Kumar Mangalam Birla hiked Vodafone Idea stake, buying 1.86 crore shares on September 6

Goldman Sachs said that the company faces difficulties in achieving free cash flow break-even and recovering market share.

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26 Aug, 2025 12:21

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Kumar Mangalam Birla, promoter of beleaguered telecom operator Vodafone Idea, recently doubled down on his holdings, upping his stake in the debt-laden telco.

On September 6, Kumar Mangalam Birla bought an additional 1.86 crore shares in Vodafone Idea. Marquee investor Pilani Investment also purchased 30 lakh shares on the same date.

According to shareholding data, promoters have been paring their stake in Vodafone Idea, from 48.91 percent for the quarter ended March, 2024 to 37.2 percent by July 19, 2024. Domestic institutional investors have also gradually reduced their stake in the telecom operator.

However, during the same period, FIIs have been buyers in Vodafone Idea shares, with their total shareholding surging from two percent in March, 2024 to 12.8 percent by July. Retail investors have also been lapping up Vodafone Idea's stock, with their portion of shareholding surging more than 500 basis points to 19.9 percent from March to July.

On September 6, international brokerage Goldman Sachs, in its latest research report, expressed concerns over Vodafone Idea. The brokerage maintained its 'Sell' rating on the stock but slightly increased the target price to Rs 2.5o from Rs 2.20, suggesting an 83 percent downside in the share price from recent levels.

Goldman Sachs, in its report, said that the company faces difficulties in achieving free cash flow break-even and recovering market share. The outlook for Vodafone Idea seemed bleak, with the brokerage predicting that Vodafone Idea could lose another 300 basis points in market share over the next 3-4 years.

On the other hand, international brokerage UBS has a positive outlook on Vodafone idea. As telcos undertake a tariff hiking cycle, UBS expects around 60-75 percent of the total tariff hikes to flow through to revenue over three quarters. Additionally, the churn is expected to be lower in this cycle, as the incidence of double SIMs has come down substantially.