Vodafone Idea’s shares rose for the sixth consecutive session, gaining 4% on the BSE as the telecom company reported a significant decline in losses, improved revenue, and robust ARPU growth driven by stronger 4G and 5G services.
Vodafone Idea’s shares climbed 4% to ₹14.14 on the BSE on Friday, extending a run of gains to a sixth straight session even as the broader market was weaker. By late morning, the stock was trading 4% higher at ₹14.09 while the Sensex was down 0.43%, and combined trading volume on the NSE and BSE had reached 506.82 million shares, underscoring heavy investor interest. Business Standard said the stock had risen 12% over the six-day stretch and 9% in the three sessions after the company’s June-quarter earnings.
The move followed a quarterly update that showed the telecom operator’s losses narrowing sharply to ₹3,754 crore in the April-June quarter, from ₹6,608 crore a year earlier. The improvement was helped by a one-time gain of ₹1,611 crore linked to the reassessment of the fair value of Vodafone Plc shares due under the 2018 settlement. Revenue from operations rose 6% year on year to ₹11,689 crore, while earnings before interest, tax, depreciation and amortisation increased 9.1% to ₹5,034 crore.
A key driver of the better showing was higher average revenue per user, or ARPU, a closely watched measure of telecom spending. Vodafone Idea reported ARPU of ₹195, up 10.2% from a year earlier and the strongest growth among major Indian carriers, as more customers shifted towards 4G and 5G services. The company also added 0.3 million subscribers in the quarter, its first quarterly net gain since the merger, according to the brokerage note cited by Business Standard.
Management has been trying to reassure investors that the business can keep improving as the network expands. The company said it has not seen any weakening in postpaid additions despite Bharti Airtel’s premium 5G-backed offering, while analysts at ICICI Securities said Vodafone Idea still sees room for ARPU growth as 2G users migrate to faster networks and more customers move to unlimited plans. In separate commentary cited by Business Standard, Elara Capital said ongoing capital spending remained intact at ₹1,900 crore despite delays in fundraising, while Ambit Capital kept a bullish stance on the stock, arguing that debt financing should eventually be secured and that further tariff increases could support revenue growth.
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