Vi shares extend rally even as analysts trim target; here's your strategy

Vi shares rose for a second straight session on Tuesday, despite analysts trimming target prices on concerns over weak market share

Don't want to miss the best from Business Standard?

Shares of Vodafone Idea (Vi) extended the previous session's gains on Tuesday, even as analysts slashed target prices, citing its weak market share outlook. 

 

The telecom major's stock rose as much as 2.4 per cent to ₹6.62 per share. However, the stock pared gains to trade 2 per cent higher, compared to a 0.25 per cent advance in the benchmark Nifty50 as of 11:12 AM. 

 

The stock rose nearly 9 per cent on Monday, a day after the company reported its June quarter results. The shares have fallen 17 per cent so far this year, compared to a 5.3 per cent gain in Nifty50. The company has a market capitalisation of ₹ 71,398.06 crore as per BSE data.  

  Track LIVE Stock Market Updates Here

Vodafone Idea Q1 results 

The telecom major reported a consolidated loss after tax of ₹6,608 crore in Q1FY26, up from ₹6,432 crore a year earlier. However, on a sequential basis, loss narrowed from ₹7,166.1 crore in Q4FY25.

 

Its revenue from operations, however, grew 4.9 per cent year-on-year to ₹11,022.5 crore in Q1FY26 from ₹10,508.3 crore in Q1FY25. Sequentially, revenue increased slightly from ₹10,948.3 crore in Q4FY25.

 

The company said that its Average Revenue Per User (Arpu) for the quarter stood at ₹177, up 15 per cent from ₹154 in Q1FY25. The company’s capital expenditure for the quarter was ₹2,440 crore, while bank debt declined to ₹1,930 crore as of June 30, 2025.

 

Analysts' views after Vi's earnings call

Motilal Oswal said Vi continues to lose market share despite equity infusion and accelerated network capital expenditure, as tariff hikes are not translating into higher Arpu due to its weaker subscriber mix and elevated churn.

 

The brokerage cut its revenue and Ebitda estimates for FY27 and FY28 by around 4-5 per cent each, factoring in higher subscriber declines. It reiterated a 'Sell' rating on the stock and cut the target price to ₹6 per share.

 

Motilal Oswal also highlighted that Vi’s planned capital expenditure remains at risk in the absence of relief on adjusted gross revenue (AGR) dues and closure of debt raising, which could further aggravate subscriber losses.

 

Centrum Broking said Vodafone Idea’s subscriber losses moderated in the June quarter compared with earlier quarters, reflecting early gains from network investments and distribution efforts. However, the overall erosion of the subscriber base continues and remains a key challenge, it said. Centrum maintained a 'Reduce' rating on the stock with a revised target price lower to ₹6.5 per share.

 

Nuvama Institutional Equities said the recent change of chief executive officer at Vi will be a key factor to watch in terms of its impact on performance. While improvement in subscriber losses and ARPU is necessary, Nuvama stressed that balance sheet repair has become vital for the company’s survival. The brokerage maintained a Hold rating and cut the target to ₹7.