Vodafone Idea Shares Dip Amid GST Dispute and Market Uncertainty

Vodafone Idea’s stock dipped 0.12% to ₹8.29 amid market fluctuations, with key support at ₹8.27 and resistance at ₹8.35. The company denied a ₹73 crore GST demand, triggering a brief 4% intraday rise before settling lower. Despite a reduced Q3 net loss and increased revenue, analysts maintain a “Hold” rating with a median target of ₹7.00.

CONTENTS:

• Vodafone Idea Q3 Financial Performance
• Vodafone Idea Challenges GST Penalty; Telecom Stock Defies Market Trend

Vodafone Idea Shares Dip Amid GST Dispute and Market Uncertainty

Vodafone Idea’s share price saw a slight dip today, declining by 0.12% to ₹8.29 from the previous close of ₹8.30. The stock has been fluctuating between ₹8.35 and ₹8.27 in the last hour, with traders monitoring key support at ₹8.27 and resistance at ₹8.35 for short-term movements.

On the previous trading day, Vodafone Idea opened at ₹8.05 and closed slightly higher at ₹8.07, reaching a high of ₹8.39 and a low of ₹7.94. The stock’s current performance remains below its 52-week high of ₹19.15 but above its 52-week low of ₹6.60.

Technical analysis indicates a bearish trend for both the short and long term, with key daily support at ₹8.03 and resistance at ₹8.48. If the stock falls below ₹8.03, it could trigger further downward movement, while a break above ₹8.48 could signal a potential uptrend.

Trading volume has also dropped significantly, with a 47.72% decline compared to yesterday, suggesting reduced market activity. Analysts currently maintain a “Hold” rating, with a median target price of ₹7.00, indicating a possible downside of 15.76% from current levels. The lowest target price is ₹2.00, while the highest estimate is ₹15.00.

Vodafone Idea’s stock saw an intraday rise of over 4% on February 19, 2025, following its denial of a ₹73 crore Goods and Services Tax (GST) demand. The Kolkata GST office imposed the highest penalty of ₹33.44 crore.

According to a regulatory filing, Vodafone India received an order under Section 74 of the Central Goods and Services Tax Act, 2017, with a penalty of ₹16.97 crore for alleged GST non-payment, including interest and additional charges. However, the telecom company has challenged the claims and stated that it will take necessary steps to reverse or rectify the order.

“The financial impact is limited to the tax demand, interest, and penalty imposed. The company disagrees with the order and will pursue appropriate actions for its rectification or reversal,” Vodafone Idea stated in its stock exchange filing.

As of 2:40 PM, Vodafone Idea shares were trading 1.98% higher at ₹8.23 on the NSE.

Vodafone Idea Q3 Financial Performance

For the third quarter of the 2024-25 financial year (Q3 FY25), Vodafone Idea reported a consolidated net loss of ₹6,609.3 crore, marking an improvement from the ₹6,985.9 crore loss recorded in the same period last year.

Revenue from operations stood at ₹11,117.3 crore, reflecting a 4.16% year-on-year (YoY) increase from ₹10,673.1 crore in Q3 FY24.

CEO Akshaya Moondra highlighted that the company is ramping up investments, accelerating capital expenditure, and gradually rolling out 5G services in key regions. He noted that the company recorded its highest quarterly cash EBITDA since the merger at ₹24.5 billion, growing approximately 15% YoY.

“With recent equity infusions of ₹19.1 billion from one of our promoters, we have secured around ₹260 billion in fresh equity over the past 10 months. Additionally, we are working with lenders for debt financing to support our planned network expansion of ₹500–550 billion over the next three years,” Moondra stated.

He also acknowledged the government’s decision to waive bank guarantees, emphasizing its continued support for the telecom sector, which remains a crucial part of India’s digital growth strategy.

Vodafone Idea Challenges GST Penalty; Telecom Stock Defies Market Trend

Vodafone Idea has pushed back against a ₹97.2 lakh Goods and Services Tax (GST) penalty, leading to a surge in its stock price during intraday trading. The telecom stock climbed as much as 4.0% to ₹8.39 per share on the BSE, maintaining strong positive momentum after an initial subdued opening.

Vodafone Idea Disputes GST Demand

The company disclosed on Wednesday that it had received an order from the Commercial Tax Officer in Chandigarh on February 18, alleging excess Input Tax Credit (ITC) claims for the financial year 2020-21. Vodafone Idea strongly refuted the claim, asserting that it does not agree with the order and will take necessary steps to rectify or reverse it.

“The financial impact is limited to the tax demand, interest, and penalty imposed. The company does not agree with the order and will take appropriate actions for its rectification or reversal,” Vodafone Idea stated in an official filing.

Market Reaction

Vodafone Idea shares initially started the session on a weak note but quickly rebounded following the announcement. The stock—traded under the symbol IDEA on both BSE and NSE—jumped up to ₹8.39 apiece before closing 2.7% higher at ₹8.29 per share.

Performance Over the Past Year

Over the past 12 months, Vodafone Idea’s stock has fluctuated between ₹6.6 and ₹19.2 per share. At its current price, the stock has declined by 48.3% in the past year, underperforming broader market indices like the Sensex (which gained 4.4%) and the S&P Telecom index (which rose 8.6%).

Analyst Outlook

Despite the recent uptick, most analysts remain cautious about Vodafone Idea’s stock, citing concerns over financial performance and regulatory challenges.