as the bank funding discussions will not move forward. Debt-ridden telco Vodafone Idea on Friday reported narrowing of losses for the March quarter to Rs 7,166.1 crore and its board greenlit fundraising of up to Rs 20,000 crore subject to shareholders' approval and statutory nods. The revenue for the fourth quarter (Q4FY25) rose 3.8 per cent year-on-year to Rs 11,013.5 crore. The Q4 losses narrowed to Rs 7,166.1 crore for the just-ended quarter, from Rs 7,674.6 crore a year ago. For the full year FY25, the losses narrowed to Rs 27,383.4 crore, as against Rs 31,238.4 crore in the previous fiscal. The full year revenue rose 2.1 per cent to Rs 43,571.3 crore. The company had said that the up to Rs 20,000 crore fundraising in one or more tranches will be "either by way of further public offer or private placement or through any other permissible mode as may be considered appropriate..." PTI MBI BAL DRR Economic Times WhatsApp channel )
