Vodafone Idea shares surged nearly 7% to a new 52-week high of ₹15.09 on the NSE on Wednesday, even as the Sensex and Nifty crashed, as reported by The Economic Times. The stock has demonstrated remarkable momentum with a 46% rally in one month and an impressive 121% surge in one year. The counter witnessed huge trading volumes of 936.66 million shares changing hands on both NSE and BSE during Wednesday's session. The company currently commands a market capitalisation of more than ₹1.62 lakh crore, reflecting strong investor confidence in the telecom operator's prospects.
ICRA has upgraded the credit rating from BBB to A- as per communication to the company on June 1, 2026, as reported by The Economic Times. The rating upgrade is driven by a change in rating approach for Vodafone Idea, wherein the entity's rating factors in support from the Aditya Birla Group (ABG; promoter group) which has further strengthened with the re-appointment of Kumar Mangalam Birla as the Chairman of the board and with the proposed equity infusion of approximately ₹4,730 crore through a preferential allotment of warrants to a promoter group entity in May 2026. As per ICRA, these developments reflect strong confidence in Vi's potential and long-term growth trajectory, with the ABG expressing continued support to ensure timely debt servicing and continuity of operations.
ICRA highlighted the revision of Vodafone Idea's adjusted gross revenue (AGR) dues as a key positive factor, with the Department of Telecommunications (DoT) cutting Vodafone Idea's AGR dues by 27% to ₹64,046 crore as of December 31, as reported by The Economic Times. This revision significantly alleviates the company's liability burden and enhances cash flow visibility, providing a crucial push to the telco's capex plans. The ratings agency noted that these developments will provide substantial support to the company's financial position and operational flexibility going forward.
Vodafone Idea plans a ₹45,000-crore capex over three years (FY2027-FY2029) to expand the 4G coverage in priority circles, roll out 5G and augment the capacity, according to Business Standard. The programme will be funded by a proposed term debt of ₹25,000 crore, ₹10,000 crore non-fund based facility, internal accruals and other non-operating cash inflows including contingent liability adjustment mechanism (CLAM) proceeds. The execution of the capex, along with an expected industry tariff rationalisation over the next 12–24 months and improving network quality, are expected to support average revenue per user (ARPU) improvement and OPBDITA (operating profit before depreciation, interest, taxes, and amortization) growth, as noted by ICRA.
Kumar Mangalam Birla's return in Vodafone Idea as chairman and ensuing capital infusion led to Birla Group emerging as the dominant promoter shareholder, which increases analysts' confidence in Vodafone Idea's debt fund-raising by June 2026, according to analysts at Ambit Capital. The brokerage has a 'Buy' rating on Vodafone Idea with a target price of ₹17.6 per share. Sustained capex momentum should enable Vodafone Idea to upgrade its feature phone users (1/3rd of overall) to smart phones, enabling industry-tandem revenue growth, while Vodafone Idea's cash EBITDA margins will see best-in-industry 28% FY26-30 CAGR as its operating margins converge with that of peers.
