Our positive thesis on Idea is premised on the proposed merger with Vodafone, and delivery on guided synergies of Rs 140bn, with ~60% in opex from the fifth year of merged operations. BUY with a TP of Rs 120. Our TP is based on pro-forma financials of the merged entities, and factors in modest synergies. Ideas 2QFY18 numbers came in weak, as expected. Sequentially, revenue declined 8.6%, EBITDA 19.9%, subscribers 3.5% and ARPU 6.4%. Yet, healthy growth in data usage and strict cost control measures were key positives.