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  1. Vodafone Idea shares surge over 11% in three sessions; here is why

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Vodafone Idea shares surge over 11% in three sessions; here is why

Upstox

2 min read | Updated on June 26, 2025, 11:18 IST

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SUMMARY

Vodafone Idea shares came under buying interest after a report suggested that government is weighing fresh relief measures for the loss making telecom giant including extending the repayment period of adjusted gross revenue (AGR) dues.

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Vodafone Idea

Vodafone Idea shares have surged 11.45% in past three sessions. | Image: Shutterstock

Vodafone Idea shares have been on investors' radar for past three sessions as the stock has surged 11.45% to hit an intraday high of ₹7.30 on Thursday, June 26. Vodafone Idea shares came under buying interest after a report suggested that government is weighing fresh relief measures for the loss making telecom giant including extending the repayment period of adjusted gross revenue (AGR) dues and altering the interest structure, as it seeks to prevent a collapse of the struggling telecom operator, The Economic Times reported, citing people familiar with the matter.
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Among the options under consideration is extending the AGR repayment term from six to 20 years, alongside replacing the current compound interest model with simple interest, ET reported.

The report was, however, later denied by Vodafone Idea and the company said that it did not receive any information regarding the same from the government.

Meanwhile, another report suggested that the company is talking to lenders to raise ₹25,000 crore to bolster its network and compete better with large rivals.

State Bank of India will lead a consortium of banks, Bloomberg reported citing people who did not want to be named.

In April, the government had raised its stake in Vodafone Idea to 48.99% after converting a part of its spectrum payment dues into equity.

Vodafone Idea Q4 loss narrows

Vodafone Idea's consolidated net loss narrowed to ₹7,166.7 crore in March quarter, compared to a loss of ₹7,674.6 crore in the year-ago period, the telco reported late at night on Friday, May 30.

During the quarter under review, the telecom company’s revenue from operations stood at ₹11,013.5 crore, jumping 3.8% year-on-year (YoY) from ₹10,606.8 crore in the fourth quarter of FY24.

Vodafone’s operational efficiency improved as its EBITDA (earnings before interest, tax, depreciation and amortisation) surged 7.47% YoY to ₹4,659.7 crore in Q4FY25, as against ₹4,335.8 crore. Its EBITDA margin expanded to 42.3% from 40.9%.

The average revenue per user (ARPU), a key monitorable for telecom companies, grew 14.2% YoY to ₹175 for the quarter, compared to ₹153 in the corresponding period a year ago. This growth was bolstered by tariff hikes on its prepaid and postpaid plans and customer upgrades.

As of 11;09 am, Vodafone Idea shares traded 1.4% higher at ₹7.23 outperforming the SENSEX which was up 0.4%.

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