Vodafone rings good tune

Vodafone Idea is trading higher at Rs. 13.11, up 1.55% from its previous close of Rs. 12.91. The stock opened at Rs. 13.27, touched an intraday high of Rs. 13.30 and a low of Rs. 12.86, with turnover at Rs. 15.01 crore. Its full market capitalisation stands at around Rs. 1.42 lakh crore, while free-float market cap is around Rs. 35,990 crore. The stock remains below its 52-week high of Rs. 15.35, but has recovered sharply from its 52-week low of Rs. 6.12.

Trigger

• Q1 FY27 revenue rose 6% YoY and 3.2% QoQ to Rs. 11,689 crore.
• Q1 FY27 marked the first quarter of net subscriber addition since the 2018 merger.
• Subscriber base improved to 193.1 million as of June 30, 2026, from 192.8 million QoQ.
• EBITDA rose 9% YoY and 3% QoQ to Rs. 5,034 crore.
• ARPU improved to Rs. 177 from Rs. 174 in Q4 FY26 and Rs. 165 in Q1 FY26.
• Company is planning Rs. 45,000 crore capex over three years.

The key positive is that Vodafone Idea is finally showing operating stabilisation after years of subscriber losses. The net subscriber addition, even if small, is important because it signals that the network investment and customer upgrade strategy may be beginning to work. Around 67% of its subscribers are now 4G/5G data users, giving the company room to improve ARPU further as data consumption and premium plan upgrades rise.

The capex story is central to the revival argument. The company has already placed capex orders of Rs. 9,000 crore and spent Rs. 1,930 crore in Q1 FY27 to strengthen network infrastructure, including high-speed broadband. It has expanded 5G coverage to over 200 cities across 17 key circles where it holds 5G spectrum. If this rollout improves network quality, the market may start pricing in lower churn, better ARPU and gradual narrowing of losses.

Net worth is still negative at Rs. 38,327 crore, while deferred payment obligations towards spectrum and AGR stand at Rs. 1.48 lakh crore as of June 30, 2026, with Rs. 7,076 crore due by March 2027. Bank debt is low at Rs. 211 crore and cash stands at Rs. 6,558 crore, helped by part proceeds from promoter warrant issuance.

At the current market capitalisation of around Rs. 1.42 lakh crore, Vodafone Idea’s enterprise value is significantly higher at roughly Rs. 2.84 lakh crore after factoring in deferred spectrum and AGR obligations.