CLSA has reiterated an Outperform rating on Vodafone Idea with a target price of ₹8 following an encouraging update from the company’s Q4FY25 earnings call.
Vodafone Idea reported its highest quarterly capex spend since the merger, with total planned capex pegged at ₹500–550 billion (around $6 billion). The telco’s overall broadband site count has reached 494,596, and it aims to launch 5G across 17 circles by August 2025.
Management highlighted that Q4FY25 revenue of ₹110 billion marked the highest daily revenue for the company in five years, with ARPU expected to rise further as additional tariff hikes are essential to business sustainability.
The board has approved a ₹200 billion ($2.4 billion) fundraising resolution, with management currently focused on securing bank financing. Vodafone Idea also remains engaged with the government regarding relief on AGR dues, despite a recent adverse Supreme Court verdict.
Disclaimer: The views and target prices mentioned in this article are as stated by CLSA. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
