Citi has maintained its buy rating on Vodafone Idea Ltd (Vi) with a high-risk tag and a target price of ₹14 per share, following a steady Q2FY26 performance and a key legal development that could improve the company’s balance sheet outlook.
Revenue rose 1.6% quarter-on-quarter to ₹112 billion, ahead of expectations for flattish growth, while cash EBITDA (excluding IndAS impact) increased 3% sequentially to ₹22.5 billion, beating estimates by 2.5%. The company’s net loss narrowed to ₹55 billion from ₹66 billion in the previous quarter, aided by lower interest expenses. However, capex fell 28% quarter-on-quarter due to delays in finalising debt funding.
Citi said the recent Supreme Court clarification allowing the government to reassess and reconcile all adjusted gross revenue (AGR) dues up to FY17 — including penalties and interest — could mark a turning point for Vi. The brokerage believes this development paves the way for the company to complete its long-pending debt raise and possibly secure additional government relief measures.
Progress on funding and clarity on policy support will be key near-term triggers, Citi added.
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