IDEA
Mid CapVodafone Idea Limited
Telecom
Vodafone Idea Limited (Vi) is an Indian telecom operator providing mobile and enterprise connectivity services. The company is focused on network expansion (4G/5G), ARPU growth through premiumization, and subscriber base stabilization, supported by promoter commitment and a recent AGR liability reduction.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 2/6 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 25/100Rev +3% YoY · margin expansion
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹11,332 Cr | +2.9% | +0.1% |
| EBITDA | ₹4,889 Cr | +4.9% | +1.5% |
| Operating margin | 43.0% | +100 bps | +0 bps |
| PAT | ₹51,970 Cr | NDF | NDF |
| PAT margin | 458.6% | +52368 bps | +50529 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 sees subscriber base stabilization, 2.9% YoY revenue growth, and 8.3% YoY ARPU expansion to Rs. 190. AGR liability reduced by Rs. 23,649 Cr, leading to a Q4 net profit of Rs. 51,970 Cr. Company targets 3x EBITDA and double-digit revenue growth over 3 years.
Management claims a decisive step forward with subscriber stabilization, consistent ARPU growth, and significant AGR liability reduction. The planned Rs. 45,000 Cr capex and promoter equity infusion are critical for network expansion and achieving ambitious 3x EBITDA and double-digit revenue growth targets.
ARPU Upgrade & Premiumization
ARPU increasing for 19 consecutive quarters, driven by premiumization and improving 4G/5G subscriber mix. Non-stop hero proposition growing 25% QoQ.
Network Expansion & 5G Rollout
Deployment of Rs. 16,000 Cr over 6 quarters, adding 30,000 unique broadband towers. 5G services live in over 80 cities across 17 circles.
Subscriber Base Growth
Targeting 0.5%-0.6% churn reduction, adding 125M new population via 4G sites, increasing MNP share, and improving quality of customer acquisitions.
Enterprise Business Momentum
Strong momentum across Connectivity, Cloud, IoT, Business Communications, Mobility, and Cybersecurity with increasing enterprise adoption.
Broadband Towers
Added over 17,300 new unique broadband towers this year. Over 30,000 unique broadband towers added in last 6 quarters.
Broadband Layers & 4G Capacity
Expanded capacity by adding over 126,000 new broadband layers. Expanded 4G capacity by over 27%.
4G Population Coverage
Improved 4G population coverage over 86% on pan India basis.
5G Footprint
5G services now live in over 80 cities across all 17 circles where 5G spectrum is held.
AGR Liability Resolution
AGR dues finalized at Rs. 64,046 Cr (reduction from Rs. 87,695 Cr), providing long-term clarity for cashflows and improving balance sheet.
Promoter Commitment & Equity Infusion
Mr. Kumar Mangalam Birla as Non-Executive Chairman. Aditya Birla Group committed to infuse additional equity of Rs. 4,730 Crore.
Credit Rating Upgrade
ICRA BBB rating with Positive outlook assigned in March 2026, an important enabler for engagement with lenders.
Industry Growth Drivers
Fast-growing economy, young population, rising technology adoption, lower rural tele-density, and increasing smartphone penetration drive connectivity needs.
Smartphone Price Increase
Management noted a temporary dip in smartphone sales due to RAM shortage, but does not see it as a long-term concern for 2G to 4G migration.
Debt Funding Closure
Rs. 25,000 Cr funded facility and Rs. 10,000 Cr non-funded facility from an SBI-led consortium is critical for capex, but no timeline for closure given.
Sustained ARPU Growth
Significant ARPU discount vs. peers; bridging the gap relies on differentiated offerings, 2G to smartphone upgrades, and data quota upgrades.
Network Opex Inflation
Efficiency efforts have offset rollout cost increases, but some inflation is expected going forward as benefits are lapped.
Customer Churn
Churn percentage is still higher than industry peers, despite moderation in areas with network investment.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company reports both YoY for annual performance and ARPU trends, and QoQ for sequential momentum in revenue, subscriber stabilization, and Non-stop Hero proposition growth, reflecting both long-term trends and recent operational improvements.
Subscriber Base
Stabilized at 192.8 million customers in Q4FY26 vs. last quarter, a first since merger. Registered improvement in subscriber numbers in Feb and March.
Customer ARPU
Increased from Rs. 175 in Q4FY25 to Rs. 190 in Q4FY26 (8.3% YoY growth). Increased for 19 consecutive quarters.
4G/5G Subscriber Mix
Stood at 66.9% in Q4FY26, up from 63.8% in Q4FY25. Closed with 128.9 million 4G/5G subscribers, up from 126.4 million in Q4FY25.
