Prime Highlight
- Vodafone Idea unveiled a three-year ₹45,000 crore investment plan to improve network quality, expand coverage, and drive growth.
- The plan aims to triple EBITDA to around ₹27,000 crore by FY29, boosting subscriber additions and supporting double-digit revenue growth.
Key Facts
- The turnaround strategy will require ₹95,000 crore in cash flows, including ₹35,000 crore from borrowings and ₹6,400 crore from a CLAM-related settlement.
- Vodafone Idea’s 5G network now covers nearly 99% of its revenue base in key circles, with Q3 FY26 revenue at ₹11,323 crore and a narrowed net loss of ₹5,286 crore.
Background
Shares of Vodafone Idea rose sharply on Friday after the telecom operator announced an ambitious three-year investment plan to strengthen its network and revive growth. The stock climbed nearly 13% to an intraday high of ₹11.36 amid strong trading volumes, even as the broader market remained weak.
The rally came after Vodafone Idea announced a ₹45,000 crore plan to improve network quality and expand coverage. The company said the investment will help drive subscriber additions, support double-digit revenue growth, and triple EBITDA to around ₹27,000 crore by FY29.
Management said the turnaround plan will require cash flows of about ₹95,000 crore over the period. This includes plans to raise ₹35,000 crore through new borrowings, receive ₹6,400 crore from a CLAM-related settlement, and use internal accruals. The company also said it is in the process of reassessing government dues worth ₹87,700 crore, frozen as of December 2025 and is seeking potential relief.
Despite the upbeat outlook, analysts urged caution. Brokerages said the plan depends heavily on smooth execution, fresh funding, and further tariff hikes. ICICI Securities noted that a large part of the projected growth relies on subscriber gains and higher tariffs. Motilal Oswal said the company’s recovery will also depend on regulatory support and rational competition.
Some analysts remain skeptical about Vodafone Idea’s ability to gain market share against stronger rivals such as Bharti Airtel and Reliance Jio. Others said any upside would depend on government relief, sharp increases in average revenue per user, and sustained subscriber growth.
Vodafone Idea continues to post losses, though its Q3 FY26 net loss narrowed to ₹5,286 crore. Revenue rose 1.85% year-on-year to ₹11,323 crore, while blended ARPU increased to ₹172. The company said its 5G rollout now covers nearly 99% of its revenue base across key circles.
