Vodafone Idea shares rise after second upgrade in rating and outlook within a week

Shares of Vodafone Idea Ltd. gained after ICRA upgraded its credit rating and outlook on the stock to A-/Stable on Tuesday, June 2, 2026.

Vodafone Idea informed the exchanges that the ratings agency has upgraded its credit rating and revised its outlook to 'stable' from its previous rating and outlook of BBB/(Positive).

This comes just a week after Crisil Ratings upgraded its credit rating to A- with a stable outlook on the stock.

On another note, brokerage firm Citi Research has removed "high risk" from its rating and it is now just "buy". It has also increased its price target to ₹17 per share from the previous ₹14 apiece. This is an upside of 21.86% from its previous closing price.

Citi said it has updated its model to incorporate the company's FY26 actuals and the government's reassessment of the adjusted gross revenue (AGR) dues.

It said the Aditya Birla Group's ₹4,700 crore equity infusion via warrants (3.8% of equity) underscores promoter confidence. Citi is of the view that this should facilitate closure of the long-pending back funding.



It said ratings agency Crisil hasa also assigned an A-/Stable rating to Vodafone Idea's proposed banking facilities.

Taken together, these developments materially alleviate leverage and cash flow concerns for Vodafone Idea, Citi said. Accordingly, it has removed its "high risk" rating on the stock.

It has also raised its target enterprise value (EV)/EBITDA multiple to 13x from 12x given operational improvement and as going concern risks have receded, resulting in an upward revision of its target price.

Citi said these key downside risks could prevent the shares from reaching its target price:

• Delay in completing the bank fund raise


• Competitive intensity worsening, leading to disappointing tariff hikes in the future


• No reduction in subscriber churn


• Lower-than-expected pace of 4G/5G subscriber additions.

Of the 21 analysts who have coverage on the stock, three have a "buy" rating, eight have a "hold" rating and 10 have a "sell" rating.

Shares of Vodafone Idea Ltd. gained 1.1% to hit an intraday high of ₹14.11 apiece on Tuesday after the fresh ICRA rating. It was up 0.65% at ₹14.04 apiece at 1.40 pm. It has gained 33.65% in the past month. It is just 2.3% away from its 52-week high of ₹14.44 apiece.

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