telecom

Vodafone Idea

IDEA · Nifty 50

14.92

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positiontelecom sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score65/100 (ADEQUATE). 1 positive flags, 5 concerns.
Historical Context55 similar technical setups. Average outcome: -14.5% decline. 0% positive.

Fundamental

65/100

ADEQUATE

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Vodafone Idea scores 65/100 on fundamentals (adequate). Vodafone Idea: BROAD EXPANSION regime.

Fundamental Score: 65/100 · ADEQUATE · 2 signals detected

DuPont Analysis

ROE -96.6% broken into three drivers. Each shows how efficiently the company generates returns.

ROE-96.6%=
77.1%Net Margin
×
0.2xTurnover
×
-5.4xLeverage

ROE of -96.62% is modest margin-driven and stable. Net margin of 77.1% × asset turnover of 0.23x × leverage of -5.4x.

What This Means

Net margin of 77.1% means the company keeps ₹77.1 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.23x means the company generates ₹0.23 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of -5.4x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

60.3%

Operating

125.1%

Net

77.1%

improving

Gross margin 60.3% → operating margin 125.1% → net margin 77.1%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

WEAK

Cash flow only covers 0.6x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.

Debt Sustainability

ADEQUATE

Interest covered only 2.6x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 2.5x is moderate.

Free Cash Flow

STRONG

FCF margin at 18.8% — strong cash generation. Business is self-funding.

Peer Comparison

Vodafone Idea is compared against 4 peers in the telecom sector.

Key Watchpoints

🟢

Breaks above ₹16 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹14 (-5%)

Further downside risk

🟢

Telecom sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition
⚠️ Low Earnings Quality: Cash flow only 0.6x earnings — weak cash conversion

Risk Flags

🔴 3 Critical⚠️ 2 Warning1 Positive6 total flags
🔴Unusual items are 170% of net income
Earnings Quality

One-off items significantly inflating reported profit. Core earnings may be much lower.

🔴Cash covers only 5% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

🔴Overall governance risk: 10/10
Governance

Elevated risk score. Review audit, board, and shareholder rights metrics.

⚠️Special charges present in income statement
Earnings Quality

Special charges of ₹58607K Cr. May indicate restructuring, impairment, or one-time costs.

⚠️Board risk elevated: 9/10
Governance

Governance structure concerns. Independent director representation may be weak.

High promoter holding: 75%
Governance

Strong insider alignment. Promoters have significant skin in the game.

🔴 3 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
4.6UNAVAILABLE
P/B Ratio
-4.5HIGH
Market Cap
₹16143111.9L CrHIGH
From 52W High
98% of high
Sector Peers
4
Vodafone Idea Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight