Vodafone Idea Share Price Surges to Fresh 52-Week High on Continued Subscriber Growth

Vodafone Idea Share Price Hits Fresh 52-Week High

Vodafone Idea's share price rose nearly 1% in early trade on Wednesday, hitting a fresh 52-week high and extending gains for the seventh consecutive trading session. The telecom stock climbed as much as 0.98% to ₹14.29 apiece on the BSE. This rally marks the sixth straight trading session in which the company's shares have touched a 52-week high.

According to the latest telecom subscriber data released by the Telecom Regulatory Authority of India (TRAI), Vodafone Idea added 53,257 users during April, compared to 1.03 lakh additions in March and 21,927 additions in February. This growth in subscriber base is a positive indicator for the company.

Comparison of Net Subscriber Addition Across Telecom Operators

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Bharti Airtel stayed on top in terms of subscriber growth across segments, adding 34.82 lakh net new customers in April, comprising 31.39 lakh in the wireless or mobile segment and 3.43 lakh in the wireline segment. Reliance Jio's net subscriber addition stood at 30.84 lakh, which includes 29.42 lakh new mobile connections and 1.42 lakh wireline connections.

Vodafone Idea share price also received a boost after a credit rating upgrade by CRISIL Ratings. The rating agency upgraded Vodafone Idea's credit rating to A- with a stable outlook, citing continued support from the Aditya Birla Group, the telecom operator's strategic market position, and improving business operations.

CRISIL highlighted Vodafone Idea's strategic importance to the Aditya Birla Group and factored in the financial, operational, and managerial support expected from the conglomerate. It noted that the group considers Vodafone Idea a strategically significant entity, while the recent appointment of Kumar Mangalam Birla as chairman of Vodafone Idea underscores the group's strong management oversight.

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The ratings upgrade also reflects Vodafone Idea's meaningful position in India's mobile services market. According to CRISIL, Vodafone Idea's planned capital expenditure of ₹45,000 crore between FY27 and FY29 is expected to support revenue growth, improve earnings before interest, taxes, depreciation, amortisation and rentals (EBITDAR), and strengthen cash flow generation. The capex will be prioritised across 17 telecom circles to expand 4G coverage and roll out additional 5G sites.

CRISIL also took note of the recent resolution of adjusted gross revenue (AGR) dues by the Department of Telecommunications (DoT). Vodafone Idea's AGR liabilities have reduced to ₹64,046 crore from ₹87,695 crore, with minimal repayments until FY2035, which is expected to ease cash flow pressures in the near to medium term.

The rating agency further said a potential operational turnaround at Vodafone Idea could improve the company's long-term cash flows. It also highlighted the Aditya Birla Group's recent commitment to subscribe to share warrants worth ₹4,730 crore as a sign of continued support for the telecom operator.

Vodafone Idea Share Price Performance

Vodafone Idea share price rallied 46% in one month and has gained 33% in three months. The telecom stock has surged 40% in six months and has delivered multibagger returns of 103% over the past one year. At 9:25 AM, Vodafone Idea share price was trading 0.07% higher at ₹14.16 apiece on the BSE.