Hold Vodafone Idea; target of Rs 7: ICICI Securities

ICICI Securities research report on Vodafone Idea

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, VIL 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 conversion of debt of INR 370bn into equity provides immediate relief and also helps to increase debt funding discussion intensity with banks, which is key for network expansion.

Outlook

We cut our FY26E/FY27E EBITDA by 1% each and reduce our TP to INR 7 (from INR 8), based on an FY27E EV/EBITDA multiple of 15x (unchanged). Maintain HOLD.

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