Shares of telecom company Vodafone Idea (Vi), which was once struggling to survive in the market, have gained such momentum in the last one and a half month that even the big giants are surprised. Since the beginning of April 2026, the company’s shares have jumped by about 61% and reached their new peak of 52 weeks. If we look at the figures of just the last one month, it has increased investors’ capital by 44%. At present this share is trading very close to its year’s highest level of Rs 13.71. In such a situation, the biggest question arising in the minds of common investors of the market is whether one should wash one’s hands in this fast flowing Ganga, collect profits and exit or would it be better to hold on for some time.
Vodafone Idea’s fortunes changed due to these 3 reasons
Market experts clearly say that this stormy rise in the shares of Vodafone Idea is no coincidence, rather there are some very strong reasons behind it. The biggest relief the company has received is from the Department of Telecommunications (DoT) of the government, which has reduced the AGR liabilities of the company by a huge 27%. This one decision has reduced the huge burden of cash from the company’s head. As soon as the green signal was received from the government, the company’s promoter Aditya Birla Group also expressed its confidence in it and made a big announcement of new investment of Rs 4,730 crore in the company through its Singapore unit. Along with this, the company is now hopeful of getting new loans from banks soon, which has created a positive environment in the market.
The real mathematics hidden behind profit figures
The number of customers leaving the company has decreased and the average revenue per customer (ARPU) has also increased. This is the reason why rating agency ICRA has upgraded the company’s outlook from ‘stable’ to ‘positive’ category. Talking about the financial front, Vodafone Idea has earned a record net profit of Rs 51,970 crore in the fourth quarter ending March 2026. However, common investors need to understand one thing here that this huge profit has not come from the day-to-day functioning of the company, but is visible due to one-time accounting profit from revaluation of AGR liabilities. If we look at the operational revenue of the company, it has increased by only 3% on annual basis to Rs 11,332 crore.
What are the leading brokerage houses saying?
Despite all the good news, the journey ahead for Vodafone Idea is not completely free from thorns. The major challenges like direct challenge from very strong and financially capable companies like Reliance Jio and Bharti Airtel, huge debt burden and huge capital required to expand 5G network across the country still stand the same. This is the reason why big brokerage houses in the country and abroad are not able to form a consensus regarding this share.
Foreign brokerage firm Citi seems quite enthusiastic about this stock and has set a target price of Rs 14 while maintaining the ‘Buy’ rating. Citi believes that the fresh capital from the promoters and reduction in AGR dues have improved the financial condition of the company, although they still keep it in the high-risk category.
On the other hand, big firms like Nomura and JP Morgan are advising to exercise some caution. He believes that the biggest test for the company in the coming times will be to raise adequate funding from banks and strengthen the network to compete with competitors.
Other brokerages like CLSA, Nuvama, Motilal Oswal and Axis Capital are also not in favor of playing too aggressive bets on this stock at present and are asking to adopt the strategy of ‘wait and watch’.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money related decisions.
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