Vodafone Idea, a prominent telecom service provider in India, offers a range of services including Mobility and Long Distance communication, along with the trading of handsets and data cards. Formed from the merger of Vodafone India and Idea Cellular, the company has a significant presence in the Indian telecommunications market.
In this article, we’ll explore everything about Vodafone Idea, from its history and services to its market strategies and future prospects, providing a comprehensive overview of one of India’s leading telecom giants.
Vodafone Idea: Leading the Charge in India’s Telecom and IoT Revolution
Vodafone Idea, now rebranded as ‘VI’ since September 2020, stands as a key player in the Indian telecom industry with a diverse range of business services including voice, broadband, content, enterprise services, and various VAS offerings like entertainment, SMS, and utilities. Holding the largest spectrum in India, VI boasts approximately 1,850 MHz across various circles, ensuring extensive coverage in over 487,000 towns and villages. Its robust infrastructure includes around 180,000 unique GSM cell sites, 457,000 broadband sites, and 370,600 km of fibre optic network.
Despite a decline in its subscriber base from 311 million in 2019 to 272 million in 2020, VI maintains a significant market presence with a 27% market share and a 24% revenue share. The company is particularly strong in circles like Kerala and Mumbai, where it holds leading market shares of 46% and 30%, respectively. Additionally, VI is a market leader in the IoT segment, commanding a 52% share of the connectivity IoT market in India.
Vodafone Idea Q4 FY24 Results Summary
- Net loss widened to Rs 7,674 crore from Rs 6,418.9 crore in Q4 FY23.
- Revenue from operations slightly increased to Rs 10,606 crore, compared to Rs 10,531 crore in the same quarter last fiscal.
- ARPU rose to Rs 146 from Rs 145 in Q3 FY24 and Rs 135 in Q4 FY23.
- Achieved the highest post-merger quarterly EBITDA of Rs 2,180 crore, marking a 5.4% YoY increase.
- EBITDA margin improved to 40.9% from 40% YoY.
- CEO Akshaya Moondra highlighted consistent revenue and EBITDA growth, despite lower investments, and noted 11 consecutive quarters of ARPU and 4G subscriber growth.
- Successfully raised Rs 18,000 crore through India’s largest follow-on public offering.
- Currently in talks to secure Rs 25,000 crore in debt funding and Rs 10,000 crore in non-fund-based facilities.
- Bank exposure reduced by approximately Rs 34,600 crore following the telecom reforms package in September 2021.
- Planned capex of Rs 50,000 crore to Rs 55,000 crore over the next 3 years to expand 4G and launch 5G services.
- Completed 3G shutdown in 6 circles, refarming spectrum to 4G.
- 4G subscriber base increased to 126.3 million from 122.6 million YoY.
- Total subscriber base stood at 212.6 million.
- Total data traffic for the quarter grew by 4.3% YoY.
Below are the trading platforms that you can use to purchase Vodafone Idea shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| June 2024 | 18.47 | 16.06 |
| July 2024 | 18.28 | 15.90 |
| August 2024 | 19.01 | 16.53 |
| September 2024 | 19.78 | 17.20 |
| October 2024 | 19.39 | 16.86 |
| November 2024 | 19.97 | 17.36 |
| December 2024 | 20.47 | 17.80 |
Vodafone Idea’s share price is expected to range between ₹16.06 and ₹20.47 in 2024, with the current price at ₹17.1 as of June 21, 2024. The company boasts a market cap of ₹1,16,344 crore, with the stock hitting a high of ₹18.4 and a low of ₹7.15 over the past year.