Data Usage (per day)
Increased YoY by over 30% to 83.0 Petabyte/day in Q4FY26 from 63.8 Petabyte/day in Q4FY25. Average data usage by 4G/5G subscriber improved 27.2% YoY to 20.2 GB.
Three-Year Targets
Unambiguous targets: sustained net customer addition, double-digit revenue growth, and 3x EBITDA.
Capex Commitment
Committed Rs. 45,000 Cr investment over the next three years, with greater intensity expected from Q1 FY27 onwards.
Cash EBITDA Margin Ambition
Aim to significantly uptick revenue and flow through to cash EBITDA margin, targeting north of 35% in the next 3-4 years.
Brand Reappraisal
Opportunity to reappraise the Vi brand and its positioning, now that the AGR overhang is conclusively behind us.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Debt Funding Closure | Deeply engaged with SBI-led consortium for Rs. 25,000 Cr funded and Rs. 10,000 Cr non-funded facilities. | Timely closure of the debt funding to support planned capex intensity. |
| Capex Intensity | FY26 investment at Rs. 8,742 Crores. Rs. 45,000 Crores capex target over next three years. | Significant increase in capex from Q1 FY27 and subsequent quarters as planned. |
| Cash EBITDA Margin | Q4 FY26 cash EBITDA margin at 20.5%. | Progress towards the ambition of north of 35% cash EBITDA margin in the next 3-4 years. |
| Subscriber Addition | Subscriber base stabilized at 192.8 million in Q4 FY26, with positive net additions in Feb and March. | Sustained net customer addition and reduction in churn percentage. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
The company expects to meet the H1 capex target of INR 50-60 billion by September 2025.
"we should meet that target by September '25."
The company will accelerate capex plans of Rs. 500-550 billion over three years for network investment, once bank debt is tied up.
"will accelerate broader capex plans of Rs. 500–550 billion over three years... once we tie up the bank debt."
India’s digital economy is projected to contribute nearly one-fifth of the country’s overall economy by 2030.
"By 2030, India’s digital economy is projected to contribute nearly one-fifth"
Subscriber metrics will continue to improve due to population coverage, 5G rollout, product interventions, and better customer service.
"we are quite confident that our subscriber metrics will continue to improve"
Outcome check: Revenue YoY averaged 2.4% across 2 later quarter(s).
5G services expansion to additional key cities across all 17 priority circles is planned by September 2025.
"Further expansion to additional key cities across all our 17 priority circles is planned by September 2025."
The company will continue to focus on building a digital ecosystem with partners to deliver enhanced customer value and incremental monetization opportunities.
"This will help us deliver enhanced customer value as well as provide incremental monetization opportunities."
Outcome check: Revenue YoY averaged 2.4% across 2 later quarter(s).
Trend score and candlestick chart
56NeutralSMA20 +22.7% / mo · near 52W high
Technical chart
IDEAweekly · 3Y+79.4%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 65. Wait for confirmation.
- SMA20 rising (~18.5% over last month) — short-term momentum positive.
- RSI(14) at 65 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 7% off 52W high · 131% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 8.5%.
- Piotroski is strong at 7/9.
- Fair-value margin of safety is positive at 92.6%.
Main drags
- Altman Z is -0.1, in distress territory.
- Penalty bucket subtracts 1 points.
- Quality is weaker at 0/20; verify the latest quarterly trend.
Telecom valuation: EV/EBITDA against ARPU, debt, and capex
Telecom needs enterprise-value and cash-flow framing because leverage is structurally important.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Management has 100% delivered/partly-delivered outcomes on 2 checked claims. It ranks around the 64th percentile of the scored universe and 67th percentile within Telecom. Main check: financial discipline is weak at 38/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Interest coverage is 0.9x.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Telecom: 67th pctile, median 67 · Mid: 41st pctile, median 76
107 documents indexed, but claim history is not strong enough yet.
2/6 claims checked · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is 8.5%.
- ▸9 years of positive FCF.
- ▸Debt/equity is 0.00.
Trust risks
- ▸Interest coverage is 0.9x.
- ▸ROCE is low at -1.6%.
- ▸ROCE trend is -11.3%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- —
- P/B
- —
- EV/EBITDA
- 8.47
- Market Cap
- 155806.00Cr
Profitability
- ROE
- —
- ROCE
- -1.60%
- ROA
- 18.03%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 1.00%
- EPS 5Y
- 228.96%
- Revenue 3Y
- 2.00%
- EPS 3Y
- 6.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- 0.88×
- Altman Z
- -0.08
- Book Value
- -3.30
Cash Flow
- FCF Yield
- 8.54%
- FCF Positive Y
- 9/5
- OCF
- 19411.00 Cr
- EPS TTM
- 3.19
Shareholding
- Promoter Hold
- 25.64%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 90%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Telecom — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.