Vodafone Idea’s stock reached a one-year high, marking its strongest week in months. This surge is driven by positive developments, including better-than-expected quarterly results where financial losses narrowed and revenue increased.
Vodafone Idea investors finally have something to cheer about. The telecom company’s stock climbed another 6% on Friday, touching a one-year high of Rs 11.08 and crossing its FPO price of Rs 11 for the first time since September 2024. With four straight days of gains, the stock is now up 14% this week, putting it on track for its strongest weekly performance in three months.
Why the Sudden Rally?
A mix of good news has turned sentiment around for the struggling telecom operator.
Better-than-expected quarterly results, a fresh round of brokerage upgrades, talk of tariff hikes next year, and the Supreme Court allowing the Centre to consider full relief on the company’s dues have all boosted investor confidence.
Q2 Results: Loss Narrows, Revenue Improves
Vodafone Idea still posted a loss in the September quarter, Rs 5,524.2 crore, but that number is shrinking. It’s a marked improvement from the Rs 7,176 crore loss last year and Rs 6,608 crore in the June quarter.
Revenue also inched up 2.4% to Rs 11,194.7 crore, helped largely by higher user spending.
One bright spot: ARPU (average revenue per user) came in at Rs 180, beating expectations of Rs 166. That jump was driven by customers upgrading to better plans and the impact of past tariff hikes.
More Users Shifting to 4G and 5G
The company ended the quarter with 127.8 million 4G/5G subscribers, an increase from 125.9 million a year ago. Vodafone Idea’s push to expand 4G coverage seems to be paying off as more users migrate to faster networks.
To keep the momentum going, the company said it continues to invest aggressively in network infrastructure. Its capex for the September quarter stood at Rs 17.5 billion, with long-term spending plans of Rs 500–550 billion still on the table.