Shares of Vodafone Idea Ltd (VIL) recorded a sharp uptick on Wednesday, rising 4.93 per cent to settle at Rs 7.45. The counter was in the limelight following a couple of updates. First, there were reports that the telecom operator is involved in talks with Elon Musk-led Starlink and a few other satellite communication (satcom) providers. Bourses BSE and NSE sought clarification from VIL over the same. The telco, in response, said, "We wish to inform you that the company in ordinary course of business keeps on exploring various initiatives and tie-ups with various parties to enhance the quality of service as also for expansion of the telecom services. The company is in exploratory talks with various Satcom providers including Starlink."
As and when if any such proposal warrants disclosure, the company mentioned that it would comply with the disclosure obligations under the Sebi listing regulations.
And second, VIL has launched its 5G services in Mumbai. "The price movement in the scrip of the company can be correlated to the launch of 5G services," it also said.
On the earnings front, the operator's consolidated net loss reduced to Rs 6,609.3 crore in the December 2024 quarter (Q3 FY25) from Rs 6,986.7 crore in the year-ago period. The telecom operator's revenue from operations climbed 4.16 per cent to Rs 11,117.3 crore in Q3 FY25 as against Rs 10,673.1 crore in the corresponding period last fiscal.
Voda Idea mentioned that the 4G subscriber base stood at 12.6 crore at the end of Q3 FY25, increasing from 12.56 crore as of Q3 FY24. "Customer ARPU (ex M2M) improved to Rs 173 vs Rs 166 in Q2 FY25, up 4.7 per cent on QoQ basis, driven by tariff hike and customer upgrades," it added. ARPU stands for average revenue per user.
VIL was formed in 2018 when Vodafone Group Plc merged its India business with Idea Cellular. Promoters held a 38.80 per cent stake in the operator as of January 9, 2025, a 1.48 per cent uptick from 37.32 per cent on December 31, 2024.
On BSE, VIL's stock recorded high trading volume as well. Around 12.84 crore shares changed hands today. The figure was way more than the two-week average volume of 5.21 crore shares. Turnover on the counter came at Rs 95.82 crore, commanding a market capitalisation (m-cap) of Rs 53,187.81 crore.