Vodafone Idea Shares Jump 3% Today as Telecom Stock Rises 75% in Three Months Amid Strong Market Momentum

Shares of Vodafone Idea hit an over 13-month high of ₹10.78 gaining 3 per cent on Friday. In the past three trading days, the stock price of the telecom service provider has rallied 12 per cent after the company announced its financial results for the second quarter of 2025-26 (Q2FY26). In the past one week, the Vodafone Idea stock has surged 15 per cent, as compared to 2.5 per cent rise in the BSE Sensex. Further, in the past six months, it soared 54 per cent, as against a 4.5 per cent gain in the benchmark index. The market price of Vi has bounced back 75 per cent from its 52-week low of ₹6.12 touched on August 14, 2025.

Vi narrowed its consolidated net loss during September quarter (Q2FY26) to ₹5,584 crore. The company had posted a net loss of ₹7,176 crore in the same period last year (Q2FY25). The company narrowed losses owing to a drop in finance costs, which the company said came from settlements from vendors which were earlier provisioned into its accounts. Lower forex fluctuation also contributed to the improved financials.Analysts at JM Financial Institutional Securities raised target price to ₹11 (from ₹9.5) assuming ~₹16,000 crore relief from the government in relation to VIL’s AGR dues. The brokerage firm maintains ADD on Vi. Sharper-than-expected tariff hikes, strong subscriber growth and significant debt waiver from the government and Vi’s subscriber growth being significantly above our assumption are upside risks to our estimates and valuation.

According to Motilal Oswal Financial Services (MOFSL), the recent Supreme Court judgement allowing the Government of India (GoI) to re-evaluate the AGR dues for Vi is a positive outcome and could lead to its long-pending debt raise. However, besides the potential reduction in AGR dues (brokerage firm assumes ~50 per cent waiver), Vi also needs favorable payment terms for both AGR as well as spectrum dues, along with tariff hikes and a reduction in the competitive intensity on customer acquisitions, to ensure a sustained revival.The brokerage firm in the Q2 result update said that they note that the latter two factors are not entirely in Vi’s control, and analysts would expect competitive intensity to increase if Vi becomes competitive on subscriber additions.The government became Vodafone Idea’s largest shareholder in March this year after converting dues worth Rs 36,950 crore into equity, taking its stake to about 49%. In 2023, the Centre had also acquired a 33% stake by converting statutory dues of over Rs 16,000 crore.