Vodafone Idea Share Price Surges 6% to 52-Week High, Achieves Multibagger Status in 12 Months

Vodafone Idea Shares Surge 6% to Hit Fresh 52-Week High

On Tuesday, 19 May, shares of Vodafone Idea rallied 6% to hit a fresh 52-week high of ₹13.68 on the BSE, as brokerages turned cautiously optimistic on the telco following its March quarter results. The fresh optimism stems from the return of Kumar Mangalam Birla to the Vodafone Idea board as chairman and the ensuing capital infusion announced during the March quarter earnings on Saturday, 16 May.

Vodafone Idea Debt Fundraising in Focus

The capital infusion, which involves Aditya Birla Group infusing ₹4700 crore via warrants, has increased investor confidence in Vodafone Idea's debt fundraising. According to Citi, this should "catalyse closure of the long-pending bank funding, which is critical for Vodafone Idea's capex rollout." Securing bank debt remains critical for Vodafone Idea to scale up execution of its planned ₹45,000 crore 3-year capex programme, which will be focused on accelerating network investments, improving 4G coverage, and supporting 5G rollout.

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Over the next three years, Vodafone Idea has obligations of ~ ₹100,000 crore, including capex of ₹45,000 crore, debt servicing of ₹15,000 crore, and spectrum pay-outs of ₹35,000 crore. Management expects to fund this through cumulative cash generation of ₹60,000 crore, bank debt raise of ₹25,000 crore, LC facilities amounting to ₹10,000 crore, closing cash of ₹3,500 crore, and promoter capital infusion.

AGR Relief and Promoter Infusion Boost Sentiment

The biggest overhang that has dissipated for Vodafone Idea is the reassessment of AGR dues from ₹87,700 crore to ₹64,000 crore and the staggered repayment schedule, including an effective 6-year moratorium, providing a lifeline to the telecom firm. AGR relief and promoter infusion materially improve funding visibility, while stabilising subscriber trends indicate early signs of operational recovery, said Citi.

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Vodafone Idea Q4 Results Beat Estimates

Vodafone Idea's revenue was higher by 3% at ₹11,300 crore, and cash EBITDA increased by 5% YoY to ₹24,300 crore, beating Citi's estimates by 1% and 2%, respectively, driven by slightly better than expected ARPU at ₹174 and narrowing of subscriber losses to nearly nil during the quarter ended March 2026. Belaguered telecom operator Vodafone Idea also posted a surprise consolidated net profit of ₹51,970 crore, the first in about six years, mainly due to relief in statutory liabilities.

Analyst Views

Ambit Capital increased its FY27/FY28/FY29 cash EBITDA estimates by 9-24% and has a 'Buy' rating on the stock with a target price of ₹17.6, among the highest in the industry. Nuvama Research acknowledged that the KPIs like subscriber addition, ARPU, and churn rates are improving, but added that a lot more needs to fall into place for Vodafone Idea stock to become an investible idea.