Vi shares jump 9% on DoT communication on AGR dues relief; pare gains later

In a month, Vodafone Idea share price has gained 7 per cent, as compared to Sensex's rise of 0.57 per cent

Vodafone Idea (Vi) shares gained 8.7 per cent on BSE, registering an intra-day high at ₹12.51 per share, which was 2.3 per cent away from its 52-week high at ₹12.8 per share. The stock was in demand after the company received communication from the Department of Telecommunications (DoT) on adjusted gross revenue (AGR) relief.  

 

At 9:17 AM, Vi’s share price was trading 5.3 per cent higher at ₹12.11  on the BSE. In comparison, the BSE Sensex was up 0.06 per cent at 84,229.6. The stock commands a market capitalisation of ₹1,31,203.42 crore, with a 52-week low at ₹6.12 per share. However, around 11:50 AM, Vodafone Idea shares reversed gains and were trading 0.09 per cent lower at ₹11.49 per share.

 

 

In a month, Vi shares have gained 7 per cent, as compared to Sensex’s rise of 0.57 per cent.   FOLLOW STOCK MARKET UPDATES LIVE 

According to the filing, Vi’s AGR dues (including principal, interest, penalty and interest on penalty) for FY 2006-07 to FY 2018-19, will be frozen as of December 31, 2025 and repaid over a long schedule: 

• Up to ₹124 crore annually from March 2026 to March 2031.
•  ₹100 crore annually from March 2032 to March 2035, with the remaining amount to be paid in equal annual instalments from March 2036 to March 2041. 

DoT will also set up a committee to reassess the AGR dues, and the final reassessed amount will be repaid during March 2036 to March 2041 in equal annual installments.

 

Recently, reports suggested that the Union Cabinet approved a relief package for the debt-laden telecom operator Vodafone Idea (Vi), freezing its adjusted gross revenue (AGR) dues at ₹87,695 crore as of December 31, and granting it a five-year moratorium.  ALSO READ | Motilal Oswal bullish on M&M's healthy launch pipeline; retains 'Buy' 

The telecom operator, however, denied receiving any communication from the Centre regarding the relief package. 

 

"We have not received any communication from the Government in relation to the above-reported matter.  As and when there is any development which requires disclosure, we will do the needful," Vi said in a BSE filing.

Analysts' view on Vodafone Idea shares

Kranthi Bathini, equity strategy, WealthMills Securities, believes the DoT's move for AGR refief is positive for Vi in short to medium term.  

“This DoT communication is positive and offers near-term financial relief for Vodafone Idea. But the company still needs to improve its business fundamentals—especially subscriber additions and average revenue per user (ARPU). The stock remains suitable only for high-risk investors, even though the relief helps in the short to medium term," he said.  Similarly, Thomas V Abraham, research analyst at Mirae Asset Sharekhan said, "This relief significantly lowers Vodafone Idea's cash payouts, thereby assisting in re directing funds towards expansion of 5G networks, managing other debts, and lifting average revenue per user (ARPU). In essence, this will boost financials, helping the company to compete better against market leaders such as Jio and Airtel."  Abraham noted that Vodafone Idea confronted annual AGR commitments of roughly ₹16,400 crore starting March 2026 and extending through fiscal year 2031, tied to liabilities accumulated through FY19. Layered on top were spectrum-related payments of about ₹2,600 crore each year from September 2026 until FY44, resulting in total yearly cash drains surpassing ₹18,000 crore at the outset.  Total Adjusted Gross Revenue (AGR) obligations stood at ₹87,695 crore in dues—including principal, interest, and penalties accrued from FY07 to FY19—as calculated up to December 31, 2025.    Meanwhile, Khushi Mistry, research analyst at Bonanza said, "The outlook improves Vi's financial stability, aiding fundraising and investments, though operational challenges persist. Shares rallied on hopes, but challenges like subscriber losses and competition persist—execution is key for turnaround."  Disclaimer: View and outlook shared on the stock belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.