Vodafone Idea may end up becoming fringe player if revenue growth doesn’t happen, say analysts

KOLKATA: Vodafone Idea’s weak first-quarter earnings could rapidly relegate India’s top telecom operator by subscribers to a regional player if it fails to grow revenue in the coming quarters, analysts said.
It also appears to rule out an early revival for the debt-laden telecom sector, they said.
The company’s “4.3% on-quarter overall revenue decline, and an even higher 6% wireless service revenue decline (in the April-June period) will take away the illusion of stability and hopes of a quick revival in the sector,” said Kotak Institutional Equities.
“At a big picture level, the odds of a set of investors liking the odds of a two-large players scenario (read: Airtel and Reliance Jio) emerging increases with Voda Idea’s fiscal first-quarter print,” the brokerage said.