Vodafone Idea, a struggling telecom operator in India, announced a surprising consolidated net profit of ₹51,970 crore for the January-March quarter of fiscal 2025-26 (FY26), marking its first profit in nearly six years. However, this did not prevent its share price from declining by nearly 4% on May 18, 2025, as investors reacted negatively to the underlying operational losses. The company reported an operational loss of approximately ₹5,515 crore for the quarter and ₹24,059 crore for the entire fiscal year, raising concerns among analysts. The profit was largely attributed to a one-time reassessment of statutory liabilities rather than sustainable business performance. Additionally, Vodafone Idea announced plans for a ₹4,730 crore equity infusion from its promoter, the Aditya Birla Group, through convertible warrants, which has further fueled fears of equity dilution among investors. Despite these challenges, brokerage JM Financial has raised its stock price target to ₹14/share due to reduced debt following government relief on adjusted gross revenue (AGR) dues. The company’s average revenue per user (ARPU) also saw an increase, rising to ₹190 from ₹175 a year earlier.