A ₹51,970-crore surprise profit by Vodafone Idea in the January-March quarter of fiscal 2025-26 (FY26) failed to prop up the company’s stock on Monday, 18 May, which lost almost 4% in intraday deals.
Vodafone Idea share price opened at ₹12.81 today as against the last closing price of ₹12.96 and dropped to an intraday low of ₹12.45 soon thereafter, shedding 3.93%. The company had posted its Q4 results on Saturday.
Along with the profit, the company also announced fundraising plans, involving equity infusion by promoter Aditya Birla Group.
Vodafone Idea Q4 results & fundraising plans
Beleaguered telecom operator Vodafone Idea posted a consolidated net profit of ₹51,970 crore, the first in about six years, mainly due to relief in statutory liabilities. Its net loss came in at ₹7,167 crore in the same period a year ago.
However, on the operational metrics, the company had a loss of around ₹5,515 crore during the reported quarter and ₹24,059 crore for the fiscal year 2026 before exceptional items comprising relief on adjusted gross revenue (AGR).
The company’s average revenue per user (ARPU), a key industry metric, rose to ₹190 from ₹175 a year earlier.
The company also said its promoter, Aditya Birla Group, would invest ₹4,730 crore ($500 million) through fully convertible warrants to equity shares at an exercise price of ₹11/warrant.
The development comes after a major relief to the telco by the Indian government as it capped Vodafone Idea’s AGR dues at $13.79 million annually for the next six years, easing near-term cash flow pressure for the firm.
Why is Vodafone stock falling?
Despite the company’s profit, the stock remained on a weak footing as analysts pointed out the underlying operating losses and possible equity dilution going ahead.
Khushi Mistry, Research Analyst at Bonanza, said that Vi’s Q4 “profit” of ₹51,970 crore is an accounting illusion; it came from a one-time AGR liability reassessment, not the business. Strip that out, and Vi posted an operational loss of ~ ₹5,515 crore in Q4 and ₹24,059 crore for FY26, she added.
Adding pressure is the board’s decision to raise ₹4,730 crore via convertible warrants, signalling fresh dilution. “Investors are looking past the headline and selling the reality.”
Brokerage JM Financial said that a key factor to watch from both Vodafone Idea and Indus Tower’s perspective would be if the equity infusion gives comfort to the lenders to approve the long-pending ₹25,000 crore debt fund-raise, needed to execute VIL’s network-upgradation capex of ₹45,000 crore to help grow its subscriber (subs) base.
The domestic brokerage has raised its FY27–FY28 revenue/EBITDA estimates by 1–3%, accounting for slightly higher ARPU and reduced net subs loss in Q4FY26. It has also revised Vodafone Idea’s stock price target to ₹14/share from ₹9/share, due to a reduction in debt by ~ ₹55000 crore post AGR relief. It has an ‘Add’ rating on the counter.
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