Vodafone Idea still has a long climb ahead, says Axis Capital

Gaurav Malhotra, Executive Director at Axis Capital, believes Vodafone Idea’s future largely depends on how the government structures its relief package—whether it involves a full or partial waiver or a staggered payment plan. He prefers to wait until there is clarity on the framework before revising his outlook.On November 3, the Supreme Court clarified that the government is free to consider granting relief on Vodafone Idea’s additional adjusted gross revenue (AGR) dues as well as the reassessment of its pending dues.

Malhotra cautioned that even if funding comes through, Vodafone’s recovery will take time, as years of underinvestment mean it must rebuild both its network and market share.

Discussing Bharti Airtel,  Malhotra said the decision to raise its stake in Indus Towers by 5% is more of a strategic step than a transformative one, according to Gaurav Malhotra, Executive Director at Axis Capital. Since Airtel already holds a over 50% of Indus, the incremental stake doesn’t really change much but acts as a de-risking measure amid uncertainty surrounding Vodafone Idea.He added that Indus Towers remains central to Bharti Airtel’s network operations, hosting most of its tower infrastructure, which makes the investment important from an operational standpoint.
Malhotra said Airtel continues to deliver solid performance, supported by steady growth across its mobile, broadband, and enterprise businesses. With an operating cash flow of around ₹15,000 crore, its balance sheet remains healthy, and there is nothing to complain about from a company or stock perspective.

Also Read: Supreme Court’s written order on Vodafone Idea sparks debate on scope of AGR relief.

Malhotra summed up the sector outlook with cautious optimism, saying that while Airtel and Jio are well-positioned, Vodafone Idea’s turnaround will hinge on several factors.

For the entire interview, watch the accompanying video

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