Vodafone Idea shares soar 13% after ₹45,000 capex plan; Check targets by Citi, BofA, CLSA

Synopsis: Vodafone Idea shares surged 13% to Rs. 11.07 on a Rs. 45,000 crore capex plan for network expansion, aiming 5G rollout, 4G coverage parity, and enhanced connectivity, while brokerages remain mixed on execution, debt, and subscriber risks.

This telecom operator, providing mobile, internet, and digital services across the country, is in focus after its stock surged 13% in today’s session following the announcement of an investment plan of approximately Rs. 45,000 crore.

With a market capitalisation of Rs. 1,19,935 cr, the shares of Vodafone Idea Ltd are currently trading at Rs. 11.07 per share, increasing more than 13% in today’s market session, making a high of Rs. 11.37, up from its previous close of Rs. 10.05 per share. The stock has been rising for the past three days, moving from Rs. 9.93 on January 28 to a high of Rs. 11.37 today, marking a gain of 14.5%.

Capex plan 

The company has outlined an investment plan of approximately Rs. 45,000 crore over the next three years, focused on an aggressive network rollout. Under its 17-5-5 strategy, the company aims to regain coverage parity in 17 priority markets, achieve 100% 2G-to-4G coverage in five additional markets, and ensure seamless 5G experience across urban areas. 

The rollout will also enhance connectivity on national and key state highways, airports, and places of interest, while satellite communication (Satcom) will be leveraged to expand coverage in remote, rural, maritime, and border regions, along with Fixed Wireless Access (FWA) deployment.

Vodafone Idea (Vi) CEO Abhijit Kishore stated that, in addition to the Rs. 18,000 crore invested over the past six quarters, the company plans to expand across all urban and rural markets in India over the next 30 months. He defined urban markets as towns with 20,000+ population with 5G and emphasized the need to bridge gaps in 4G coverage.

Brokerages on Vodafone Idea 

• Citi: Citi is bullish with a “Buy” rating and Rs. 14 target, 26% upside from current levels. They see near-term boosts from Vi raising debt from banks and the government reassessing AGR dues. Long-term success depends on execution, competition, and pricing. While cash flow is good for the next two years, Vi may need refinancing or equity to meet big spectrum payments starting FY29. Indus Towers is expected to benefit from Vi’s expansion plan.
• Bank of America (BofA): BofA is bearish, keeping an “Underperform” rating. They think Vi is most at risk among private telcos for losing subscribers and revenue. There’s little chance of another tariff hike, and even after AGR relief, Vi still owes $9.53 billion, with large payments due later.
• ICICI Securities: ICICI has a “Hold” rating with a Rs. 10 target, which is 10% downside from current levels. They slightly lowered EBITDA estimates for FY26 and FY27 but kept the target unchanged by adjusting valuation and accounting for AGR dues.
• CLSA: CLSA cut its target price from Rs. 12 to Rs. 11 but retained “Outperform,” which is 8% upside from the current levels. They note Vi is trying to raise debt for a $5 billion investment over three years. Subscriber losses caused them to lower FY26–FY28 estimates by 1 to 8%. They see tariff hikes as a potential stock catalyst and say AGR relief could save Vi about $8 billion.

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