Vodafone Idea shares drop 3%: TRAI to examine Airtel, Jio concerns over customer switching

Shares of Vodafone Idea (Vi) dropped as much as 3.34% to ₹14.47 apiece on the NSE on Tuesday, September 15, after TRAI Chairman AK Lahoti said the regulator will examine representations received from Bharti Airtel and Reliance Jio over concerns regarding Vi’s alleged attempt to nudge telecom customers to switch to its network.

TRAI stands for Telecom Regulatory Authority of India.

Lahoti, responding to a question on whether TRAI is examining the matter raised by Bharti Airtel and Reliance Jio against Vodafone Idea, however, declined to specify whether all three telecom operators will be called for a detailed discussion or follow-up query on the issue.

When contacted, a Vodafone Idea spokesperson, in response to a PTI query, said: "At Vi, we believe in fair competition, strength of our products and the value we deliver to our customers. At all times, we conduct our business in compliance with the law".

The comments came in the backdrop of concerns raised by the telcos over rival Vodafone Idea's alleged practices aimed at nudging customers to switch networks.

Recently, one of the operators approached the TRAI over alleged circulation and promotion by Vodafone Idea of tariff benefits specifically linked to customers porting their mobile connections to the VIL network.

In a letter, the operator highlighted TRAI's past stated position that extending preferential or differential tariff benefits exclusively to customers porting from another network is impermissible and amounts to an inducement for churn.

The letter also urged TRAI to direct VIL to immediately cease the circulation of such promotional communications and to submit a compliance report confirming withdrawal of all ads, campaigns, and sales practices that link tariff benefits to porting into the VIL network.

JPMorgan on India Telecom

JPMorgan raised the question of whether Vodafone Idea can regain market share following bank funding for capex. While Idea’s capex share has risen, its subscriber and revenue shares have not seen a similar improvement.

Its subscriber share trends are also not materially different across circles. JPMorgan believes more capex is needed, but questions whether it will be enough to drive a meaningful improvement in market share.

The investment bank prefers Bharti Airtel and Hexacom, given their attractive valuations and strong competitive positions, while maintaining an Underweight stance on Idea as optimistic estimates appear to be baked into the stock.

Vi AGR reassessment

The adjusted gross revenue (AGR) reassessment significantly strengthened Vi's balance sheet and improved visibility on future cash obligations, its chairman Kumar Mangalam Birla said in August 2026.

The current fiscal year will be a year of execution and delivery for Vodafone Idea, which has already placed capex orders worth ₹9,000 crore, Birla said while speaking at the 31st annual general meeting.

"As I look ahead, I believe FY27 will be a year of execution and delivery for your company. The foundations have been laid. Significant progress has been made in addressing legacy challenges, restoring financial flexibility, investing in network infrastructure and rebuilding momentum in the business," he noted.

Since the merger of Vodafone and Idea, the combined entity has achieved its first net subscriber additions in the June quarter of FY27.

April-June 2026 was the first quarter after a long gap when Vi recorded growth in subscriber base on a quarterly basis.

On a year-on-year (YoY) basis, Vi recorded around a 2% decline in subscriber base to 19.31 crore in the June quarter from 19.77 crore a year earlier. However, the net addition of the company grew quarterly.

Birla said that the reduction in liability, together with the recognition of the present value of future payments, was one of the primary reasons for the one-time profit after tax of ₹34,552 crore.

"More importantly, it removed a major source of uncertainty by establishing a clear long-term repayment schedule," Birla said.