Vodafone Idea shares drop 2%, slow ARPU growth

IDEA Vodafone Idea shares fell about 2% on Friday after the telecom operator posted a wider net loss for the September quarter and brokerage Nomura retained its Neutral rating, pointing to ongoing margin pressure and sluggish average revenue per user (ARPU) ***** stock was trading near Rs 12.7 in morning deals. Nomura has a target price of Rs 13.5, implying modest upside. The brokerage noted improving subscriber additions but highlighted a sharp sequential drop in EBITDA margins and weaker-than-expected ARPU ***** Idea reported revenue of Rs 11,884 crore for Q2 FY27, up 6.2% year-on-year and 1.7% quarter-on-quarter. Reported EBITDA stood at Rs 4,981 crore, down 1.1% sequentially, with the margin contracting 120 basis points to 41.9%—the steepest quarterly decline in four years, according to Nomura. Net loss widened to Rs 5,975 crore from Rs 5,524 crore a year earlier, partly due to mark-to-market impact on treasury assets.