Despite these figures, Vodafone Idea faces financial challenges, including a negative book value of ₹-20.8, a ROCE of -3.56%, and no dividend yield. The stock’s face value is ₹10.0, reflecting the company’s ongoing efforts to stabilize and grow in a competitive market.
| When | Maximum Price | Minimum Price |
| January 2025 | 20.88 | 16.06 |
| February 2025 | 21.41 | 16.47 |
| March 2025 | 22.25 | 17.11 |
| April 2025 | 21.81 | 16.78 |
| May 2025 | 21.18 | 16.29 |
| June 2025 | 22.13 | 17.02 |
| July 2025 | 21.70 | 16.69 |
| August 2025 | 22.37 | 17.21 |
| September 2025 | 23.15 | 17.81 |
| October 2025 | 23.75 | 18.27 |
| November 2025 | 24.35 | 18.73 |
| December 2025 | 24.95 | 19.20 |
Vodafone Idea’s share price in 2025 is projected to range between ₹16.06 and ₹24.95, with a steady increase throughout the year. The Supreme Court’s 2020 ruling mandates telecom companies to pay 10% of their total AGR dues by March 2021, with the remaining balance to be paid in annual installments from April 2021 to April 2031.
Vodafone Idea’s AGR dues amount to approximately ₹58,250 crore up to FY17, of which the company has already paid around ₹7,850 crore. Despite these financial obligations, Vodafone Idea is aiming for steady growth, reflecting a positive outlook for the company’s stock performance in 2025.
| When | Maximum Price | Minimum Price |
| January 2026 | 25.70 | 19.77 |
| February 2026 | 26.36 | 20.28 |
| March 2026 | 27.39 | 21.07 |
| April 2026 | 26.85 | 20.66 |
| May 2026 | 26.07 | 20.05 |
| June 2026 | 27.24 | 20.96 |
| July 2026 | 26.71 | 20.55 |
| August 2026 | 27.54 | 21.18 |
| September 2026 | 28.50 | 21.92 |
| October 2026 | 29.24 | 22.49 |
| November 2026 | 29.97 | 23.05 |
| December 2026 | 30.72 | 23.63 |
Vodafone Idea’s share price in 2026 is projected to range between ₹19.77 and ₹30.72, showing a strong upward trend throughout the year. The company has been managing its financial obligations, including AGR dues amounting to ₹58,250 crore up to FY17, with around ₹7,850 crore already paid. In FY20, Vodafone Idea raised approximately ₹25,000 crore through a rights issue, issuing around 2,000 crore equity shares at ₹12.5 each.
Additionally, the company divested its 11.15% stake in Indus Towers Ltd for ₹3,760 crore in 2020, facilitating the merger of Indus Towers Ltd and Bharti Infratel Ltd. These financial maneuvers reflect Vodafone Idea’s strategic efforts to stabilize and grow in a competitive market
| When | Maximum Price | Minimum Price |
| January 2027 | 31.33 | 24.10 |
| February 2027 | 32.14 | 24.72 |
| March 2027 | 33.39 | 25.69 |
| April 2027 | 32.74 | 25.18 |
| May 2027 | 31.78 | 24.45 |
| June 2027 | 33.21 | 25.55 |
| July 2027 | 32.56 | 25.05 |
| August 2027 | 33.57 | 25.82 |
| September 2027 | 34.74 | 26.73 |
| October 2027 | 35.65 | 27.42 |
| November 2027 | 36.54 | 28.11 |
| December 2027 | 37.45 | 28.81 |
Vodafone Idea’s share price in 2027 is expected to range between ₹24.10 and ₹37.45, reflecting a continued upward trend. In August 2018, Vodafone Group Plc and Idea Cellular Ltd merged to form Vodafone Idea Ltd, issuing equity shares worth approximately ₹4,375 crore to the Vodafone Group. Post-merger, Vodafone Group held a 45.2% stake, while Aditya Birla Group held 26%.
The company has focused on post-merger integration, consolidating spectrum and radio access networks in 18 out of 22 service areas and achieving 92% consolidation across districts. These efforts, alongside strategic financial moves, demonstrate Vodafone Idea’s commitment to growth and stability in the telecom sector.
