3 weeks ago
Brokerages Prefer Airtel Over Vodafone Idea After Q1 Results
Two phone companies in India, Airtel and Vodafone Idea, shared their money reports for the last few months.
Airtel earned a lot more profit than it did last year.
Vodafone Idea still lost money, but it lost much less than before.
For the first time in many years, Vodafone Idea added new customers.
Airtel gets more money from each customer than Vodafone Idea does.
Experts who study companies, called analysts, looked at both businesses.
Most experts think Airtel is the safer and better choice for investors.
Some experts think Vodafone Idea could become much more valuable if its comeback works.
A third phone company, Jio, also made more profit and wants to sell shares to the public.
Investors have to decide which company they think will do best.
Bharti Airtel's Q1FY27 net profit rose 35.5% year-on-year to Rs 8,057.2 crore, with consolidated revenue up 18.4% to Rs 58,539 crore.
Airtel's ARPU increased 2.72% sequentially to Rs 264, supported by postpaid additions and higher smartphone data usage.
Vodafone Idea's loss narrowed sharply to Rs 3,754 crore from Rs 6,611 crore a year earlier, on 6% higher revenue of Rs 11,689 crore.
Vodafone Idea added subscribers for the first time since the 2018 merger, lifting its base to 19.31 crore, while ARPU improved 10.2% year-on-year to Rs 195.
Jefferies and Motilal Oswal rate Airtel a 'Buy' with targets near Rs 2,360 and Rs 2,335, while Nomura is 'Neutral' on Vodafone Idea at Rs 13.50; Jio Platforms posted a 9.2% PAT rise and filed its DRHP with SEBI on June 19, 2026.
- Who
- Bharti Airtel, Vodafone Idea and Jio Platforms, along with analysts from Jefferies, Motilal Oswal, Nomura and JM Financial.
- What
- A comparison of June-quarter (Q1FY27) results and brokerage outlooks on telecom stocks, with Airtel seen as an earnings play and Vodafone Idea as a recovery bet.
- Where
- India, with Jio Platforms proposing a listing on the National Stock Exchange and Bombay Stock Exchange.
- When
- The June quarter of FY27, with the Jio Platforms DRHP filed with SEBI on June 19, 2026.
- Why
- Airtel's strong profit, ARPU and free cash flow contrast with Vodafone Idea's first subscriber gain since the 2018 merger, though Vodafone Idea still faces debt, funding and tariff uncertainties.
Airtel earnings strength
Vodafone Idea recovery promise
Preferred telecom stock
Airtel earnings strength
Jefferies and Motilal Oswal rate Bharti Airtel a 'Buy' with target prices of Rs 2,360 and Rs 2,335, calling it the preferred pick on robust free cash flow, improving return ratios and organic ARPU growth through premiumization.
Vodafone Idea recovery promise
Nomura and JM Financial see upside in Vodafone Idea with targets of Rs 13.50 and Rs 14.70, with Nomura valuing it at a higher multiple than Airtel because of its potentially higher earnings growth if the turnaround gains traction.
Vodafone Idea turnaround outlook
Airtel earnings strength
The first subscriber addition since the 2018 merger, sharply narrowed losses and encouraging 4G/5G customer growth show the recovery is visible and taking hold.
Vodafone Idea recovery promise
Heavy debt, dependence on funding such as the Rs 25,000 crore approval, and expectations of delayed tariff hikes keep the longer-term recovery uncertain, and brokerages have cut FY27-FY29 estimates.
Key facts
- Airtel Q1 net profit
- Rs 8,057.2 crore, up 35.5% YoY
- Airtel ARPU
- Rs 264, up 2.72% sequentially
- Vodafone Idea Q1 net loss
- Rs 3,754 crore, narrowed from Rs 6,611 crore
- Vodafone Idea ARPU
- Rs 195, up 10.2% YoY
- Vodafone Idea subscribers
- 19.31 crore, first gain since the 2018 merger
- Jefferies rating on Airtel
- Buy, target Rs 2,360 (~20% upside)
- Nomura rating on Vodafone Idea
- Neutral, target Rs 13.50 (~5% upside)
- Jio Platforms Q1 PAT
- Rs 7,764 crore, up 9.2%; DRHP filed June 19, 2026
Quotes
Nomura Representative
Brokerage analyst at Nomura
“Higher than expected mobile subscribers and ARPU, strong growth in Airtel business & Africa and healthy FCF generation were the key positive surprises in 1Q results.”
financialexpress.com
“We prefer Bharti Airtel among our covered telecom stocks.”
financialexpress.com
Sources
Related news
Vodafone Idea shares jump 6% on strong Q1 results
Jefferies Keeps Bharti Airtel as Top Telecom Stock Pick
Vodafone Idea shares jump 3% after Q1 results; analysts mixed
Vodafone Idea adds subscribers first time since 2018, cuts losses
India Telecom Premiumisation Raises User Payments Without Tariff Hikes
PVR Inox Buyback: September 3 Last Day to Buy
Augmont Enterprises Rises Despite Gold-Buying Appeal and Market Risks
BSE Shares Fall as New Closing Auction Session Draws Scrutiny
Spice Lounge Food Works Stock Hits Upper Circuit Amid Crash
Indian Stocks Slide as Oil, Conflict and Yields Rise
