The stock of Vodafone Idea declined almost 4 percent on the bourses on Monday even after reporting an unprecedented gain in the fourth quarter of the previous financial year.
The stock opened 1.1 percent lower on Monday at Rs 12.81 compared to the previous close of Rs 12.96 apiece. The stock further fell to Rs 12.45 during trading hours. This was a decline of 3.9 percent from the previous closing level.
The decline in the stock came even as the country’s third-largest telecom operator reported a profit of Rs 51,986 crore in the March quarter. This was the first time the company posted a quarterly profit in nearly six years.
However, the profit was on the back of an exceptional gain of Rs 57,491 crore from an Adjusted Gross Revenue (AGR) reassessment.
If the exceptional gain is not accounted for, the company would have reported a loss of over Rs 5,500 crore.
It had reported a loss of Rs 7,167 crore during the same period last year.
Unlike the turnaround in profit, the company’s revenue grew by just 2 percent.
Hence, there are concerns among investors about the company’s future prospects.
The government had revised the company’s AGR dues from Rs 87,695 crore earlier to Rs 64,046 crore after the committee formed for reassessment finalised the dues.
“Consequently, in accordance with Ind AS 109, the financial liability of Rs 80,502 crore as at December 31, 2025, was derecognised and the revised financial liability of Rs 24,880 crore was recognised, which is the present value of future payments as stated above. The resulting difference of Rs 55,622 crore (including impact of reassessed amount) along with net impact of other related provisions has been credited to the statement of Profit and Loss,” the company said while announcing the results.
