Shares of Vodafone Idea Dips Amidst Two-Day Winning Streak as Spectrum Payments Worries Resurface

The shares of Vodafone Idea dipped on Tuesday, September 8, following a two-day winning streak amid worries about its upcoming spectrum payment woes coming back into limelight. 

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The share price fell by 0.83% to close at ₹15.47 during the afternoon session. This dip was witnessed post a good rally seen over the past two days in which Vodafone Idea gained nearly 7.7%. 

Despite the dip in performance witnessed today, Vodafone Idea has been doing quite well in the current fiscal year 2026. It has been up by about 33%, whereas the benchmark Nifty 50 is down by nearly 9%. The market capitalization of the company is ₹1.68 lakh crore. 

Spectrum Payments Remain a Key Concern 

This decline was caused by an updated note from HSBC which revised its target price for Vodafone Idea from ₹7.70 to ₹8.25 while maintaining its “reduce” recommendation. 

In this regard, what is of major concern is the level of cash that Vodafone Idea is likely to require for future spectrum payments. 

HSBC anticipates that the firm’s operating cash flow will be lower than its spectrum payments obligations in FY29, considering that there will be a mobile tariff increase in Q1 CY27. 

According to the estimates provided in the report, Vodafone Idea needs to more than double its operating cash flow within the next three years to make the spectrum payments. 

The funding requirement may not end there. Further capital could be needed when spectrum renewals begin from 2030. 

At the same time, Vodafone Idea’s investments in its network are expected to help it hold on to its existing market share. HSBC expects the company’s EBITDA to grow at a compound annual rate of around 15% between FY26 and FY29, largely supported by the assumed tariff increase. 

Vodafone Idea Gets Relief in ₹363 Crore GST Case 

The market movement also came a day after Vodafone Idea received a favourable development in a long-running tax dispute. 

The apex court dismissed the appeal filed by the government on September 7 seeking to resurrect its Rs 363 crore GST claim on Vodafone Mobile. This was in connection with the sale of tower properties to ATC Telecom in 2017. 

Vodafone Mobile has since then merged with Vodafone Idea. 

Vodafone Mobile subsequently merged with Vodafone Idea in 2018. 

Revenue Rises, But Company Remains in Loss 

Vodafone Idea reported a net loss of ₹3,754 crore for the first quarter. 

Revenue, however, increased 3.2% sequentially to ₹11,689 crore. EBITDA rose 3% from the previous quarter to ₹5,034 crore. 

Margins remained largely unchanged, with the EBITDA margin at 43.07%, compared with 43.14% in the preceding quarter. 

The stock’s decline on Tuesday therefore came against a mixed backdrop. Vodafone Idea has delivered strong gains so far this year and recently received relief in the GST dispute, but the question of how it will fund sizeable spectrum payments over the coming years continues to hang over the company.