Vodafone Idea stock soars 6%, nears 52-week high; here's why

Voda Idea stock counter saw huge trading volumes, with a combined 726.89 million equity shares changing hands on the NSE and BSE till 02:21 PM on Friday.

Vodafone Idea share price movement

Share price of Vodafone Idea moved higher by 6 per cent to ₹14.98 on the BSE in Friday’s intra-day deals amid heavy volumes on expectations of an improvement in business performance. The stock price of the telecom services company was quoting close to its 52-week high of ₹15.26 touched on June 5, 2026. 

The counter has seen huge trading volumes, with a combined 726.89 million equity shares changing hands on the NSE and BSE till 02:21 PM.

What’s driving Vodafone Idea stock price?

Vodafone Idea is at an inflexion point with the prospects of the telecom-services provider looking up, Aditya Birla group chairman Kumar Mangalam Birla said at the company’s extraordinary general meeting (EGM) on Thursday. 

“I think we have good times ahead ... there will continue to be a few challenges but I still believe that we are at a point of inflexion,” Birla said on Thursday, responding to shareholders in his first address since his appointment as non-executive chairman in May, the Business Standard reported.  CLICK HERE FOR FULL REPORT

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Brokerages view on telecom sector, Vodafone Idea

The telecom industry’s evolution from basic voice services to full-scale digitalization is fueling a data consumption boom in India and globally. India is at the forefront of this shift, due to three structural changes: the most affordable tariffs, broad smartphone adoption, and extensive network expansion into the hinterland. Industry consolidation (from 17 operators to four), combined with sticky, high volume data use, sets the stage for a sustained rise in average revenue per user (ARPU) analysts at Elara Capital said in the telecom sector report. 

The brokerage firm models in an ARPU CAGR of 7 per cent during FY26-29E, which should reduce India’s tariff gap with global markets and restore attractive returns on invested capital. Higher ARPU, improving cashflow generation and moderating capex would drive balance sheet deleveraging. As the sector transitions from consolidation into a compounding phase, analysts expects free cashflow for operators to grow in the double digits. 

Cash infusion by promoters and the government’s decision to freeze Vodafone Idea’s adjusted gross revenue (AGR) liabilities at ₹87,700 crore and extending repayments over multi-year, significantly reduces near-term cashflow pressure, thereby enabling expansion by Vodafone Idea. More importantly, the conversion of ₹37,000 crore dues into equity has resulted in the government holding a 49 per cent stake in Vodafone Idea, aligning policy intent with the company’s operational continuity, the brokerage firm said. 

Further, ICRA upgraded the credit ratings of Vodafone Idea’s instrument, driven by a change in rating approach for Vodafone Idea, wherein the entity’s rating factors in the support from the Aditya Birla Group (ABG; promoter group) which has further strengthened with the re-appointment of Kumar Mangalam Birla as the chairman of the board and with the proposed equity infusion of approximately ₹4,730 crore through a preferential allotment of warrants to a promoter group entity in May 2026. 

These developments reflect strong confidence in Vodafone Idea’s potential and long-term growth trajectory. The ABG has expressed its continued support to Vodafone Idea to ensure timely debt servicing and to ensure continuity of operations and improvement in its market position. The ABG has been consistent in providing operational and financial support to Vodafone Idea and will continue, going forward, the rating agency said.  ================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.