Vodafone Idea share price has extended its decline to the third session in a row as profit taking continues to pile pressure. The stock was down by 0.14% and traded at ₹7.35 at the time of writing, bringing its returns in the last five trading sessions to -1.47%. However, it carries an underlying bullish momentum, having gained 7.9% in the last month. That said, investors are concerned about a substantial debt burden that will limit its upside.
The company remains operationally profitable with a strong EBITDA margin. However, it has struggled to shake off persistent net losses, amid rising debt and negative equity. Vodafone Idea (NSE: IDEA) recently converted ₹36,950 crore of government debt into equity, raising the stake to about 49%.
Furthermore, in mid-May, the Supreme Court of India rejected the company’s plea to waive interest, penalties and interest on penalties on Adjusted Grose Revenue (AGR) dues totaling about $5 billion. That will likely dent its next quarterly earnings and could raise the downward pressure in the near-term.
With the legal avenue having run its full course and there has been no government communication regarding potential intervention. As a result, the company is working on raising approximately $2.6 billion in fresh debt financing. This will increase the debt load, creating a negative sentiment that could continue weighing down on Vodafone Idea share price.
Vodafone Idea share price momentum calls for further downside below the pivot mark at ₹7.38. That will likely see the first support established at ₹7.32. Breaking below that level will signal a stronger momentum that could extend the downside and test ₹7.30.
On the other hand, breaking above ₹7.38 will invite the buyers to take control. That will likely see initial resistance encountered at ₹7.40. The upside narrative will be if the price breaks above that level. In addition, an extended control by the buyers could push the price higher and test ₹7.44.
This article was originally published on InvestingCube.com. Republishing without permission is prohibited.
This post was last modified on Jul 07, 2025, 08:59 BST 08:59