Vodafone Idea shares end 13% higher in biggest single-day gain since April; what’s behind the rally?

Vodafone Idea Shares Today: Shares of Vodafone Idea rallied nearly 13 per cent on Friday, marking their biggest single-day gain since April 1, as reports surfaced about the Centre scouting for a Rs 8,800 crore investor to support the debt-laden telecom operator’s revival.

The stock surged to an intraday high of Rs 7.45 apiece, following a report by The Economic Times that said the government is looking to onboard an investor willing to acquire a 12–13 per cent stake in the company. The move could offer much-needed capital support to Vodafone Idea, which is battling a mounting debt pile and slipping market share.

The stock closed at 9.68 per cent higher at Rs 7.25 on the National Stock Exchange.

Govt stays invested, promoters may dilute

Currently, the government holds a 48.99 per cent stake in Vodafone Idea after converting past dues into equity. Promoters — Aditya Birla Group (ABG) and Vodafone Group Plc — hold 9.50 per cent and 16.07 per cent, respectively.

The report also indicated that both promoters may consider diluting their stake, although the government is expected to remain invested for the foreseeable future.

Heavy debt, mounting pressure

Vodafone Idea owes nearly Rs 83,400 crore in adjusted gross revenue (AGR) dues, with Rs 18,000 crore in annual payments scheduled from March 2026. Including interest and penalties, the total dues balloon to over Rs 2 lakh crore.

Despite earlier support, Minister of State for Communications Chandra S. Pemmasani had ruled out any additional relief for the company last month.

Analysts have warned that a collapse of Vodafone Idea could lead to a duopoly in India’s telecom market, dominated by Reliance Jio and Bharti Airtel.

Q1 results: Losses widen despite ARPU gains

In the June quarter (Q1 FY26), Vodafone Idea posted a consolidated loss of Rs 6,608 crore, compared to Rs 6,426.7 crore in the same quarter last year. The loss was driven by higher finance costs, which rose 7 per cent year-on-year to Rs 5,892.8 crore, and increased government levies of Rs 947 crore.

On the brighter side, revenue from operations rose 5 per cent year-on-year to Rs 11,022.5 crore, backed by a 15 per cent increase in average revenue per user (ARPU) to Rs 177.