3 weeks ago
Vodafone Idea shares jump 6% on strong Q1 results
Vodafone Idea is a big mobile phone company in India.
On Wednesday, people who buy and sell its shares pushed the price up by 6%.
This happened even though the rest of the stock market was weak.
The company recently told everyone about the last three months of its business.
It still lost money, but the loss was much smaller than before.
Customers are paying more each month, so the company earns more per customer.
The company says this is the biggest increase in the industry.
Some experts who study stocks say the shares may keep going up.
Other experts are more careful and think the price is already high enough.
So whether it is a good time to buy depends on who you ask.
Vodafone Idea shares jumped 6% to an intraday high of ₹13.70 on Wednesday, 12 August, extending gains to a fourth consecutive session despite weak market sentiment.
The company reported a Q1FY27 net loss of ₹3,754 crore, sharply lower than the ₹6,608 crore loss in the same quarter last year.
ARPU rose 10.2% year-on-year to ₹195, which the company called the highest ARPU growth in the industry.
Consolidated revenue from operations grew 2.4% to ₹11,689 crore, with EBITDA margin improving to 43.1% from 41.8%.
Brokerages were split: Motilal Oswal kept a 'neutral' rating with a ₹11 target, while JM Financial maintained an 'add' view with a revised target of ₹14.7.
- Who
- Vodafone Idea, the Indian telecom operator, along with brokerage firms Motilal Oswal Financial Services, JM Financial and technical analyst Jigar S. Patel of Anand Rathi Share and Stock Brokers.
- What
- Vodafone Idea's share price jumped 6% after it reported Q1FY27 results showing a narrowed net loss and strong ARPU growth.
- Where
- On the BSE (Bombay Stock Exchange) in India.
- When
- Wednesday, 12 August, during morning trade; quarterly results were reported on August 10.
- Why
- Positive sentiment was boosted by healthy quarterly results, including a 10.2% YoY rise in ARPU to ₹195, a lower net loss and improving EBITDA margins.
Optimists: Buy the stock
Skeptics: Stay cautious
Is it the right time to buy?
Optimists: Buy the stock
Technical charts show a positive setup, with the stock trading above key moving averages and the Ichimoku cloud and a breakout above ₹14 opening further upside; JM Financial maintains an 'add' view with a ₹14.7 target price.
Skeptics: Stay cautious
Motilal Oswal maintains a 'neutral' rating with a target price of ₹11, below the current market price, and says Vodafone Idea's revival hinges on sustained tariff hikes, subscriber stabilisation, rational competition and continued regulatory relief.
Earnings outlook
Optimists: Buy the stock
Q1FY27 showed a sharply narrower net loss of ₹3,754 crore, revenue growth of 2.4%, and industry-leading ARPU growth of 10.2% YoY to ₹195, signalling a healthier trend.
Skeptics: Stay cautious
JM Financial cut FY27–FY29 revenue, EBITDA and PAT estimates by 1–4%, factoring in some delay in tariff hikes, suggesting the recovery may be slower than hoped.
Key facts
- Intraday high
- ₹13.70 (up 6%)
- Q1FY27 net loss
- ₹3,754 crore (vs ₹6,608 crore a year ago)
- Q1FY27 revenue
- ₹11,689 crore (up 2.4% YoY)
- ARPU
- ₹195 (up 10.2% YoY)
- EBITDA margin
- 43.1% (up from 41.8%)
- Motilal Oswal rating
- Neutral, target price ₹11
- JM Financial rating
- Add, target price ₹14.7
- One-year stock return
- 108%
Quotes
Jigar S. Patel
Senior Manager, Equity Technical Research at Anand Rathi Share and Stock Brokers
“"We believe Vodafone Idea’s revival hinges on: (1) sustained tariff hikes or change in tariff construct, (2) stabilisation of consumer wireless subs trends, (3) more rational competition on subscriber acquisition, and (4) continuation of benign regulatory regime, with requirement of further relief on spectrum dues."”
livemint.com
“"Immediate support is placed near ₹12.85– ₹12.40, while ₹13.70– ₹14.00 is the key resistance zone. A decisive breakout above ₹14 could open further upside potential."”
livemint.com










