Vodafone Idea shares fell over 4% after JPMorgan downgraded the stock to 'Underweight' and set a ₹9 target price.
While recent AGR relief and promoter Kumar Mangalam Birla's share purchases boosted sentiment, the company still faces funding and operational challenges.
JPMorgan warned that Vi's growth and earnings targets look ambitious, with stable subscriber additions and bank funding seen as key hurdles ahead.
Shares of Vodafone Idea (Vi) slipped sharply on Thursday, with the stock declining over 4% in early trade, after global brokerage JPMorgan downgraded its rating on the telecom firm and signalled further downside. The stock fell as much as 4.47% to ₹11.32 per share on the BSE.
According to a CNBCTV-18 report, JPMorgan lowered its rating on Vodafone Idea to "Underweight" with a target price of ₹9 per share, implying roughly a 20% downside from the previous session's close.
3 February 2026
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The brokerage noted that the company still needs substantial bank funding to support its next phase of capital expenditure, a prerequisite to stemming subscriber losses and returning to net customer additions. It also said that that without clearer funding visibility, the stock's recent strength may be overdone.
The company started its first round of capital spending in the first quarter of FY25 after raising ₹18,000 crore through a follow-on public offer (FPO). While this helped slow down subscriber losses, it was not enough to add more customers than it was losing.
JPMorgan also said Vodafone Idea’s plan to triple its cash earnings (EBITDA) over the next three years looks too ambitious, as it assumes the company will gain market share from rivals Bharti Airtel and Reliance Jio — something the brokerage believes may be difficult.
The brokerage added that Vodafone Idea still faces several challenges before its business becomes stable, including getting bank funding and consistently adding new subscribers.
Meanwhile, Vi shares had risen for a second straight session on Tuesday, February 10, supported by continued buying from promoter Kumar Mangalam Birla.
Between January 30 and February 3, 2026, Birla bought significant amounts of Vi stock from the open market. On January 30, he acquired 2.21 crore shares at an average price near ₹10.95.
This was followed by 1.88 crore shares on February 1 at about ₹11.13 each. He didn't stop there. On February 2 he added another 45 lakh shares, and on February 3 he bought roughly 1.42 crore shares, taking his total purchases over these days to around 5.96 crore shares.
Vi's share price had been volatile recently by news around its Adjusted Gross Revenue (AGR) liabilities, a regulatory burden that has overshadowed its business story. In August 2025, the stock plunged around 10% in a single session as the government clarified it would not provide additional AGR relief beyond existing concessions.
However, the Union Cabinet in December, moved to freeze the telco's AGR dues at ₹87,695 crore, providing the telecom operator with a five-year moratorium and a long repayment schedule stretching into the 2030s. This was seen as short-term relief for one of the biggest concerns for the telco, and the stock briefly rose to a 52-week high after the government's move.
