Vodafone Idea Share Price Jumps 9% After Q1 Results – Should You Buy, Hold, or Sell?

The Vodafone Idea share price made a surprising move on Monday, August 18, when it jumped nearly 9% during intraday trading. For a stock that has been under constant selling pressure for months, this sudden rally caught the attention of investors, traders, and analysts alike.

What triggered this move? The company reported its Q1 FY26 results, showing narrower sequential losses, improved ARPU (Average Revenue Per User), and a relatively stable subscriber base compared to previous quarters. Add to that the positive sentiment in the broader Indian stock market, and the Vodafone Idea share price saw a much-needed breather.

But here’s the critical question: Should you consider buying Vodafone Idea now, or is this just another temporary spike in a troubled stock? Let’s dive deep into the numbers, expert views, and long-term prospects of the company to find out.

Vodafone Idea Share Price: The Intraday Rally

The Vodafone Idea share price opened at ₹6.28 on August 18, which was already 2% higher than the previous closing price. As the trading day unfolded, the stock climbed further and touched ₹6.68, marking an impressive intraday gain of 8.6%.

This rise gave a temporary sigh of relief to investors who have watched the Vodafone Idea share price tumble continuously. Despite Monday’s rally, the stock has lost over 21% so far in 2025 and is down a staggering 60% in the past one year. Clearly, long-term investors have seen their wealth erode drastically.

Q1 FY26 Results: Losses Narrow, But Still Heavy

The real driver behind the rally in the Vodafone Idea share price was the company’s financial performance for the quarter ending June 2025. The telecom operator reported a net loss of ₹6,608 crore in Q1. While this figure is higher compared to the ₹6,432 crore loss reported in the same period last year, it was an improvement compared to the March 2025 quarter when the company’s loss ballooned to ₹7,166 crore.

So yes, the company is still bleeding heavily, but the sequential improvement offered a ray of hope to the market.

Here’s a snapshot:

• Net loss Q1 FY26: ₹6,608 crore
• Net loss Q4 FY25: ₹7,166 crore
• Net loss Q1 FY25: ₹6,432 crore

The improvement quarter-on-quarter was enough to push the Vodafone Idea share price higher, even though year-on-year losses remain concerning.

Revenue Performance: Stable but Flat

In terms of revenue, Vodafone Idea reported ₹11,022 crore in Q1 FY26, which is a 5% increase year-on-year compared to ₹10,508 crore in the same quarter of FY25. However, sequentially, revenue was flat when compared to the March quarter.

That means the company is holding ground but not showing any major revenue growth. This stagnation in revenue is one of the big reasons why the Vodafone Idea share price continues to face long-term pressure.

ARPU Growth: A Silver Lining

One positive takeaway from the results was the Average Revenue Per User (ARPU), which came in at ₹177, beating analyst expectations of ₹167.

For telecom companies, ARPU is a crucial metric—it reflects how much revenue each subscriber generates. A higher ARPU often signals better monetization through subscriber upgrades, premium plans, or changes in the customer mix.

This improvement in ARPU gave investors a reason to cheer and provided support to the Vodafone Idea share price.

Subscriber Base: Decline Slows Down

Another important metric for any telecom operator is its subscriber base. Vodafone Idea reported 197.7 million subscribers in Q1 FY26, down by 0.5 million from the previous quarter. While this is still a decline, it is far smaller compared to the loss of 1.6 million subscribers in Q4 FY25.

Brokerages had anticipated a steeper decline, so the relatively smaller drop was seen as an improvement. This reduction in churn also supported the Vodafone Idea share price during the recent rally.

Brokerage Views on Vodafone Idea Share Price

Despite these small positives, most brokerages remain cautious. Domestic brokerage Motilal Oswal Financial Services (MOSL) said that Vodafone Idea’s loss was narrower than its own estimate of ₹7,500 crore. The better-than-expected performance was attributed to lower interest costs.

However, the brokerage retained its “Sell” rating on the stock with a target price of ₹6.20. That means analysts believe the Vodafone Idea share price could fall below current levels.

Technical Analysis: Weakness Persists

From a technical standpoint, the Vodafone Idea share price still looks weak. According to Anshul Jain, Head of Research at Lakshmishree Investments, the stock tested its crucial support at ₹6.30 but failed to show any strong bounce.

Key technical points include:

• Immediate downside targets: ₹5.70 and ₹4.55
• Sustained weakness below ₹6.30 could accelerate bearish momentum
• Only a sharp reversal with heavy trading volumes could alter the negative outlook

This means the recent rally could be short-lived unless strong buying support emerges.

Why Did Investors Cheer Anyway?

If the fundamentals and technicals are still weak, why did the Vodafone Idea share price rally? The answer lies in sentiment. Investors were desperate for some positive news after months of negative updates. Even a minor sequential improvement in losses and ARPU growth was enough to spark a temporary relief rally.

It’s like watching a struggling cricket team finally score a few boundaries after a long dry spell—it may not win them the match, but it excites the crowd momentarily.

The Bigger Picture: Vodafone Idea’s Survival Game

The biggest question isn’t just about the Vodafone Idea share price today—it’s about the company’s survival in the long run. Vodafone Idea has been struggling under massive debt, intense competition from Reliance Jio and Bharti Airtel, and continued subscriber losses.

The company’s future depends on three critical factors:

• Fundraising and Capital Infusion: Without fresh funds, it cannot invest in network expansion or 5G deployment.
• Tariff Hikes: The telecom industry will eventually need to raise tariffs to improve profitability. Vodafone Idea’s survival depends heavily on this.
• Government Relief: The company has already benefited from moratoriums and relief measures, but more support may be needed to prevent collapse.

Unless these issues are addressed, the Vodafone Idea share price may continue to face downward pressure.

Investor Strategy: Buy, Hold, or Sell?

So, what should you do with the Vodafone Idea share price at current levels? Here’s a breakdown:

• Buy: If you are a risk-tolerant investor who believes in turnaround stories, you might see this as an opportunity. But remember, it’s a high-risk, high-reward play.
• Hold: If you’re already invested, it may make sense to hold on and wait for more clarity on fundraising and tariff hikes.
• Sell: Conservative investors may want to use rallies like this as exit opportunities, since the fundamentals remain weak.

Simply put, the Vodafone Idea share price is not for the faint-hearted.

Sector Outlook: A Double-Edged Sword

The Indian telecom sector is currently dominated by two strong players—Reliance Jio and Bharti Airtel. Both have been investing heavily in 5G and expanding their subscriber base. Vodafone Idea, on the other hand, is still struggling with 4G expansion in many circles.

While the sector as a whole has potential due to rising data consumption and tariff hike possibilities, Vodafone Idea remains the weakest player. This is why the Vodafone Idea share price has failed to deliver consistent gains, unlike its competitors.

Read More: RBI Repo Rate 2025: Why the Central Bank Chose to Stay Put Amid Global Tensions

Conclusion

The recent 9% rally in the Vodafone Idea share price may look exciting, but it doesn’t change the bigger picture. The company continues to face steep losses, heavy debt, and competitive challenges. Yes, ARPU improved, and the subscriber decline slowed, but these are small wins in a long and difficult battle.

For now, the Vodafone Idea share price is more of a speculative bet than a safe investment. Only those who can stomach volatility and are willing to take long-term risks should consider it. Others may be better off staying cautious.