Vodafone Idea's Capital Raise Falls Short of Stopping Market Share Erosion: Goldman Sachs

Goldman Sachs' recent analysis indicates that Vodafone Idea's capital raise, though beneficial, will likely be insufficient to halt its decline in market share. The company faces high debt and spectrum payments, and without substantial tariff hikes or government intervention, its financial stresses are expected to persist.

Goldman Sachs has expressed concerns regarding Vodafone Idea's recent capital raise, suggesting it will not sufficiently counter the telco's ongoing market share loss.

The brokerage firm predicts a further 300 basis points decline in market share over the next few years, linked to Vodafone Idea's lower capital expenditure compared to peers.

Additionally, Vodafone Idea faces significant adjusted gross revenue and spectrum payments starting FY26. ARPUs would need a significant rise to achieve financial stability, which seems improbable in the medium term, according to Goldman Sachs.

(With inputs from agencies.)