Vodafone Idea rebounds sharply, breaks above its Rs 11 FPO price; should you buy, sell or hold the stock

Vodafone Idea Shares: Telecom operator Vodafone Idea shares saw renewed investor interest on Friday, with the stock rising 5 per cent and edging above its Follow-on Public Offer (FPO) level of Rs 11. The upmove marks the fourth straight session of gains and suggests that sentiment toward the telecom operator is gradually turning positive after months of pressure.

Company’s Adjusted Gross Revenue (AGR) dues has helped ease long-standing concerns. The court indicated that any relief would apply to the overall AGR liability and not merely additional demands.
Market participants say this removes a key overhang, providing Vodafone Idea more room to plan its financial commitments.

The stock has climbed close to 15 per cent over the past four sessions, recovering from the August low of Rs 6.12. The company had raised Rs 18,000 crore through its landmark FPO in April 2024, which briefly lifted the share price to Rs 19.18 before broader market weakness dragged it lower.

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Supreme Court’s AGR order brings relief

A recent clarification from the Supreme Court on the c
Q2 Print Shows Signs of Steadying

The September quarter results offered further comfort. Vodafone Idea reported its lowest net loss in 19 quarters, while Average Revenue Per User (ARPU) inched up to Rs 167 from Rs 165 in the June quarter.

Technical strong stock

The technically the stock seems strong as the shares are trading above key moving averages, signaling sustained strength. Its Relative Strength Index is nearing 70, indicating firm momentum, though some chartists caution that a brief consolidation may follow. On Friday, Vodafone Idea settled at Rs 10.9, up 4.2 per cent, and is now up 38 per cent for the year.

Brokerages turn positive as relief prospects improve

The rally has prompted several brokerages to turn more optimistic on the stock. Global brokerage Citi has set a target price of Rs 14 per share, implying a potential upside of nearly 36 per cent from the market price of Rs 10.30. Citi reaffirmed its “BUY” rating following the Supreme Court’s order, noting that the ruling allows for a full reassessment of the company’s AGR dues — a development that could pave the way for government-backed financial relief.

JM Financial also reiterated its positive stance, maintaining an “ADD” rating and revising its target price to Rs 11 from Rs 9.5. The brokerage has factored in an estimated government relief of Rs 16,000 crore. “We have raised our TP to INR 11 (from INR 9.5) assuming ~INR 160bn relief from the government in relation to VIL’s AGR dues,” it said in a note.

The firm added that Vodafone Idea’s Q2FY26 performance was broadly on expected lines, with a net subscriber loss of 1 million, a slight improvement in ARPU, and continued delays in the 5G rollout due to pending fund infusion.