Vodafone Idea share price zoomed 7.5% in intraday deals on Monday, August 25, taking its two-day gains to 16% amid reports of likely relief on the adjusted gross revenue (AGR) dues worth ₹83,400 crore.
Vodafone Idea share price rallied as much as 7.49% to the day’s high of ₹7.60 in intraday deals today. The stock had surged nearly 8% in intraday trade on Friday after a Mint report suggested that the Department of Telecommunications (DoT) has proposed “multiple relief options” to steady the debt-laden Vodafone Idea.
According to the report, one of the suggestions floated by DoT includes a two-year pause on paying the statutory dues under the moratorium currently.
The DoT also proposed giving Vodafone Idea more time to repay dues, smaller annual payouts, and a waiver on penalties and interest on penalties on AGR payments, the Mint report added.
Vodafone Idea AGR Dues Details
The report further said that Vodafone Idea AGR dues amount to ₹83,400 crore, with annual payments of ₹18,000 crore set to begin next March. This amount swells to a massive ₹2 lakh crore, including penalty and interest.
Meanwhile, the debt-ridden Vodafone Idea is looking to raise funds from non-banking sources to maintain continuity of its capex plan, a PTI report earlier this month said.
During the company’s earnings call for the June 2025 quarter, Vodafone Idea CEO Akshaya Moondra said that the banks are looking for clarity on the AGR matter before issuing debt to the telco.
Vodafone Idea, along with other players like Bharti Airtel, BSNL, MTNL etc., had contested claims of the Department of Telecom on the definition of AGR. After several years of litigation, the Supreme Court in October 2019 ruled in favour of the DoT and asked the telcos to clear the entire dues as claimed by the government.
Failure on the part of Vodafone Idea to sustain operations doesn’t bode well for the Indian banking and telecom sectors as well. The company owes nearly ₹1950 crore to Indian banks as of the June quarter. Moreover, a lack of a potential turnaround in Vodafone Idea’s fortunes could turn the telecom sector into a duopoly.
Vodafone Idea shares: What should investors do?
Osho Krishan, Sr. Analyst – Technical & Derivative Research, AngelOne, said Vodafone Idea share price has observed a notable increase in both price and trading volume over the past few sessions, achieving a recovery of nearly 20% from its recent lows.
“The stock currently approaches its 200-day simple moving average, which has historically imposed limitations on upward momentum. Consequently, a cautious approach is advisable at this stage,” Krishan said.
He added that 6.50 is anticipated to function as an intermediate support level, while a decisive increase beyond the range of 7.80 to 8.00 may potentially catalyse new momentum for the stock.
Meanwhile, according to Trendlyne data, the consensus recommendation from 20 analysts for Vodafone Idea stock is ‘SELL’.
Despite equity infusion and acceleration in network capex, Vi has continued to lose market share to peers, said brokerage Motilal Oswal as it reiterated ‘SELL’ with a target price for Vodafone Idea shares of ₹6 following the company’s Q1 performance.
Furthermore, it added that tariff hikes do not benefit Vi as much as its peers.
“In the absence of relief on AGR dues (~INR164b annual repayments starting Mar’26) and the closure of debt raise, Vi’s planned capex of INR500-550b remains in jeopardy, potentially resulting in higher subscriber churns,” MOSL said.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
