Sell Vodafone Idea; target of Rs 6: Emkay Global Financial

Emkay Global Financial is bearish on Vodafone Idea has recommended sell rating on the stock with a target price of Rs 6 in its research report dated October 27, 2025.

Broker Research

October 28, 2025 / 14:28 IST

sell

26 Aug, 2025 12:21

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Emkay Global Financial' research report on Vodafone Idea

Per media reports, the Supreme Court (SC) has permitted the Centre to reconsider the issue of reassessment for Vodafone Idea (VI)’s AGR dues. This allows the government (GoI) to grant significant relief on AGR dues to VI. However, only ~Rs0.76trn of VI's total debt of ~Rs1.96trn pertains to AGR liabilities. Even excluding AGR dues, VI’s debt of ~Rs1.18trn (largely pertaining to spectrum payment) is high, considering the current EBITDA (Rs92bn in FY25, excluding IndAS-116 impact).

Outlook

Hence, we expect the GoI to take a holistic view on the solvency of the company and, accordingly, structure the relief. While the aforementioned permission by the SC improves VI’s chances of revival, given high leverage, high valuations, and lack of clarity on GoI stance on spectrum debt, we retain SELL on VI and TP of Rs6. On the other hand, we expect the improved chances of survival for VI to aid Indus Towers’s valuations.

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