Vodafone Idea shares slip after sharp rally to near two-year high; still up 15% in August

Shares of Vodafone Idea edged lower in Thursday's trade, August 27, falling 0.5% to ₹14.95 apiece as investors appeared to book profits following the stock's recent stellar rally, which pushed it close to a two-year high.

Multiple positive developments, along with expectations of a potential tariff hike, have helped the stock emerge as one of the top performers in the large-cap space. Earlier this week, Vodafone Idea shares climbed to ₹15.37, a level not seen since September 2024, and the stock has gained around 15% so far in August.

On Tuesday, the stock surged 8%, marking its biggest single-day jump in more than three months, after a Money Control report showed that the Delhi High Court had criticised the Income Tax Department's handling of tax refunds, saying it presented a "grim picture" of the state of affairs in the department.

The court also directed the revenue to release ₹53.09 crore to Vodafone Idea along with applicable interest. Later, the company clarified to the stock exchanges that the matter was a routine income tax issue and stated that the amount involved did not cross the materiality threshold required for formal disclosure under Regulation 30 of the SEBI Listing Regulations.

Additionally, media reports also suggested that the telecom operator is looking to raise around ₹35,000 crore, including a ₹25,000 crore loan and ₹10,000 crore as a line of credit, further aiding positive sentiment towards the stock.

During the company's earnings call, Vodafone Idea (Vi) CEO Abhijit Kishore said the company has already raised ₹6,400 crore as the first tranche of funds, including ₹1,183 crore from warrants and debt proceeds, through ECB and Indian private banks.

Meanwhile, expectations are also building that another round of tariff hikes could take place in 2026, as the previous revision was implemented in July 2024.

Vodafone Idea share price recovers over 130% in a year

Over the last one year, the shares have staged a strong comeback, rising from ₹6.50 to around ₹15, translating into a gain of nearly 131%.

The rally has not only helped the stock recover a significant portion of its earlier losses but has also propelled the company's market capitalisation above the ₹1 lakh crore mark, which now stands at around ₹1.6 lakh crore.

Improving financials, rising ARPU, and a recovery in the subscriber base have collectively supported the stock's bull run. In the June quarter, the company reported a net loss of ₹3,754 crore, narrower than the net loss of ₹6,608 crore recorded in the corresponding quarter last year.

Its consolidated revenue from operations stood at ₹11,689 crore during the quarter, marking a 2.4% increase from ₹11,023 crore in the June 2025 quarter. Average revenue per user (ARPU), a key monthly revenue metric reported quarterly, increased to ₹195, up 10.2% year-on-year (YoY).

The improvement in operating metrics has also coincided with an expansion of the company's network. During the June quarter, the company said it had expanded its 5G coverage to over 200 cities across 17 key circles where it holds 5G spectrum.

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