Vi shares jump 3% as Q1 loss shrinks 43%
What's the story
Vodafone Idea's shares jumped by 3% on Tuesday after the company reported a narrower loss for the June quarter. The stock rose to ₹13.3 per share, with UBS giving it the highest target at ₹15. CLSA recommended a 'Hold' rating with a target price of ₹13 per share. Nomura and Axis Capital maintained their 'Neutral' and 'Reduce' ratings, respectively, with targets of ₹12.6 and ₹12.25 per share, respectively.
Financial highlights
Net loss narrowed to ₹3,754 crore
Vodafone Idea's net loss for the June quarter stood at ₹3,754 crore, down from ₹6,608 crore in the same period last year.
The company's consolidated EBITDA also grew by 9.1% YoY to ₹5,034 crore. This improvement was mainly due to a rise in subscribers and upgrades to high-speed broadband services.
Over 67% of its total subscriber base now uses 4G/5G services.
Subscriber metrics
ARPU increased by ₹18 YoY
Vodafone Idea's customer ARPU (average revenue per user), excluding M2M, grew by 10.2% YoY to ₹195 from ₹177 in Q1FY26.
The average data consumption of a 4G/5G subscriber also rose to 21.7GB per month, taking total daily data traffic on the network to an impressive 88.4 Pb.
This growth comes as part of the company's efforts to improve its operational performance and expand its high-speed broadband services.
Revenue growth
Revenue for the quarter was 1.6% above Nomura's estimates
Vodafone Idea's revenue for the quarter was 1.6% above Nomura's estimates, while EBITDA exceeded its expectations by 0.5%.
The company added three lakh subscribers during this period, taking its total subscriber base at the end of June to 19.31 crore.
This marked the first quarter of subscriber growth since the merger and indicates a positive trend in Vodafone Idea's overall performance in terms of both revenue and customer base expansion.