Vodafone Idea clarifies on relief buzz as shares tumble 10%

Shares of Vodafone Idea Ltd (VIL) came under heavy selling pressure on Tuesday, slipping 10 per cent to touch a low of Rs 6.59. The decline followed reports suggesting that the Minister of State (MoS) for Telecom had ruled out any further government relief for the company. Both BSE and NSE subsequently sought clarification from the telecom operator.

Responding to the exchanges, VIL stated: "This is with reference to the news article appeared in Mainstream Media on 26 August 2025, titled 'Vodafone Idea shares fall 10% after MoS Telecom rules out any further government relief' and the consequent material price movement in the scrip of the Company today i.e. on 26 August, 2025. We have not received any communication from the Government in relation to the above reported matter. As and when there is any development which requires disclosure, we will do the needful."

The government became the single-largest shareholder in Vodafone Idea earlier this year after converting spectrum auction dues worth Rs 36,950 crore into equity in March 2025. In 2023, it had also acquired close to a 33 per cent stake in the debt-laden telecom operator against statutory dues of over Rs 16,000 crore.

On the technical front, the stock is trading above its 10-day and 20-day simple moving averages (SMAs), while remaining below the 5-, 30-, 50-, 100-, 150- and 200-day SMAs.

Meanwhile, Vodafone Idea recently appointed Abhijit Kishore as its chief executive officer (CEO), succeeding Akshaya Moondra, whose term ended on August 18.

In its June 2025 quarter (Q1 FY26) results, the company reported a net loss of Rs 6,608 crore, compared with Rs 6,432 crore in the year-ago period. Sequentially, losses narrowed from Rs 7,166 crore in the March 2025 quarter (Q4 FY25). Revenue from operations rose 5 per cent year-on-year to Rs 11,022 crore from Rs 10,508 crore.

Average revenue per user (ARPU) improved to Rs 177, up 15 per cent from Rs 154 in Q1 FY25, aided by subscriber upgrades and a better mix. EBITDA increased to Rs 4,612 crore from Rs 4,204 crore a year earlier, while margins expanded to 41.8 per cent from 40 per cent.