Hold Vodafone Idea: target of Rs 7: ICICI Securities

ICICI Securities's research report on Vodafone Idea

Vodafone Idea (VIL) has appointed Mr. Abhijit Kishore as the new CEO. He has been serving as VIL’s COO since Mar’15. Mr Akshaya Moondra’s (outgoing CEO) term of three years expires on 18th Aug’25. VIL’s Q1FY26 ARPU rose 0.6% QoQ (Bharti 2.1%, RJio +1.3%), while subs loss was 0.5mn, which has shown signs of improvement, though modest, post acceleration in capex. VIL has funding to incur elevated capex only till Q2FY26; its future capex is dependent on closing the funding arrangement which has been in the process for a while. VIL is also hopeful of a resolution on AGR matter before its first EMI due in Mar’26, remains critical for establishing its going concern status.

Outlook

Retain FY26/27E EBITDA and TP of INR 7, based on FY27E EV/EBITDA multiple of 15.5x (unchanged). Maintain HOLD.