shares remained in focus on Thursday after global brokerage firm Jefferies retained a bullish view on the stock. The stock traded at ₹15.26 at 10.42 am on the , after declining nearly 2 per cent during the session to ₹15.24 from the previous close of ₹15.52.
Jefferies expects a 25 per cent compound annual growth rate (CAGR) in operating profit for Vodafone Idea Limited (VIL), driven by operating leverage, subscriber stabilisation and tariff-led earnings expansion.
It has initiated a buy on the stock at a target price of ₹20.
The brokerage termed Vodafone Idea a high-beta turnaround opportunity in the Indian telecom sector, while flagging existing execution and funding risks.
According to Jefferies, network investments by the company are reducing churn and supporting customer additions, setting the stage for an operational turnaround.
The brokerage noted that ongoing network rollouts will help translate tariff hikes into top-line gains while helping the company sustain its revenue market share.
The network investments are already driving down churn and will likely drive down churn further and also boost gross subscriber additions, which in turn should drive a turnaround in subscriber additions from FY28, Jefferies said.
On operating profitability, Jefferies projects an 840-basis-point expansion in cash EBITDA margins to 29 per cent over the FY26–29 period.
Jefferies expects incremental EBITDA margins to rise further to over 60 per cent from FY30 once network rollouts normalise, supporting cash EBITDA growth through FY31.
Funding risks
On funding and cash flows, Jefferies highlighted that while operational cash flows expand, cash outflows will increase sharply to over ₹400 billion annually during FY29–34, causing a temporary cash flow mismatch.
Jefferies added that this mechanism will cover the shortfall over FY30–34, noting that securing another ₹160 billion equity injection amid improved operational performance remains feasible.