Vodafone Idea Stock Skyrockets 3% on Stellar Q2! Lowest Loss in 19 Quarters, Citi Eyes 47% Upside – Is This the Turnaround?

Vodafone Idea Limited announced its financial results for the second quarter of FY26, reporting a consolidated net loss of Rs 5,524.2 crore. This represents a significant improvement compared to the Rs 7,175.9 crore net loss in the same quarter of the previous fiscal year, marking the telco's lowest net loss in 19 quarters. Revenue from operations saw a modest year-on-year increase of 2.4 percent, reaching Rs 11,194.7 crore from Rs 10,932.2 crore in the prior year period. EBITDA for the quarter stood at Rs 4,690 crore.

Brokerage Views: Motilal Oswal maintained a 'Neutral' stance, noting that Vodafone Idea is slightly ahead due to better enterprise revenue and that earnings exceeded their estimates. They also highlighted the company's expansion of 5G services to 29 cities. Citi reiterated its 'Buy' rating with a price target of Rs 14 per share, suggesting over 47 percent potential upside for the "high-risk stock." Citi believes the Supreme Court's clarification on Adjusted Gross Revenue (AGR) dues could significantly help Vodafone Idea complete its long-awaited fundraise. UBS maintained a 'Neutral' rating and a target price of Rs 9.7 per share, implying a modest upside of over 2 percent. UBS indicated they will be monitoring capital expenditure, network deployment, 5G launches, debt raise progress, AGR/spectrum relief measures, and the company's overall outlook.

Impact: This news has a positive impact on Vodafone Idea's stock price and investor sentiment. The reduction in losses and revenue growth, combined with optimistic analyst outlooks, particularly Citi's buy rating and target, suggest potential for further stock appreciation. The key monitorable remains the successful completion of its fundraise, potentially aided by regulatory clarity. Impact Rating: 7/10

Difficult Terms Explained: Consolidated net loss: This is the total loss incurred by a company, including all its subsidiaries, after accounting for all revenues and expenses. Revenue from operations: The income a company generates from its primary business activities. EBITDA: Stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's operating performance before accounting for financing decisions, accounting decisions, and tax environments. AGR dues: Adjusted Gross Revenue dues refer to the license fees and spectrum usage charges that telecom operators in India have to pay to the government, calculated based on a specific definition of revenue. Fundraise: The process by which companies obtain capital, often through issuing shares or taking out loans, to fund their operations or expansion. Capex: Capital Expenditure is the money a company spends to acquire, maintain, or improve its long-term physical assets, such as buildings, technology, or network infrastructure.