Vodafone Idea up 10%, logs sharpest intra-day rally in 4 months; here's why

Voda Idea share price rises following reports that DoT has proposed "multiple relief options", including a further two-year pause on paying the statutory dues under moratorium to the PMO.

Vodafone Idea (Vi) share price today

 

Shares of Vodafone Idea (Vi) soared 10 per cent to ₹7.21 on the BSE in Friday’s intra-day trade on the back of heavy volumes in an otherwise weak market. In comparison, the BSE Sensex was down 0.71 per cent at 81,419 at 02:19 PM.

 

The average trading volumes at the counter jumped nearly three-fold, with a combined 1,338 million equity shares changing hands on the NSE (1,194 million shares) and BSE (144 million shares). There were pending buy orders for a combined 24 million shares on these exchanges, data shows.

 

The stock of the telecom services provider company recorded its sharpest intra-day gain in the past four months. Earlier, on April 21, 2025, Vi had surged 12 per cent in intra-day trade.

 

 

In the past one week, Vi has outperformed the market by surging 17 per cent, as compared to 1.1 per cent rise in the BSE Sensex. 

 

However, in the past one year, Vi has underperformed the market by falling 56 per cent, as against 0.55 per cent gain in the benchmark index. The stock had hit a 52-week low of ₹6.12 on August 14, 2025.

 

Why Vi shares are in focus since the past one week?

 

According to media reports, the Prime Minister’s Office (PMO) has received a proposal to steady Vi. In an informal note to the PMO, the Department of Telecommunications (DoT) has proposed “multiple relief options", including a further two-year pause on paying the statutory dues under moratorium currently. The PMO will take the final decision on whether any relief measures need to be extended.

 

Meanwhile, Vi has announced a strategic partnership with IBM to optimize operations, enhance service reliability, improve customer experiences (CX), and accelerate the delivery of digital initiatives. This will be achieved using artificial intelligence (AI) and a unified DevOps execution model driven by automation.

 

According to media reports, Jio has discontinued its entry-level 1 GB/day plan (which was priced at ₹209/22 days and ₹249/28 days). Analysts at JM Financial Institutional Securities believe it’s highly likely that Bharti and Vi will also follow Jio and discontinue their 1GB/day plans as well (which is currently priced at ₹299/28 days) as both Bharti and Vi’s managements have been aggressively pushing for industry wide tariff repair to improve RoCE given the capex-intensive nature of the business. 

 

Around 20-25 per cent of Vi’s subs are likely on 1GB/day plan; hence, if Vi also discontinues 1GB/day plan, it could lead to its ARPU rising by ₹13-14/month or 7-8 per cent and increase its FY27 EBITDA by ₹900-1,100 crore or 3-4 per cent and valuation by ₹0.6-0.7/share or 6-8 per cent.

 

Meanwhile, despite equity infusion and acceleration in the network capex, Vi continues to lose market share to peers due to lower average revenue per user (ARPU) translation from tariff hikes, given its inferior subscriber mix and elevated subscriber churn. While Vi’s subscriber losses have moderated further in June 2025 quarter (Q1FY26), analysts at Motilal Oswal Financial Services believe that without the closure of its debt raise, Vi’s plans for a significant capex cycle (₹50,000-55,000 crore over the next 2-3 years) remain in jeopardy, potentially resulting in elevated churn going ahead.

 

Further, tariff hikes do not benefit Vi as much as its peers. In the absence of a relief on adjusted gross revenue (AGR) dues (~₹16,400 crore annual repayments starting March 2026) and closure of debt raise, Vi’s planned capex remains in jeopardy, potentially resulting in higher subscriber churns, the brokerage firm said.