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 January 01, 2026.

Broker Research

January 01, 2026 / 14:07 IST

sell

Emkay Global Financial' research report on Vodafone Idea

According to media reports, the Union Cabinet has granted Vodafone Idea (VI) a 5-year interest-free moratorium on its Rs877bn AGR dues before FY18 which will be payable over FY32-41. AGR dues pertaining to FY18 and FY19 shall be payable over FY26-31 without change. Contrary to the street's expectations of at least a 50% waiver, no waiver on the pending dues linked to AGR was provided by the Cabinet. Also, DoT will form a committee for the reassessment of AGR dues in 6-8 months which will include reassessment of the frozen AGR dues based on audit reports. This leaves scope for further reduction in the AGR liability for the company. While the relief package addresses AGR dues, VI also has ~Rs1.2trn of deferred payment obligations toward spectrum, with significant scheduled payments between FY26 and FY44. Current EBITDA is insufficient to meet the capex or the spectrum debt repayment requirement.

Outlook

The company will need additional relief/funding to alleviate such challenges. We maintain SELL on VI with TP of Rs 6.

For all recommendations report, click here