Motilal Oswal's research report on Vodafone Idea
Vodafone Idea’s (Vi) reported EBITDA declined 1% QoQ (vs.+2% QoQ for RJio/Bharti India wireless), which was above our estimates due to lower network opex (-2% QoQ, energy efficiencies) and SG&A costs (-1% QoQ). Operationally, subscriber losses moderated significantly (-1.6m QoQ vs. ~5m+ net losses each in 2Q/3Q). However, data subscriber additions (excl. M2M) remained weak, despite acceleration in 4G/5G rollouts. Wireless revenue declined 1% QoQ (vs. 1-2% QoQ uptick for peers) as residual benefits from the tariff hike were partly offset by subscriber declines and two fewer days QoQ in 4Q.
Outlook
Our revenue and EBITDA estimates for FY26-27E remain broadly unchanged. We reiterate our SELL rating on Vi with an unchanged TP of INR6.5, based on DCF implied ~13x Jun’27E EV/EBITDA.
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