Vodafone Idea Limited (NSE:IDEA) Just Released Its First-Quarter Earnings: Here's What Analysts Think

As you might know, Vodafone Idea Limited (NSE:IDEA) recently reported its quarterly numbers. Revenues of ₹105b arrived in line with expectations, although statutory losses per share were ₹1.03, an impressive 47% smaller than what broker models predicted. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Vodafone Idea

After the latest results, the 19 analysts covering Vodafone Idea are now predicting revenues of ₹473.7b in 2025. If met, this would reflect a solid 12% improvement in revenue compared to the last 12 months. Losses are expected to increase substantially, hitting ₹5.11 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of ₹473.7b and losses of ₹5.11 per share in 2025.

As a result there was no major change to the consensus price target of ₹12.46, implying that the business is trading roughly in line with expectations despite ongoing losses. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Vodafone Idea at ₹23.00 per share, while the most bearish prices it at ₹1.50. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Vodafone Idea's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 16% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.2% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.0% per year. Not only are Vodafone Idea's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹12.46, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Vodafone Idea going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with Vodafone Idea (at least 1 which makes us a bit uncomfortable) , and understanding these should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.