Vodafone Idea Q2 results: Earnings preview, consensus target, what to watch

Vodafone Idea Ltd is expected to report  a net loss to narrow to Rs 5,262 crore in the September quarter, Bloomberg median estimate of nine analysts suggested. The telecom giant is seen reporting consolidate revenue of Rs 11,906 crore, a growth of 6.35 per cent year-on-year (YoY). Ebitda is estimated at Rs 5,127 crore, with margin seen coming in at 43.6 per cent. All eyes would be on the progress on 5G rollout and debt fundraise.

Ahead of its earnings, VIL shares were trading 1.16 per cent higher at Rs 13.03 apiece. Following a sharp 20 per cent upside in 2026, the 12-month consensus target on the stock sands at Rs 12.17, implying a 6 per cent potential downside.

The Q2 consensus estimate for Vodafone Idea's network expenses and IT outsourcing cost are estimated at Rs 2,380 crore while licence fee and spectrum usage charges are pegged at Rs 982 crore.  Roaming and access charges are seen at Rs 1297 crore and finance cost at Rs 5,040 crore.
Nuvama estimated Vodafone Idea Q2 net profit at Rs 5,355 crore against Rs 5,561.80 crore YoY. It sees sales rising 8.5 per cent to Rs 12,140 crore from Rs 11,198 crore YoY.

"We estimate revenue shall grow 3.9 per cent QoQ, supported by positive subscriber addition and moderate ARPU growth. Ebitda margins to expand 70 bps QoQ," Nuvama said.

Kotak Institutional Equities sees adjusted net profit at Rs 5,063 crore.

"We expect revenues/Ebitda to increase by 3.4 per cent/1.3 per cent QoQ due to a combination of better ARPU/subscriber mix, partially offset by higher network/other opex during the quarter," Kotak said.

This brokerage is modelling in EoP subscriber base to increase by 10 lakh to 19.41 crore during the quarter against 3 lakh subscriber addition in Q1. Average revenue per user (ARPU) is seen increasing to Rs 181 per month (Rs 177 per month in 1QFY27) on improving subscriber mix and 5G rollouts.