Archive · 19 Aug 2025
Motilal Oswal Flags Risks for Vodafone Idea
Vodafone Idea, a telecom company, is facing challenges.
A financial analysis firm, Motilal Oswal, suggests the company's stock price may drop.
They cite concerns about falling subscriber numbers, declining market share, and a reduction in spending on infrastructure.
Furthermore, Vi is having difficulty raising funds, and a resolution on debt is still pending.
The company's capex plans may be in jeopardy.
Motilal Oswal has a 'Sell' recommendation for Vodafone Idea (Vi), with a price target of Rs 6.
Vi's EBITDA margin contracted to 41.8%, with potential subscriber losses.
Vi's subscriber losses moderated, but market share continued to decline.
Vi's capex moderated in Q1 after a high in Q4.
Motilal Oswal notes that Vi's fund-raising plans remain 'elusive'.
- Who
- Vodafone Idea (Vi), Motilal Oswal
- What
- Motilal Oswal reiterates 'Sell' recommendation for Vi shares.
- When
- Q1 and Q4 FY25 are referenced in the report.
- Where
- India
- Why
- Concerns over Vi's financial performance, subscriber loss and funding issues.
Motilal Oswal's Concerns
Vi's Counterpoints
Performance Indicators
Motilal Oswal's Concerns
Vi's EBITDA margin contracted and subscriber base may decline.
Vi's Counterpoints
Vi's subscriber losses moderated and capex moderated.
Funding
Motilal Oswal's Concerns
Fundraising plans remain elusive
Vi's Counterpoints
Vi continues to engage with lenders
Revenue Growth
Motilal Oswal's Concerns
Vi may not benefit from tariff hikes.
Vi's Counterpoints
Peers see significantly higher revenue.
- Price Target (Motilal Oswal)
- Rs 6 per share
- EBITDA Margin
- 41.8%
- Capex Q4
- Rs 4,200 crore
- Capex Q1
- Rs 2,400 crore
- Subscriber Loss Q1
- 0.5 million
Sources
Vodafone Idea eyes non-bank funding amid delay in ₹25,000-crore bank loans
Vodafone Idea to consider non-bank financiers for funding
Vodafone Idea to consider non-bank financiers for funding
With ₹2 lakh crore debt and AGR dues, Vodafone Idea eyes non bank funds to keep capex going
Vodafone Idea seeking non-bank funding to keep capex plan on track
