Vodafone Idea’s share prices extended the fall and the share price is now down close to 5% in 5 days. The company has missed the deadline for submitting a bank guarantee worth Rs 6,091 crore. It is for the shortfall in the 2015 spectrum auction dues.
The telecommunications department (DoT) instructed the company to either provide a bank guarantee or make a cash payment of Rs 5,493 crore by March 10. This update follows the Department of Telecommunications granting Vodafone Idea a waiver of Rs 24,800 crore in bank guarantees for spectrum auctions conducted in 2012, 2014, 2016, and 2021. There was, however, a deficit concerning the dues from the 2015 spectrum auction. This matter is important as Vodafone Idea had appealed to the DoT for the waiver of this amount as well.
ALSO READVodafone Idea misses date to submit Rs 6,091 crore bank guarantee Motilal Oswal on Vodafone Idea: Cuts target price and rating
The brokerage firm Motilal Oswal published a research report after the company reported its quarterly results. It downgraded the stock to ‘Sell’ call from ‘Neutral’, with a revised target price of Rs 5. It also cut the EBITDA estimates by 7%-8% for FY26-27 over lower subscriber and average revenue per user. “Vi lost market share to peers in Q3 FY25, with continued data subscriber churn and weaker customer engagement metrics,” said Motilal Oswal.
Vodafone Idea’s performance in Q3
The company reported a net loss of Rs 6,609.3 crore in Q3 FY25, narrowing from a loss of Rs 7,175.9 crore it posted in the previous quarter. The company’s revenue from operations rose 1.7% quarter-on-quarter to Rs 11,117.3 crore from Rs 10,932.2 crore in Q2 FY25. Vi’s ARPU improved to Rs 173 in the third quarter of the current financial year, compared to Rs 166 in the previous quarter.
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