Neutral Vodafone Idea; target of Rs 10: Motilal Oswal

Neutral

Motilal Oswal's research report on Vodafone Idea

Vodafone Idea’s (Vi) management laid out ambitious goals of double-digit revenue growth and increasing cash EBITDA to 3x over FY26-29 (from ~INR90b in FY26), with heavy lifting done by improved subscriber trends. The company has earmarked a capex plan of ~INR450b over FY26-29 to reach parity with peers on 4G network coverage in 17 priority circles and roll out seamless 5G across urban markets to drive consistent subscriber additions, with ~70% of the capex likely on radio/tower addition.

Outlook

We reiterate our Neutral rating on Vi with a revised TP of INR10 (earlier INR11), based on DCF implied ~13x FY28E EV/EBITDA, implies ~21.5x FY28E pre IND AS EBITDA, which is at a significant premium to Vi’s larger peers.

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