Vodafone Idea shares rise on news reports of relief measures by PMO

Stock Market Today: Vodafone Idea shares gained in the morning trade on Friday, August 22, despite the weak Indian stock market, after news reports suggested relief measures are likely to be announced by the prime minister's office (PMO).

The market expectations remain high on some government measures to support the debt-laden Vodafone Idea. The significantly high government dues on Vodafone Idea include AGR dues and deferred spectrum to be paid over the years. A Mint report suggests that some relief measures will be announced by the prime minister's office, which lifted the investors' hopes.

Vodafone Idea Share price movement

Vodafone Idea shares opened at ₹6.68 on the BSE on Friday. At the time of opening, Vodafone shares were more than 1% higher compared to the previous day's closing price of ₹6.56. Vodafone Idea share price, thereafter, gained momentum and touched an intraday high of ₹6.85, which meant gains of more than 4%. 

However, Vodafone Idea share prices are down significantly from the 52-week high of ₹16.55 seen on August 29 last year.

What street and analysts expect?

The Vodafone Idea Q1 result performance had remained significantly better compared to the previous year; nevertheless, analysts at Motilal Oswal Financial Services (MOFLS) had said, “In the absence of relief on AGR dues (around ₹16400 crore) and the closure of debt raising, annual repayments starting Mar’26, Vodafone Idea's planned capex of ₹500-550 crore remains in jeopardy, potentially resulting in higher subscriber churn.”

Vodafone Idea has been losing customers, and the pace may only reverse once the investments are made in the network and services. The benefits of tariff hikes are also limited compared to peers, as its customer base remains under pressure.

As per MOFSL data, Vodafone Idea's subscriber count of 197.7 million decreased by 0.5 million sequentially, compared to a 1.6 million decline in 4QFY25. MOFSL post Q1 had cut FY27-28 revenue and EBITDA estimates by ~4-5%, each driven by higher subscriber declines.

Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.