Vodafone Idea Gains 8% As SBI Loan Deal Reportedly Nears Closure
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Vodafone Idea shares jumped up to 8% on Tuesday, nearing its 52-week high, on reports the telecom operator is close to securing a Rs 35,000 crore loan and credit line from SBI, extending a rally that has taken the stock up over 30% year-to-date.
Vodafone Idea shares surged as much as 8% in intraday trade on Tuesday, August 25, taking the stock's weekly gains beyond 7%. The stock came within 1.6% of its 52-week high of Rs 15.34 during the session. Trading activity was also elevated, with more than 3 crore shares changing hands, around 1.4 times the stock's 10-day average volume.
The rally was triggered by media reports suggesting Vodafone Idea is close to finalising a loan from State Bank of India, the country's largest lender. According to a Business Standard report, as cited by CNBC-TV18, the telecom operator is looking to raise around Rs 35,000 crore, comprising a Rs 25,000 crore loan and a Rs 10,000 crore line of credit. A line of credit essentially provides the borrower access to funds as and when required.
Vodafone Idea Stock Performance
Tuesday's rally adds to a strong run for Vodafone Idea this year. The shares have gained more than 30% since the start of 2026 and nearly 104% over the past 12 months.
The stock had also jumped as much as 8% in May after Tata Consultancy Services announced a partnership with Vodafone Business, the enterprise arm of UK operator VodafoneThree, to drive AI-led digital transformation for enterprises in the UK.
Q1 Earnings Backdrop
The latest rally comes despite a weak standalone performance for the quarter ended June 2026. Revenue increased 5.8% year-on-year to Rs 11,539 crore from Rs 10,905.50 crore a year earlier.
There were some signs of improvement in the company's operating metrics. Average revenue per user rose to Rs 195 in the June quarter from Rs 177 in the previous quarter, representing a 10.2% year-on-year increase, mainly due to customers upgrading to higher-value plans.
Vodafone Idea's subscriber base also increased to 193.1 million as of June 30 from 192.8 million at the end of March. This marked the company's first quarter of net subscriber additions since its merger.
The company's 4G and 5G subscriber base rose to 130.1 million from 127.4 million a year earlier. Vodafone Idea has also expanded its 5G coverage to more than 200 cities.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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