Shares of Vodafone Idea Ltd (NSE: IDEA) traded marginally higher on Tuesday, February 11, after witnessing mild profit booking in the previous session. The stock gained 1.13% to ₹11.61, compared to the previous close of ₹11.48, reflecting cautious investor sentiment following recent sharp gains. On February 10, Vodafone Idea shares saw mild profit booking after a strong rally earlier this week.
On February 9, the stock had surged nearly 4% after reports emerged that promoter Kumar Mangalam Birla acquired an additional 45 lakh shares in the company. Earlier, Birla had purchased 2.21 crore shares on January 30 and 1.88 crore shares on February 1, taking his total recent acquisition to 4.09 crore shares, as per CNBC-TV18. Previously, Birla held a 0.02% stake in Vodafone Idea. Following the fresh purchases, the promoter and promoter group now collectively hold a 25.57% stake, while public shareholding stands at 74.43%, boosting investor confidence in the company’s turnaround prospects.
Stock Performance
Over the past one month, Vodafone Idea shares have gained nearly 3%, while in the last six months, the stock has surged an impressive 76%, indicating heightened trading interest and improving market confidence. On a year-on-year basis, the stock is up over 27%. At current levels, Vodafone Idea commands a market capitalisation of approximately ₹1.25 lakh crore.
Financial Performance
Vodafone Idea’s consolidated net loss narrowed to ₹5,286 crore in Q3FY26, compared to a loss of ₹6,609 crore in the same quarter last year. The improvement was mainly driven by service upgrades by customers, leading to better average revenue per user (ARPU).
Brokerage View
Meanwhile, Emkay Global Financial Services upgraded the stock to ‘Add’ from ‘Sell’ and doubled its price target to ₹12 from ₹6. The brokerage cited the government’s decision to provide a major moratorium on Vodafone Idea’s AGR liabilities, with minimal annual payments until FY35, as a key factor providing significant cash flow relief and a turnaround opportunity. The Government of India’s move to defer payment of AGR dues by an additional 10 years, without interest accrual on the frozen amount of ₹87,695 crore, has eased near-term liquidity concerns for the telecom operator.
Government Support Boosts Sentiment
In February 2023, the government had also converted Vodafone Idea’s debt of around ₹16,130 crore into equity, comprising interest from deferred AGR and spectrum instalments. These supportive measures have played a crucial role in stabilising the company’s financial position and restoring investor confidence.