Vodafone Idea share price jumps 6% in a weak market; is it the right time to buy the telecom stock?

Vodafone Idea share price jumped as much as 6% in morning trade on the BSE on Wednesday, 12 August, defying weak market sentiment. The telecom stock opened flat at ₹12.92 and jumped 6% to an intraday high of ₹13.70, looking set to extend gains for the fourth consecutive session.

In four consecutive sessions, Vodafone Idea shares have gained more than 8%. So far this month, the stock has jumped nearly 4%, while year-to-date, it has gained 16%. As per BSE data, the stock has delivered multibagger returns of 108% over the last one year.

The April-June quarter (Q1FY27) results, which showed a healthy rise in ARPU (average revenue per user), have boosted positive sentiment about the stock.

Vodafone Idea Q1FY27 results

On August 10, Vodafone Idea reported a net loss of ₹3,754 crore for Q1FY27, lower than the ₹6,608 crore loss recorded in the corresponding quarter last year.

Its consolidated revenue from operations stood at ₹11,689 crore, a 2.4% increase from ₹11,023 crore in the June 2025 quarter. It reported EBITDA of ₹5,034 crore, up from ₹4,612 crore in the year-ago quarter, with margins improving to 43.1% from 41.8%.

ARPU increased to ₹195, up 10.2% YoY. The company said this was the highest ARPU growth in the industry.

Is it the right time to buy Vodafone Idea stock?

Most brokerage firms have maintained their views on the stock after the company's Q1 results.

Motilal Oswal Financial Services has maintained a 'neutral' rating on Vodafone Idea shares with a revised target price of ₹11, based on DCF backed nearly 14.3 times September 2028E EV/EBITDA.

Motilal has raised its FY27-28E revenue by nearly 1-3%, driven by nearly 1-2% higher ARPU assumption, while we fine-tune our FY27-28E pre-Ind AS EBITDA for stronger Q1 and potential increase in network operating expense.

"We believe Vodafone Idea’s revival hinges on: (1) sustained tariff hikes or change in tariff construct, (2) stabilisation of consumer wireless subs trends, (3) more rational competition on subscriber acquisition, and (4) continuation of benign regulatory regime, with requirement of further relief on spectrum dues," said Motilal Oswal.

Brokerage firm JM Financial maintained an 'add' view on the stock but revised the target price to ₹14.7 from ₹15.

It cut Vodafone Idea's FY27–FY29 revenue, EBITDA, and PAT estimates by 1–4%, factoring in some delay in tariff hike.

What do tech charts signal about Vodafone Idea shares?

As per Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, Vodafone Idea is showing a positive technical setup on the weekly chart.

The stock is trading comfortably above the 21-week EMA at ₹13.25, 26-week EMA at ₹12.44, and 200-week MA at ₹10.28, indicating a sustained improvement in the long-term trend.

Patel further highlighted that the stock has also moved above the Ichimoku cloud, supporting the bullish structure. RSI stands at 58.29, reflecting positive momentum without entering the overbought zone.

DMI remains favourable, with +DI at 27.15 above -DI at 17.63, while ADX at 28.07 indicates a reasonably strong trend.

"Immediate support is placed near ₹12.85– ₹12.40, while ₹13.70– ₹14.00 is the key resistance zone. A decisive breakout above ₹14 could open further upside potential," said Patel.

Vipin Kumar, AVP-Research at Globe Capital Market, pointed out that Vodafone Idea shares are moving in a higher-highs and higher-lows formation within a broader consolidation range (6–20 spot zone).

On Wednesday, the stock formed a fresh buying pivot around its key price support—the 38.2% Fibonacci retracement level of the previous up-move from ₹8.13 to ₹15.34. This bounce from crucial support, combined with positive momentum, indicates that buyers are aggressively defending lower levels.

"Considering this bullish chart structure, we expect the stock to head north in the coming sessions, with a near-term target testing the ₹15 to ₹15.5 zone. A sustained move above this resistance could trigger a broader breakout toward the upper bound of the range," said Kumar.

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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.