Voda Idea, Indus Towers soar up to 24% in Dec; stocks at 52-week highs

In the calendar year 2025, Vodafone Idea and Indus Towers share prices have soared 52 per cent and 24 per cent, respectively, as against a 8 per cent rise in the BSE Sensex.

Share price of Vodafone Idea, Indus Towers today

 

Shares of Vodafone Idea and Indus Towers hit their respective 52-week highs, gaining 2 per cent each on the BSE in Wednesday’s intra-day trade.

 

Among individual stocks, Indus Towers was up 2.4 per cent at ₹432.90 in intra-day deals. The stock price of the telecom infrastructure company surpassed its previous high of ₹429.90 touched on July 3, 2025. Share price of telecom service provider, Vodafone Idea was up 2 per cent at ₹12.32, its highest level since September 2024.

 

Meanwhile, in the month of December 2025, these 2 stocks have outperformed the market with Vodafone Idea up 24 per cent, and Indus Towers rallying 8 per cent. In comparison, the BSE Sensex was down 1 per cent during the month.

 

 

In the calendar year 2025, Vodafone Idea and Indus Towers have zoomed 52 per cent and 24 per cent, respectively, as against a 8 per cent rise in the benchmark index.  CATCH STOCK MARKET LIVE UPDATES TODAY

Why are Vodafone Idea, Indus Towers outperforming market?

 

As on September 30, 2025, Indus Towers had 256,074 macro towers in its portfolio and 415,717 corresponding co-locations and is the market leader in India in terms of the number of co-locations. 

 

In FY25, the company reversed the provisions made towards doubtful receivables created in FY23 after it received all the past overdue amounts from one of the customers that translated into a material improvement in its cash flows, liquidity and debt profile. Going forward, ICRA expects the collections to be timely and in the absence of these provisions, the operating margins are also expected to remain healthy.

 

Analysts at Ambit Capital Institutional Equities raised the telecom sector’s FY25-42 revenue compound annual growth rate (CAGR) estimate by 1 per cent as the brokerage firm continues seeing government's decisive support for Vodafone Idea. Their intent to halt further equity conversion and offer part adjusted gross revenue (AGR) waiver solidifies the industry's "3-Player National Champion" structure, enabling continuous tariff hikes, the brokerage firm said in the sector report.

 

Vodafone Idea on November 11, 2025, in Q2 earnings conference call said that the Hon’ble Supreme Court via its judgement dated October 27, 2025 and November 3, 2025 has permitted the Government of India to reconsider and take an appropriate decision with reference to the additional AGR demand as well as to comprehensively reassessing and reconciling all AGR dues, including interest and penalty, up to the financial year 2016-17. The management said the company is in discussion with the Department of Telecommunication (DoT) for next steps on this matter.

 

Meanwhile, Ambit Capital expects a 15 per cent tariff hike in January to March 2026 quarter (Q4FY26) to act as the primary trigger. Airtel remains the brokerage firm’s preferred large cap over Reliance Industries to superior free cash flow (FCF) conversion.

 

But Indus Towers remains the brokerage firm’s absolute top pick. It offers a unique "Utility + Growth" profile, benefiting from Vodafone Idea's survival-driven network expansion. Analysts expect Indus to resume dividend payouts from March 2026 and deliver high-margin, tenancy-led growth. The stock trades at 7x FY27E cash EBITDA, 50 per cent discount to global peers.

 

The brokerage firm has ‘BUY’ rating on Indus Tower and Vodafone Idea with a target price of ₹559 and ₹15.1, respectively.

 

Analysts now factor in AGR-relief for Vodafone Idea from the government (likely by March 2026) as a precedent to the upcoming price hike. Hence, while the brokerage firm said it continues to expect a 15 per cent hike in FY26, and factor it in for Q4FY26 vs. December 2025 previously. Vodafone Idea’s need for tariff repair and strategic share sales by Jio’s investors would be the drivers of biennial tariff hikes subsequently.

 

Analysts believe that a substantial waiver and a moratorium on AGR payments will enable Vodafone Idea to raise debt and equity funding. But servicing debt payments and providing a return to equity investors is predicated on subsequent tariff hikes, it added.  =================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.