| When | Maximum Price | Minimum Price |
| January 2028 | 38.20 | 29.39 |
| February 2028 | 39.18 | 30.14 |
| March 2028 | 40.71 | 31.31 |
| April 2028 | 39.91 | 30.70 |
| May 2028 | 38.75 | 29.81 |
| June 2028 | 40.49 | 31.15 |
| July 2028 | 39.70 | 30.54 |
| August 2028 | 40.93 | 31.48 |
| September 2028 | 42.36 | 32.58 |
| October 2028 | 43.46 | 33.43 |
| November 2028 | 44.55 | 34.27 |
| December 2028 | 45.66 | 35.12 |
- January 2028: ₹29.39 (Minimum)
- December 2028: ₹45.66 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2029 | 46.57 | 35.83 |
| February 2029 | 47.77 | 36.74 |
| March 2029 | 49.63 | 38.18 |
| April 2029 | 48.66 | 37.43 |
| May 2029 | 47.24 | 36.34 |
| June 2029 | 49.37 | 37.97 |
| July 2029 | 48.40 | 37.23 |
| August 2029 | 49.89 | 38.38 |
| September 2029 | 51.64 | 39.72 |
| October 2029 | 52.98 | 40.76 |
| November 2029 | 54.31 | 41.78 |
| December 2029 | 55.67 | 42.82 |
- January 2029: ₹35.83 (Minimum)
- December 2029: ₹55.67 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2030 | 56.78 | 43.68 |
| February 2030 | 58.23 | 44.80 |
| March 2030 | 60.51 | 46.54 |
| April 2030 | 59.32 | 45.63 |
| May 2030 | 57.59 | 44.30 |
| June 2030 | 60.18 | 46.29 |
| July 2030 | 59.00 | 45.39 |
| August 2030 | 60.83 | 46.79 |
| September 2030 | 62.96 | 48.43 |
| October 2030 | 64.59 | 49.69 |
| November 2030 | 66.21 | 50.93 |
| December 2030 | 67.86 | 52.20 |
- January 2030: ₹43.68 (Minimum)
- December 2030: ₹67.86 (Maximum)
Financial Condition of Vodafone Idea: Last 5 Years
| Financials | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|---|
| Sales (Rs. Crores) | 37,092 | 44,958 | 41,952 | 38,516 | 42,177 | 42,652 |
| Expenses (Rs. Crores) | 32,976 | 30,042 | 25,006 | 22,547 | 25,424 | 25,531 |
| Operating Profit (Rs. Crores) | 4,116 | 14,916 | 16,946 | 15,968 | 16,753 | 17,120 |
| OPM % | 11% | 33% | 40% | 41% | 40% | 40% |
| Other Income (Rs. Crores) | 1,789 | -36,964 | -19,563 | 363 | 354 | 869 |
| Interest (Rs. Crores) | 9,545 | 15,393 | 17,998 | 20,981 | 23,354 | 25,766 |
| Depreciation (Rs. Crores) | 14,536 | 24,356 | 23,638 | 23,584 | 23,050 | 22,634 |
| Profit before tax (Rs. Crores) | -18,175 | -61,797 | -44,253 | -28,234 | -29,298 | -30,410 |
| Tax % | 20% | -20% | 0% | 0% | 0% | -3% |
| Net Profit (Rs. Crores) | -14,604 | -73,878 | -44,233 | -28,245 | -29,301 | -31,238 |
| EPS (Rs) | -5.08 | -25.71 | -15.39 | -8.79 | -6.02 | -6.23 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 0% | 0% |
Over the past five years, Vodafone Idea’s financial performance has shown a mixed trajectory. Sales have experienced a modest growth, moving from Rs. 37,092 crores in 2019 to Rs. 42,652 crores in 2024, reflecting a 5-year compounded sales growth of 3%. Operating profit has increased significantly from Rs. 4,116 crores to Rs. 17,120 crores, indicating improved operational efficiency with the operating profit margin stabilizing at 40%.
However, the net profit has been consistently negative, with the loss widening from Rs. 14,604 crores in 2019 to Rs. 31,238 crores in 2024. The compounded profit growth over the last 5 years stands at -53%, highlighting ongoing financial challenges. The stock price has seen a turnaround, with a 3-year CAGR of 22% and a remarkable 130% growth in the last year. Despite these fluctuations, return on equity has remained challenging. The company’s financial struggles are also reflected in its substantial interest and depreciation costs, and the lack of dividend payouts over this period.
