During Monday’s trading session, shares of one of the leading telecom service providers in India fell over 12 percent on BSE. The factors contributing to this drop in share price are discussed below.
With a market cap of Rs. 72,914.8 crores, the shares of Vodafone Idea Limited closed in the red at Rs. 6.73 on BSE, down by around 9 percent, as compared to its previous closing price of Rs. 7.37. The stock has delivered negative returns of more than 50 percent in one year, and has fallen by nearly 17 percent in the last one month.
What’s the News
Telecom operator Vodafone Idea Limited (VIL) has informed the Department of Telecommunications (DoT) that it may be unable to continue operations beyond FY26 without government intervention on adjusted gross revenue (AGR) dues. The company also noted that ongoing discussions with banks to raise funds could fall through without timely support. On 17th April 2025, VIL’s CEO Akshaya Moondra wrote a letter to the Telecom Secretary, urging the government to step in quickly, according to a report by PTI.
Despite the plea, on 29th April, the government rejected CEO Moondra’s request to waive interest and penalties on the company’s AGR dues, which amount to $9.76 billion, citing risks over VIL’s survival, as per Reuters.
At the same time, the Supreme Court has agreed to hear a new petition from VIL, seeking relief of ~Rs. 30,000 crores in AGR-related dues. Senior advocate Mukul Rohatgi, representing the telecom company, requested an urgent hearing before the bench. The case is scheduled to be heard on 19th May. In its communication to the DoT, VIL warned that without the release of bank funding, its planned capital investments would not be possible.
The company warned that any progress in operational improvements would come to a halt, and the funds raised over the past year—along with the government’s equity stake, including the recent conversion—would be exhausted, effectively stalling its capex cycle.
VIL also indicated that, without government support and given its inability to meet AGR obligations, it may be forced to initiate insolvency proceedings under the National Company Law Tribunal (NCLT). This could disrupt services and result in a significant loss of value for its network and spectrum assets.
The company estimated that nearly 200 million subscribers could be forced to port to other networks if service continuity is affected. It stressed that timely intervention by the government would safeguard public interest and deliver considerable benefits to the Indian economy. According to the global brokerage firm CLSA, Vodafone Idea’s net debt stood at $25 billion as of September 2025.
Vodafone Idea Limited, one of the leading telecom service providers in India, is engaged in the business of telecommunication services, including mobility and long-distance services, trading of handsets and data cards. The company is an Aditya Birla Group and Vodafone partnership.
Vodafone Idea reported a marginal growth in consolidated revenue from operations, experiencing a year-on-year increase of nearly 4 percent, rising from Rs. 10,673 crores in Q3 FY24 to Rs. 11,117 crores in Q3 FY25. Similarly, during the same period, the company’s net loss decreased by around 5 percent YoY from Rs. 6,986 crores to Rs. 6,609 crores.
Written by Shivani Singh
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