Vodafone Idea Jumps 6% as Investors Eye Recovery; Analysts Warn of Risks Ahead

Vodafone Idea was among the top gainers in Monday's trading session. At 12pm,  Vodafone Idea was trading at Rs 7.61, a 6% rise. Vodafone Idea's financial performance showed a trend of increasing revenue but continued net losses.The yearly financial data indicates that Vodafone Idea's revenue has increased from Rs 41,952 Crore in 2021 to Rs 43,571.30 Crore in 2025. However, the company has consistently reported net losses, although the losses have decreased from Rs -44,464.50 Crore in 2021 to Rs -27,385.20 Crore in 2025.

Quarterly results show a fluctuating revenue trend, with sales ranging from Rs 10,508.30 Crore to Rs 11,117.30 Crore. Net losses have also been consistent, ranging from Rs -6,432.20 Crore to Rs -7,672.00 Crore.  Leading brokerage firm UBS has downgraded its rating on  Vodafone Idea to Neutral from Buy for a target price of Rs 8.50. UBS said that Vodafone Idea's valuations are expensive at FY27E EV/EBITDA of 11x.Vodafone Idea shares on Friday closed at Rs 7.17. The target implies an upside of nearly 20 per cent.UBS added that due to delays in both raising debt and government measures on providing relief to the Vodafone Idea, the company has continued to lose market share.

There has been a persistent back-and-forth between the government and India’s third-largest telecom operator, Vi, since March this year, when the Ministry of Communications became its largest shareholder by converting ₹36,950 crore worth of spectrum auction dues into equity. While the move provided significant relief to the Aditya Birla Group and Vodafone group-promoted company, it is not sufficient to keep it afloat for long. Analysts warn that Vi still needs active government support to “remain a going concern”. It also requires fresh bank funding to finance its expansion plans and maintain relevance in a market dominated by Reliance Jio and Bharti Airtel.