SYNOPSIS: Mutual funds increased their stake in Vodafone Idea despite volatility and losses, signalling cautious optimism, while FIIs trimmed exposure. Improving losses and stable revenues indicate a gradual financial recovery amid ongoing challenges.
Vodafone Idea has rarely been out of the headlines – and not always for the right reasons. From memorable Vodafone ZooZoo ads, or its high-profile merger with Idea, to ongoing debt challenges, the company keeps resurfacing in the news.
The stock has remained highly volatile for a very long time now, something most active investors would be familiar with. Interestingly, despite this volatility, mutual funds have been steadily increasing their exposure to the stock. So, what’s driving this trend? Let’s take a closer look at how mutual funds and other investors are positioned in the company.
Incorporated in March 1995, Vodafone Idea Limited is a major telecommunications provider in India offering a wide range of services such as voice, data, enterprise solutions, and other value-added services (VAS), including short messaging services, digital services, and IoT solutions.
The company is a partnership between Aditya Birla Group and Vodafone Group, and is one of the leading telecom service providers in India, with a large spectrum portfolio including mid-band 5G spectrum in 17 circles and mmWave spectrum in 16 circles.
With a market cap of Rs. 1.03 lakh crores, shares of Vodafone Idea Limited surged around 3 percent to hit an intraday high at Rs. 9.73 on Tuesday, compared to its previous closing price of Rs. 9.48 on BSE. The stock has delivered positive returns of around 46 percent in one year, and has gained by about 10 percent in the last one month.
Shareholding Pattern
As per the latest March 2026 shareholding pattern, mutual fund (MF) holdings increased to 5.93 percent, up from 5.34 percent in December 2025 and 4.55 percent in the previous quarter. In contrast, foreign institutional investors (FIIs) marginally reduced their stake to 5.56 percent from over 5.99 percent in the preceding quarters, where their holdings had remained relatively stable.
Among MF holdings, Kotak Mahindra Trustee Co. Limited, through its Kotak Nifty Midcap 150 Momentum 50 Index Fund, reported a 1.05 percent stake in Vodafone Idea. At the end of the December quarter, this name was not featured among public shareholders, which means that either the fund had a stake of less than 1 percent or acquired a fresh position during the quarter.
Promoter shareholding witnessed a slight uptick, increasing from 25.57 percent to 25.64 percent, reflecting marginal promoter participation. Domestic institutional investors (DIIs) also raised their stake to 6.19 percent from 5.59 percent in the previous quarter. Meanwhile, retail shareholding declined modestly by 0.26 percentage points, from 13.83 percent to 13.57 percent over the same period.
Financial Performance
For Q3 FY26, the company posted a consolidated revenue from operations of Rs. 11,323 crores, reflecting a sequential growth of just around 1 percent QoQ compared to Rs. 11,195 crores in Q2 FY26. Meanwhile, on a year-on-year basis, revenue grew nearly 2 percent from Rs. 11,117 crores recorded in Q3 FY25.
At the profitability level, the company reported a net loss of Rs. 5,286 crore for the quarter, reflecting an improvement of around 4 percent QoQ from Rs. 5,524 crores in Q2 FY26. On a YoY basis, losses narrowed by nearly 20 percent from Rs. 6,609 crores reported in Q3 FY25.
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