Vodafone Idea share price: Revival hopes for the beleaguered telecom company, Vodafone Idea, following a Supreme Court order, pushed the stock higher by up to 10% in afternoon trade on Monday.
Vodafone Idea stock rose past ₹10.5 per share to its highest levels since September 2024 after the apex court allowed the Indian government to reassess the demand based on Vodafone Idea’s so-called adjusted gross revenue (AGR).
The matter relates to Vodafone Idea’s petition filed last month challenging the Department of Telecommunications’ (DoT) demand for an additional ₹9,450 crore in adjusted gross revenue (AGR) dues.
The Supreme Court judges noted that the decision on any relief to the telecom operator is a policy matter. The government became a major shareholder in Vodafone Idea earlier this year, with a 49% stake through a debt-to-equity swap.
What does SC decision mean for Vodafone Idea?
Harshal Dasani, Business Head, INVAsset PMS, said that the Supreme Court’s go-ahead for the government to restructure AGR dues marks a key turning point for Vodafone Idea, sparking a sharp rally in the stock.
“It signals stronger policy intent and lowers the bankruptcy risk that once loomed large over the telecom major. However, the fine print — including how much of the dues will be deferred, waived, or converted into equity — remains unknown,” he added.
Is Vodafone Idea a stock to buy now?
While analysts believe the SC decision lowers risk for the debt-ridden company, they are not entirely keen on the stock yet.
With AGR dues still exceeding ₹76,000 crore and heavy debt on its books, the rally could moderate once the initial euphoria fades, Dasani said.
Kranthi Bathini of Wealthmills Securities, too, opined that while the SC order is a booster for Vodafone Idea shareholders, the stock is not out of the woods as it continues to lose subscriber base consistently, and there is no growth in its average revenue per user (ARPU).
According to the latest TRAI data, Vodafone Idea lost 3.09 lakh mobile users in August, which continues to strain its operations further.
Until and unless the company’s business returns on track, Vodafone Idea stock remains ideal for only those traders and investors who have a high risk appetite, Bathini said.
The ruling is an important confidence booster, but investors must remember that a full turnaround still depends on operational metrics like subscriber retention, ARPU growth, and capital infusion from strategic investors, said Dasani, echoing similar views.
Vodafone Idea: Trading strategy
As Vodafone Idea remains a high-beta, event-driven stock — not yet an investment-grade turnaround story — Dasani advised traders to consider short-term positions on dips, using tight stop-losses, while long-term investors should await concrete visibility on debt restructuring and fresh capital inflows.
For now, conservative portfolios may be better served by observing from the sidelines until the company’s balance sheet visibly stabilises, he added.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
