Vodafone-Idea stock hits all-time low; more downsides in coming days

While the market share loss was 50 basis points in July, further losses will bring its subscriber market share below the 40% mark

Vodafone Idea hit an all-time low of Rs 36.80 on worries of weak September quarter earnings, additional subscriber losses and the question of funding additional capital expenditure given the high debt and loss-making operations.

What will make the situation worse for the company is the sharp depreciation of the rupee which increases outgo on foreign-denominated loans as well as equipment imports. 

The near-term trigger for India’s largest telecom operator with a subscriber market share of 40.6 per cent would be the September quarter’s numbers. The merged entity is expected to report a single-digit operating profit margin of 9.2 per cent compared to