Vodafone Idea Shares Rally 4% on Promoter Buying and Brokerage Upgrade
Vodafone Idea share price witnessed a significant surge of nearly 4% during early trading hours on Monday, driven by robust buying interest in the market. The telecom giant's shares climbed as much as 3.93% to reach ₹11.57 per share on the Bombay Stock Exchange (BSE). This notable uptick in Vodafone Idea's stock value follows a strategic move by promoter Kumar Mangalam Birla, who acquired additional shares in the company over the past week.
Kumar Mangalam Birla's Strategic Share Purchase
Prominent industrialist Kumar Mangalam Birla purchased a total of 4.09 crore Vodafone Idea shares, which represents 0.03% of the company's outstanding equity. This acquisition occurred between January 30 and February 1 through open market transactions. According to the latest shareholding pattern available, KM Birla held 1.94 crore equity shares, equivalent to a 0.02% stake, in Vodafone Idea as of December 2025. Collectively, the company's promoters maintain a substantial 25.5% stake in the telecom operator.
Emkay Global Turns Bullish on Vodafone Idea
In a significant development, brokerage firm Emkay Global Financial Services has upgraded its rating on Vodafone Idea shares from 'Sell' to 'Add'. Furthermore, Emkay has doubled its target price for the telecom company, raising it to ₹12 per share from the previous ₹6. This optimistic revision is based on an improved outlook for Vodafone Idea, primarily driven by recent government interventions.
The ratings upgrade comes in the wake of the government approving a major moratorium for Vodafone Idea's Adjusted Gross Revenue (AGR) liabilities. This arrangement allows for minimal annual payments until the fiscal year 2035, providing substantial financial relief to the company.
Pranav Kshatriya, Senior Research Analyst at Emkay Global Financial Services Ltd., commented:"We believe this will provide significant cash flow relief and a turnaround opportunity. The relief reduces the net present value (NPV) of the burden by 60–80%, easing immediate survival pressure, along with the possibility of further reduction on reassessment of AGR dues. This will enable VI to access bank funding for 4G/5G expansion, helping the company arrest subscriber churn and market-share loss."
Impact of Government Relief on AGR Dues
With the government freezing AGR dues, the net present value of these liabilities has dropped dramatically to approximately ₹50,000 crore, compared to ₹87,000 crore earlier. Kshatriya noted that there is further scope for reduction in liabilities if a favorable outcome emerges from the recalculation and reconciliation processes. While the long-term sustainability of Vodafone Idea is no longer a primary concern, Emkay emphasizes that the company must execute its strategies effectively to gain subscriber market share and migrate its user base from 2G to 4G/5G networks.
Key Risks and Performance Metrics
Despite the positive developments, Vodafone Idea faces several key risks, including:
- Inability to increase subscriber market share
- Challenges in significantly raising Average Revenue Per User (ARPU) through tariff repairs
- Difficulties in upgrading the subscriber base from 2G to 4G/5G technologies
In terms of stock performance, Vodafone Idea share price has demonstrated strong momentum across various time frames:
- Gained 2% over the past month
- Rallied 20% in the last three months
- Jumped 77% over six months
- Risen 22% in one year
At 10:40 AM, Vodafone Idea share price was trading 3.77% higher at ₹11.55 per share on the BSE, reflecting sustained investor confidence in the telecom operator's prospects.
