Neutral Vodafone Idea; target of Rs 11: Motilal Oswal

Motilal Oswal recommended Neutral rating on Vodafone Idea with a target price of Rs 11 in its research report dated January 09, 2026.

Broker Research

January 12, 2026 / 13:23 IST

Buy

Motilal Oswal's research report on Vodafone Idea

We believe the relief measures indicate GoI’s steadfast commitment to maintaining a 3+1 market structure in the Indian telecom industry. The relief measures are a significant positive for Vi, with the NPV of AGR dues cut by ~73% to ~INR240b, on our estimates, with potential for further relief on the base AGR dues. This should enable Vi’s long-pending debt raise and increase capex over the medium term. However, Vi still owes ~INR1.23t to GoI toward deferred spectrum liabilities, with large ~INR62b/INR166b/INR270b annual repayments over FY27/FY28/FY29-32, and obtaining a similar relief (interest waiver, further deadline extensions) on the same would not be straightforward. Further, despite a potential increase in capex, regaining/retaining market share would remain a tall ask, given Vi’s competitors’ superior offerings and FCF generation.

Outlook

We reiterate Neutral on Vi with an unchanged TP of INR11/share, premised on 14x FY28 reported EV/EBITDA (implies ~22x FY28 pre-INDAS EV/EBITDA), a significant premium to larger peers.

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