Vodafone Idea’s stock inched up 1.12% to ₹10.86 in Monday’s trade after the company reported a notable improvement in its quarterly financials. The telecom operator narrowed its net loss by 22% year-on-year, a positive sign that boosted investor sentiment despite muted revenue growth and slightly lower EBITDA. The loss reduction was enough to lift the stock, reflecting cautious optimism about the company’s gradual stabilization.The move came as the company reported a narrower net loss, higher revenue, higher ARPU, and growth in 4G/5G subscribers. Vodafone Idea also continued to invest in network expansion, with capex at ₹17.5 billion for the quarter.
Motilal Oswal remained 'Neutral' on the stock, while noting that the telecom company is slightly ahead, driven by better enterprise revenue. It noted that the firm's earnings came above its estimates. The domestic brokerage added that Vi has expanded its 5G services to 29 cities across all 17 priority circles and plans to expand 5G services to more cities based on customer demand and 5G handset penetration. Citi maintained a 'Buy' rating on the stock, with a target price of Rs 14 per share.
This implies an upside potential of more than 47 percent for what the brokerage categorises as a "high-risk stock". The international brokerage said that the Supreme Court's clarification on AGR dues could pave the way for the telecom company to complete its long-pending fundraise, CNBC-TV18 reported. "Progress on the debt raise and clarity around the contours of the government's relief package will be key monitorables going ahead," Citi added. Vodafone Idea shares have gained more than 11 percent in the past one month, and over 37 percent in the past six months.