Synopsis: Vodafone Idea has been given a lifeline, as its AGR demand of Rs 87,695 crore is frozen and deferred to a distant future. Rather than receiving detrimental payouts in FY26, the payouts have been capped at Rs 124 crore for the duration of FY31. This gives Vodafone a much-needed breather to get its act together.
The shares of this company, which is one of the leading telecom service providers in India and is engaged in the business of mobility, long-distance services, and trading of handsets and data cards, had its shares in the news following the updates regarding its AGR dues.
With the market cap of Rs 1,30,000 crore, the shares of Vodafone Idea Ltd have reached a high at Rs 12.51, gaining almost 9% compared to its previous day’s closing price of Rs 11.5. The shares have given a return of more than 60% in the last 6 months.
About the renewed AGR dues
Prior to the recent relief, the AGR dues of Vodafone Idea were believed to be Rs 87,695 crores, including principal, interest, and late payment fees and accumulated years of interest on late payment fees. As per the earlier treatment, the company was expected to pay off the dues with an enormous payment beginning in the same FY26, and this threatens its solvency and its capacity to invest in its operations and retain its customers.
The Department of Telecommunications has now frozen the AGR dues for Vodafone Idea as of December 31, 2025, for the disputed period ranging between FY07 and FY19. The repayments have been eased to a great extent with a maximum of Rs 124 crores every year between March 2026 and March 2031, and then an additional Rs 100 crores between March 2032 and March 2035, along with the balance payments evenly between March 2036 and March 2041.
This means that the schedule of payment has reduced financial strains by more than a decade. This is particularly because Vodafone Idea has eliminated financial stresses associated with huge expenditures every year by providing a small amount every year, giving time to maintain continuity and discharging important capex in a telecom sector, which is highly capital-intensive. This does not mean that the financial burden is reduced; only time has been provided for payment.
Furthermore, apart from deferred payments, DoT will form a committee that would reassess the AGR dues, and their decision would be final. The revised amount, if any, will be payable only in the second phase, which would be between March 2036 and March 2041, thereby casting uncertainty further into the future. Although it does not remove the difficulties faced by Vodafone Idea, it certainly reduces regulatory overhang and tail risks for AGR, which enhances the longevity and investors’ optimism in the company
The revenue from operations for the company stood at Rs 11,195 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 10,932 crores, up by about 2 per cent YoY. Similarly, the net loss stood at Rs 5,524 crore in Q2 FY26, down from Rs 7,176 crore in Q2 FY25.
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