Vodafone Idea shares gain 7% today: What's driving gains

Shares of Vodafone Idea in Tuesday's session (June 24, 2025) gained sharply by as much as 7 per cent to the day's high price of Rs 7.01 per share on the BSE. On the NSE, the stock gained to touch day's high level of Rs 7.03.

The sharp gains in the stock were triggered amid reports that the Centre is considering offering substantial relief on regulatory dues to the telecom company.

The Centre, the biggest equity owner in the telecom company Vodafone Idea (Vi), is in the process of evaluating a slew of options for extending further relief to the company on its outstanding dues worth as much as Rs 84,000 crore amid worries that the telco may go bankrupt, said a media report.

As of the last count at around 1:35 pm, shares of the company traded near the day's high price at Rs 6.99, up 6.72 per cent or Rs 0.44 per share.

The positive sentiment in the scrip was also triggered as Telecom Minister Jyotiraditya Scindia pointed out that the telecom industry in India cannot afford a duopoly, adding that the Centre encourages competition in all industries.

"It’s not good enough having a duopoly or one carrier or two carriers. India must have competition in every sector. India today is probably the only country in the world for competition in ISP domain," Scindia said at an event in Delhi.

Brokerages on Vodafone Idea

Recently, Geojit assigned a 'neutral' rating to the stock, citing the significant challenges the company faces, including a substantial debt, dependence on government support, and uncertain AGR relief.

The company's survival and growth are contingent upon government support, and its capital expenditure plans are uncertain due to funding constraints. Although the government has the ability to offer AGR relief without facing constraints from the Supreme Court, the company's AGR dues of around Rs. 76,000 crore remain a significant challenge, it added.

The consensus recommendation from 22 analysts for Vodafone Idea is 'Sell', showed Trendlyne data.

Vodafone Idea share price performance

In the last one year, shares of the beleaguered telecom company have tumbled by nearly 60 per cent, while on a year-to-date basis the scrip is down nearly 13 per cent.

The Centre, already the biggest equity owner in Vodafone Idea (Vi) through conversion of earlier receivables into stock, is weighing multiple options to provide the telco further relief on outstanding regulatory dues of Rs 84,000 crore over concerns that the telecom operator would flounder without executive latitude.

The central government, which is the biggest equity owner of Vodafone Idea, is considering multiple options to provide relief on the outstanding regulatory dues of Rs 84,000 crore amid concerns that the telecom operator will go bankrupt, the Economic Times reported citing people familiar with the matter.

This comes after Vodafone Idea had reportedly cautioned the government that it won't be able to operate beyond FY26 without its support, and may have to go for insolvency.