Vodafone Idea stock plunges over 26% on weak June quarter result

Since launch of minimum service recharge plans firm loses 67 mn subscribers

Reacting to the weak June quarter (Q1) results announced by Vodafone Idea on Friday, the shares of the telco fell by 26.8 per cent on the BSE on Monday. The Street reacted to the 4 per cent sequential fall in revenues, a result of the firm’s strategy to weed out low-revenue customers by implementing minimum recharge plans.

The move to weed out low-revenue users cost the telco 14 million subscribers in Q1 and analysts predict further erosion, as they feel the strategy may have backfired. The minimum recharge plans kicked in around November last year. Since the December quarter of