Vodafone Idea Shares Tumble 11% After Government Rules Out Further Relief on AGR Dues

Vodafone Idea shares fell 11.3% in two days to Rs 6.56 after the government ruled out further relief on AGR dues. The Department of Telecommunications confirmed no additional concessions are planned beyond the relief measures already extended. The telco's AGR liability stood at around Rs 75,000 crore as of June 2025, with repayments set to begin in March 2026. Investor sentiment was weighed down by the absence of fresh relief measures and significant liabilities remaining.

Vodafone Idea's shares fell 11.3% over two days, reaching Rs 6.56, after the government ruled out any further relief on the company's adjusted gross revenue (AGR) dues. The Department of Telecommunications (DoT) confirmed that no additional concessions are planned beyond the relief measures already extended.

The government has already converted a significant portion of Vodafone Idea's AGR dues into equity, becoming the single-largest shareholder. The company's AGR liability stood at around Rs 75,000 crore as of the end of June 2025, with repayments set to begin in six equal instalments after the moratorium ends on March 31, 2026.

Investor sentiment has been weighed down by the absence of fresh relief measures and the significant liabilities remaining. Despite the government's equity conversion, Vodafone Idea's financial health remains a concern, with the company indicating in court filings that survival without government support is uncertain.

The government has also been addressing spectrum allocation for satellite communication services, with pricing discussions ongoing. Companies like Elon Musk-led Starlink and Bharti Group-backed Eutelsat OneWeb are among those considering satcom services, but the government has stated that data must be hosted domestically and services cannot be provided using foreign gateways.

References:

[1] https://m.economictimes.com/markets/stocks/news/vodafone-idea-shares-in-focus-after-centre-rules-out-further-agr-relief/articleshow/123516200.cms
[2] https://m.economictimes.com/industry/telecom/telecom-news/dot-not-contemplating-agr-relief-to-vodafone-idea-mos-telecom/articleshow/123506600.cms