Vodafone Idea expects long-term AGR resolution after Supreme Court ruling

Vodafone Idea CEO Abhijit Kishore said the telco is in talks with the DoT for next steps after the Supreme Court allowed reassessment of AGR dues up to FY17, paving the way for clarity on liabilities

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Vodafone Idea (Vi) is hopeful of a ‘’long-term solution’’ from the government, the telco told analysts in an earnings call on Tuesday. This follows the recent Supreme Court decision to allow the Centre to reassess Vi’s dues linked to adjusted gross revenue (AGR) up to FY17. 

 

Welcoming  the court order, Vi CEO Abhijit Kishore said the company was hopeful that the government, being a 49 per cent shareholder, would look at a long-term solution. ‘’We are engaged with the Department of Telecommunications (DoT),” Kishore said a day after the financially stressed telecom operator announced its results for the quarter ended September. 

 

“I cannot really give a timeline at this point in time on when this will get solved, but the government has been extremely helpful, and we are very hopeful that it will be resolved as soon as possible,” the newly appointed chief executive said. Kishore was responding to questions on the likely resolution triggered by the apex court’s order last week. 

 

The SC had permitted the government to reconsider and take an appropriate decision with reference to the additional AGR demand, as well as to comprehensively reassess and reconcile all AGR dues, including interest and penalties up to FY2016-17. “We are in discussion with the DoT for the next steps on this matter,” Kishore added. 

 

The AGR dues stood at Rs 79,500 crore as of September 2025. The company has to pay Rs 16,428 crore as AGR instalment by March 2026, ‘’subject to reconsideration or reassessment of AGR dues including interest and penalty up to FY17’’. The telco’s deferred payment obligation towards spectrum purchases (payable over 20 years till FY44) as well as AGR dues (to be paid till 2031) stood at Rs 2.01 trillion. 

 

While citing the government’s view on the need to prevent a duopoly situation in the telecom sector, Kishore told analysts that the solution to the AGR issue would have a positive impact on its plans to raise funds from banks. 

 

The number three had outlined a capex of Rs 50,000-55,000 crore in 2024 for the next three to five years for rolling out 5G and expanding its 4G coverage. Of this amount, Rs 25,000 crore is expected to come from bank funding. The telco has not been able to get the funding due to lack of clarity on AGR issues.  

 

“We are talking to many banks and NBFCs… As and when we get closer to the deal, we'll come back to you. We are engaged with multiple partners at this point in time,” Kishore said. 

 

For the ongoing financial year, the telco has outlined a total capex of Rs 7,500 to Rs 8,000 crore, of which Rs 4,200 crore has been ploughed in, in the first half. Remainder of the capex will be funded through internal accruals. 

 

On whether a resolution of the AGR matter would potentially delay tariff hikes, the company believes  the two are not connected. But, Kishore reiterated the need for higher tariffs. 

 

“It depends on how the industry takes shape and how leaders take position on the tariff. Is there a requirement of a tariff hike? The answer is yes. How fast and how soon can that happen? We'll kind of wait and watch. I will not really link it to the AGR judgment,” Kishore clarified. 

 

Vi narrowed its consolidated net loss to Rs 5,584 crore in the quarter ended September from Rs 7,176 crore in the same quarter last year, owing to a drop in finance costs, which the company said came from settlements from vendors which were earlier provisioned into its accounts. Lower forex fluctuation also contributed to the improved financials. 

 

Its revenue grew 2.4 per cent year-on-year to Rs 11,194.7 crore in Q2FY26, up from Rs 10,932 crore in Q2FY25. The telco’s stock closed at Rs 10.24 on BSE on Tuesday, up 7.68 per cent following the results.  

 

The monthly average revenue per user (ARPU), a key performance metric, rose to Rs 180 in Q2FY26, up 8.7 per cent from Rs 166 in Q2FY25 and Rs 177 in the quarter ended June 2025, supported by customer upgrades and tariff hikes. Despite the increase, Vi’s Arpu remains the lowest among its peers, with a large gap compared to Bharti Airtel that led the market with an Arpu of Rs 256 and Reliance Jio's Arpu of Rs 211.4 as of the September quarter.

 

Vi’s 4G and 5G subscriber base grew to 127.8 million in Q2FY26 up from 125.9 million in Q2FY25. Its total customer base stood at 196.7 million.