Cash-strapped telco Vodafone Idea‘s Q3 results disappointed even the expectations of topline growth that investors had from the stock, falling short of both revenue and EBITDA estimates.

What Happened: Vodafone Idea’s net loss narrowed to ₹6,985 crore in Q3 from ₹7,990 crore a year ago, while revenue remained flat at ₹10,673 crore.

The blended average revenue per user (ARPU) improved to ₹145 in the quarter, compared to ₹135 in the previous year. Total data subscribers increased to 13.74 crore from 13.53 crore in the corresponding quarter of the previous year.

In the December-ended quarter, foreign institutional investors (FIIs) reduced their stake in Vodafone Idea to 2.27% from 2.46% in the previous quarter. Mutual funds, however, increased their stake to 2.9% in December 2023 from 1.67% in the previous quarter.

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Analyst Calls: UBS analysts rated Vodafone Idea as ‘sell’ with a target price of ₹11.5 per share, adjusting down from the previous close of ₹14.7.

The brokerage noted that Q3 revenue was flat quarter on quarter, 2.5% below its estimates, and EBITDA increased by 1.6% quarter on quarter, falling 3.8% below expectations. The company’s net losses, however, were in line with expectations, aided by one-time gains.

Price Action: Vodafone Idea shares were trading 0.68% lower at ₹14.60 on Tuesday. Over the past month, the stock has declined over 8%, underperforming a 0.4% fall in the overall market.

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