Vodafone Idea surges 5% in weak market on huge volume; here's why

According to reports, Vodafone Idea is in the final stages of closing debt funding from a State Bank of India (SBI)-led consortium of public sector banks.

Vodafone Idea share price movement

 

Vodafone Idea (Vi) share price surged 5 per cent to ₹14.75 on the BSE in Tuesday’s intra-day deals, extending its Monday’s 1 per cent up move, amid heavy volume in an otherwise weak market. The stock rallied in the last two days amid reports that Vi was in the final stages of closing debt funding from a State Bank of India (SBI)-led consortium of public sector banks.

 

In the past two weeks, the market price of Vi soared 14 per cent. It hit a 52-week high of ₹15.35 on June 15, 2026.

 

At 10:22 AM, Vi traded 4 per cent higher at ₹14.64, compared to 0.26 per cent decline in the BSE Sensex. A combined 427 million equity shares changed hands on the NSE and BSE.

 

 

What’s driving Vi stock price?

 

Business standard reported that Vi was in the final stages of closing debt funding from a State Bank of India (SBI)-led consortium of public sector banks. SBI is reportedly willing to release the money only after the other lenders approve their respective portions of the financing. 

 

Vi has already raised an initial ₹6,400 crore. This includes ₹1,183 crore from warrant proceeds issued to promoter Aditya Birla Group, with the remaining balance coming from foreign lenders (via External Commercial Borrowings) and private Indian banks. 

 

Vi is negotiating with a PSU bank consortium (6–7 banks led by SBI) to formalize the larger debt package. Vi has placed equipment/capex orders worth over ₹9,000 crore with network vendors like Nokia, Ericsson, and Samsung to support its expansion, ICICI Securities said in a note.

 

Vi- Business outlook

 

In the April to June 2026 quarter (Q1FY27), Vi’s revenue improved 6.0 per cent year-on-year (YoY) to ₹11,689 crore while cash earnings before interest, taxes, depreciation, and amortization (EBITDA) demonstrated double-digit growth of 13.5 per cent and stood at ₹2,475 crore. Vi also increased its subscriber base to 193.1 million customer’s vis-à-vis last quarter. Net subscriber addition which turned a corner in February last quarter continued its trajectory. The company delivered its first quarter of positive net subscriber additions since merger and Vi said it will continue this momentum.

 

Vi in the Q1 earnings conference call said the customer average revenue per user (ARPU) has been increasing for 20 consecutive quarters. The customer ARPU expansion over the last year has been driven primarily by premiumization which is evident from the company’s improving 4G/5G subscriber mix which stood at 67.4 per cent in Q1FY27 up from 64.4 per cent in Q1FY26 as well as higher data usage by per broadband subscriber, the company said.  The management said they are hopeful of closing the discussions with PSU banks led by SBI as well as continue work on other debt raise streams.  “FY26 was a year of resolution. FY27 begins a period of execution. The company enters this phase with greater financial clarity, improving operating performance and renewed capacity to invest. The priorities ahead are clear: execute the network investment programme, strengthen market competitiveness and translate a stronger balance sheet into sustained growth in customers and earnings”, Vi said in its FY26 annual report.

 

Recent ratings upgrade is helping debt fundraising conversations, and the pace of network investments should pick up once that is done. Vi’s survival and need for Jio’s Private equity (PE) and venture capital (VC) investors to profitably exit post-IPO should drive 15 per cent price hike by December 2026, analysts at Elara Capital said in the Q1 result update.

 

The brokerage firm expects 12 per cent biennial hikes thereafter. This should drive 12 per cent FY26-29E revenue compound annual growth rate (CAGR) as 2G users upgrade (35 per cent of subs) and operating leverage should help cash-EBITDA grow at 28 per cent CAGR. Revenue growth differential with Airtel at 310bps now vs 1,660bps a year ago. Estimates are unchanged.

 

‘While we remain Buyers on the hopes of supportive government stance, investors looking for lower risk upside exposure to India’s telecom tariff resets should consider owning Bharti Airtel and Indus instead,” analysts at Ambit Capital said with a target price of ₹18.7 for Vi.  Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.