Vodafone Idea Limited, also known as Vi, is one of the major telecom companies in India. It was listed on the NSE and BSE on March 9, 2007. In this article, we will explore Vodafone Idea’s future growth potential and Vodafone Idea share price target from 2025 to 2050.
About Vodafone Idea
Vodafone Idea Limited was formed in August 2018 after the merger of Vodafone India and Idea Cellular. It is one of those telecom service providers that survived after the entry of Reliance Jio in India. The company provides mobile and internet services across India, offering 4G and VoLTE networks to its customers. Despite facing financial challenges, Vodafone Idea continues to expand its services and improve network quality. The company competes with major players like Reliance Jio and Bharti Airtel in India’s highly competitive telecom market.
Vodafone Idea Business Model
- Mobile Services: Vodafone Idea earns by offering calling, SMS, and mobile data plans to prepaid and postpaid users.
- Broadband and Fiber Services: The company provides high-speed internet services for homes and businesses.
- Enterprise Solutions: It generates revenue by offering cloud services, IoT solutions, and data security to businesses.
- International Roaming: Vodafone Idea makes money by providing roaming services for customers traveling abroad.
- Value-Added Services (VAS): It earns through extra services like caller tunes, mobile TV, cloud storage, and gaming subscriptions.
- Advertising and Partnerships: The company partners with businesses for digital ads and promotions on its platform.
- Tower and Infrastructure Leasing: Vodafone Idea leases its telecom towers and network infrastructure to other operators.
Vodafone Idea Fundamental Analysis
| Stock Name | Vodafone Idea Ltd. |
|---|---|
| Market Cap | ₹ 58,185 Cr. |
| 52W High | ₹ 19.2 |
| 52W Low | ₹ 6.60 |
| Stock P/E | – |
| Book Value | ₹ -13.7 |
| Dividend Yield | 0.00 % |
| ROCE | -3.61 % |
| ROE | – |
| Face Value | ₹ 10.0 |
| Shareholders | March 2023 | March 2024 | Jan 2025 |
|---|---|---|---|
| Promoters | 50.36% | 48.91% | 38.80% |
| FIIs | 2.28% | 1.97% | 9.89% |
| DIIs | 0.54% | 2.20% | 4.17% |
| Government | 33.18% | 32.23% | 22.63% |
| Public | 13.64% | 14.69% | 24.50% |
| No. of Shareholders | 31,38,338 | 36,79,061 | 59,88,618 |
Key Factors Driving Vodafone Idea Future Growth
- 5G Expansion: Vodafone Idea plans to roll out 5G services, which can attract more users and increase revenue.
- Rising Data Consumption: More people in India are using mobile internet, and Vodafone Idea can benefit by offering better data plans.
- Government Support: Vodafone Idea has received financial relief from the government, which can help in reducing debt and improving operations.
- Network Improvement: Vodafone Idea is upgrading its network to provide better coverage and faster internet, which can help retain customers.
- Strategic Partnerships: Vodafone Idea is working with tech companies to offer bundled services like cloud storage, entertainment, and business solutions.
- Growing Digital Payments: Vodafone Idea can benefit from the increasing use of digital transactions by offering fintech and mobile wallet services.
- Rural Market Expansion: Vodafone Idea is expanding into rural areas, where mobile and internet usage is growing rapidly.
- Cost Optimization: Vodafone Idea is cutting operational costs and improving efficiency to increase profits.
- Increasing Smartphone Users: As more people in India buy smartphones, Vodafone Idea has the potential to gain more customers for its data services.
Pros of Vodafone Idea
- Increased Average Revenue Per User (ARPU): In Q2 FY25, the company’s average revenue per user (ARPU) increased by 7.8% to ₹166 due to tariff hikes and improved customer revenue.
- Ongoing Network Expansion: Vodafone Idea is investing around ₹30,000 crore over three years to improve 4G coverage and prepare for 5G services.
- Bank Guarantee Waiver: In December 2024, the Indian government waived the requirement for telecom companies to submit financial bank guarantees for spectrum acquired through auctions held between 2012 and 2021. This move reduced Vodafone Idea’s bank guarantees by approximately ₹24,800 crore, increasing its financial flexibility.
- Increase in FIIs and DIIs Holding: FIIs increased their holding from 1.97% in March 2024 to 9.89% in January 2025. DIIs increased their holding from 2.20% in March 2024 to 4.17% in January 2025.
Cons of Vodafone Idea
- Lagging in 5G Deployment: Vodafone Idea continues to provide 4G services, whereas competitors such as Airtel and Jio have been offering 5G services for a long time. This puts Vodafone Idea at a competitive disadvantage in attracting high-value customers who prefer faster and more advanced network services.
- High Debt Levels: In September 2024, Vodafone Idea had a total debt of ₹2.16 trillion, which included significant deferred spectrum payments to the government.
- Ongoing Financial Losses: In Q3 FY25, the company reported a net loss of ₹6,609 crore, which was slightly improved from ₹6,986 crore in the previous year, but still indicates financial instability.
- Declining Subscriber Base: Vodafone Idea’s user base decreased to 199.8 million in Q3 FY25, reflecting a loss of market share to competitors.
- Regulatory Challenges: In February 2025, India’s Supreme Court rejected the company’s plea to recalculate adjusted gross revenue dues, maintaining its liability of around ₹2.27 trillion.
- Funding and Investment Concerns: Despite plans to raise funds, including a 19.80 billion share issue in December 2024, the company’s high debt and ongoing losses may discourage potential investors.
- Poor Sales Growth: Vodafone Idea has delivered a poor sales growth of 1% CAGR over the last 3 years.
- Decrease in Promoter Holding: There is a significant decrease in promoter holding of Vodafone Idea from 74.99% in March 2022 to 38.80% in January 2025.
| Years | Target Price |
|---|---|
| Vodafone Idea Share Price Target 2025 | ₹10 to ₹15.50 |
| Vodafone Idea Share Price Target 2026 | ₹12.5 to ₹18.5 |
| Vodafone Idea Share Price Target 2027 | ₹15 to ₹25 |
| Vodafone Idea Share Price Target 2028 | ₹19 to ₹34 |
| Vodafone Idea Share Price Target 2029 | ₹25 to ₹50 |
| Vodafone Idea Share Price Target 2030 | ₹30 to ₹65 |
| Vodafone Idea Share Price Target 2035 | ₹60 to ₹200 |
| Vodafone Idea Share Price Target 2040 | ₹150 to ₹600 |
| Vodafone Idea Share Price Target 2050 | ₹600 to ₹3600 |
Conclusion
Vodafone Idea has faced significant challenges in recent years, including high debt levels, financial losses, and delays in 5G deployment. However, the company is working to improve its situation through network expansion, cost optimization, and government support. The increased holdings of FIIs and DIIs, as well as the rising ARPU, indicate investor confidence. Also, Vodafone Idea has growth potential, particularly in terms of digital services and rural markets. For latest updates, check VI official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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