Vodafone Idea Makes a Strong Comeback
Vodafone Idea (Vi) has once again captured investors’ attention after its market capitalization surged past the ₹1 trillion mark, marking a significant turnaround for the debt-laden telecom giant. The stock has climbed steadily in recent weeks, nearing its 52-week high, supported by renewed investor confidence, government backing, and improving operational performance.
As the Indian telecom sector gears up for 5G expansion and tariff revisions, Vodafone Idea’s rally has sparked a crucial question among investors — is this the right time to buy or should one hold the stock?
The Journey Back to ₹1 Trillion Market Cap
The recovery of Vodafone Idea’s market value to over ₹1 lakh crore is a remarkable milestone. Just a year ago, the company was battling liquidity issues and uncertainty over fresh fund infusion. However, multiple positive triggers have fueled optimism:
- Equity infusion and promoter support: Vodafone Idea successfully raised funds through a ₹18,000 crore FPO (Follow-on Public Offering) earlier in 2025, helping it pare down short-term debt and strengthen its balance sheet.
- Improving subscriber metrics: After several quarters of subscriber loss, Vi has shown early signs of stabilization in its user base, especially in high-value urban circles.
- Tariff hike expectations: Industry insiders expect another round of tariff hikes in 2025–26, which could significantly improve Vi’s ARPU (Average Revenue Per User), a critical profitability metric.
- Government support: The Indian government’s decision to convert part of Vi’s dues into equity and offer relief under the telecom reform package gave the company breathing space and boosted investor sentiment.
Stock Performance and Technical Outlook
As of the latest trading session, Vodafone Idea shares are trading close to ₹17–₹18, just shy of their 52-week high of around ₹19. Analysts note strong momentum, with the stock delivering over 80–90% returns in the last six months alone.
From a technical standpoint:
- Support levels: ₹15 remains a strong support zone.
- Resistance levels: ₹19–₹20 is the key resistance range, beyond which the stock could see a fresh breakout.
- Moving averages: The stock is trading well above its 50-day and 200-day moving averages, suggesting a bullish trend in the near term.
However, given the steep rally, short-term investors should be cautious of possible profit booking near resistance levels.
Fundamentals Still Need Strengthening
While market optimism is evident, Vodafone Idea’s financial health remains a concern. The company continues to carry substantial debt — estimated at over ₹2 lakh crore, including spectrum liabilities.
Quarterly earnings have shown gradual improvement, but profitability remains elusive. The firm’s ARPU, though improving, still trails behind its rivals Reliance Jio and Bharti Airtel. Sustained earnings growth will depend on its ability to:
- Increase tariffs without losing subscribers.
- Expand 4G coverage and successfully roll out 5G services.
- Attract new capital to fund network upgrades and reduce debt.
In short, while the stock’s performance reflects optimism, the fundamentals require continued improvement before it becomes a long-term outperformer.
What Experts Say
Market analysts have mixed views on Vodafone Idea’s next move:
- Optimists believe that Vi’s turnaround story is gaining traction and the stock could see further upside if tariff hikes and fundraising plans continue smoothly.
- Cautious voices point out that the debt load and delayed 5G rollout remain major overhangs. Without consistent revenue growth, sustaining current valuations could be challenging.
Brokerage houses generally recommend a “Hold” rating, suggesting that existing investors may stay invested while monitoring the company’s quarterly progress.
Buy, Hold, or Wait?
If you’re already holding Vodafone Idea, the advice is largely to hold and watch. The company has regained market trust and is on a recovery path, but challenges remain in execution and profitability.
For new investors, it might be wise to wait for a price correction or clear visibility on the next tariff hike cycle before entering. The telecom sector’s long-term outlook remains positive, and Vodafone Idea’s turnaround could gather pace if it sustains operational gains.
Conclusion
Vodafone Idea’s comeback to a ₹1 trillion market cap is a remarkable story of resilience and strategic restructuring. With improving investor confidence, government support, and sectoral tailwinds, the company has laid the foundation for recovery.
However, for long-term wealth creation, the next few quarters will be crucial. Investors should track Vi’s revenue growth, ARPU expansion, and debt reduction efforts closely before making fresh commitments.