FAQs
What is the current market cap of Vodafone Idea?
Vodafone Idea’s market capitalization is a substantial ₹1,16,344 crore, reflecting its significant presence in the Indian telecom sector.
As of June 21, 2024, Vodafone Idea’s share price is ₹17.1, indicating the company’s ongoing market performance.
The share price target for Vodafone Idea in 2024 is projected to range between ₹16.06 and ₹20.47, suggesting potential growth within this range.
For the year 2025, the share price target is set between ₹16.06 and ₹24.95, indicating expectations of a gradual increase throughout the year.
In 2026, Vodafone Idea’s share price is forecasted to range from ₹19.77 to ₹30.72, showing a strong upward trend.
The share price target for Vodafone Idea in 2027 is expected to be between ₹24.10 and ₹37.45, reflecting continued growth.
By 2030, the share price of Vodafone Idea is expected to range from ₹43.68 to ₹67.86, highlighting long-term growth potential.
What is the dividend payout ratio of Vodafone Idea?
Vodafone Idea has maintained a 0% dividend payout ratio over recent years, indicating that no dividends have been distributed to shareholders.
What is Vodafone Idea’s compounded sales growth over the last 5 years?
Over the past 5 years, Vodafone Idea has achieved a compounded sales growth rate of 3%, reflecting moderate revenue growth.
What is Vodafone Idea’s stock price CAGR over the last year?
In the last year, Vodafone Idea’s stock price has surged with a CAGR of 130%, indicating remarkable recent growth.
What is the current book value of Vodafone Idea?
The current book value of Vodafone Idea is negative at ₹-20.8, reflecting its ongoing financial difficulties.
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Conclusion: VI’s Path Forward in the Evolving Telecom Landscape
In conclusion, VI, formerly Vodafone Idea, stands as a pivotal entity in India’s telecom landscape, renowned for its diverse service offerings and substantial infrastructure. Despite encountering setbacks such as a significant decline in subscribers and financial struggles marked by net losses and a negative book value, VI exhibits resilience through strategic initiatives. These include robust revenue and EBITDA growth, strategic financial maneuvers, and investor confidence reflected in its stock performance.
Challenges persist, including a low interest coverage ratio and decreased promoter holding, alongside modest sales growth. Nevertheless, VI’s strategic positioning in critical markets like Kerala and Mumbai, coupled with its leadership in IoT and extensive spectrum and network assets, underscores its potential for future growth. Planned investments in 4G and 5G expansions further signal optimism amid a competitive landscape.
Looking ahead, VI’s ability to navigate financial hurdles and capitalize on its market strengths will be crucial. With projected positive trends in share price and ongoing strategic adjustments, VI appears poised to leverage its infrastructure and market presence effectively, potentially paving the way for sustained growth and recovery in the dynamic Indian telecom sector.
What did we learn?
- 1 Vodafone Idea: Leading the Charge in India’s Telecom and IoT Revolution
- 2 Vodafone Idea Q4 FY24 Results Summary
- 3 How to Buy Vodafone Idea Shares in India?
- 4 Vodafone Idea Share Price Target: 2024 – 2030
- 5 Financial Condition of Vodafone Idea: Last 5 Years
- 6 FAQs
- 6.1 What is the current market cap of Vodafone Idea?
- 6.2 What is the current share price of Vodafone Idea?
- 6.3 What is the share price target for Vodafone Idea in 2024?
- 6.4 What is the share price target for Vodafone Idea in 2025?
- 6.5 What is the share price target for Vodafone Idea in 2026?
- 6.6 What is the share price target for Vodafone Idea in 2027?
- 6.7 What is the share price target for Vodafone Idea in 2030?
- 6.8 What is the dividend payout ratio of Vodafone Idea?
- 6.9 What is Vodafone Idea’s compounded sales growth over the last 5 years?
- 6.10 What is Vodafone Idea’s stock price CAGR over the last year?
- 6.11 What is the current book value of Vodafone Idea?
- 7 Conclusion: VI’s Path Forward in the Evolving Telecom Landscape
