Synopsis:
The shares of VI plunged by 11% today as the government ruled out extending any relief package to the struggling telecom, as it expected to receive relief from the PMO.
The shares of India’s third-largest telecom operator is in focus after a significant statement announced by the government, because of which the company will be facing uncertainties in the future.
With a market capitalization of Rs 72,915 crore, the shares of Vodafone Idea Ltd made a day low of Rs 6.59 per share, down by 11 percent from its previous day closing price of Rs 7.40 per share. Over the past five years, the stock has corrected by over 33 percent.
Reason Behind this fall
The company delivered 10 percent gains in the last two trading sessions as reports emerged that the Prime Minister’s Office was reviewing a relief package to ease the telecom operator’s massive AGR (Adjusted Gross Revenue) dues. Proposed measures included extending the moratorium by two years, allowing more flexible repayments, and even waiving penalties or interest.
However, the shares took a hit as the government ruled out any further AGR support to the telecom major. According to reports, the Department of Telecommunications (DoT) is not planning any new concessions beyond what has already been extended.
Further, Union Minister of State for Communications, Chandra S. Pemmasani, announced that everything necessary for Vodafone Idea has already been taken care of, referring to the 2021 relief package, which converted around Rs 53,000 crore in dues into government equity.
This move gave the government a 49 percent stake, making it the largest shareholder. He emphasized that the company’s future now hinges on its management and the path they decide to pursue.
Earlier, on July 2, Telecom Minister Jyotiraditya Scindia made it clear that the government has no intention of turning Vodafone Idea into a public sector unit. Recently, the company’s shares saw an uptick following reports of potential relief concerning its AGR dues.
As of June-end, the total outstanding dues stand at about Rs 1,95,000 crore, which includes Rs 1,19,000 crore for deferred spectrum payments and about Rs 76,000 crore towards AGR. Additionally, the company’s debt from banks has further reduced to Rs 1,930 crore as of June 30, 2025.
Vodafone Idea (VI) will have to start repaying its AGR (Adjusted Gross Revenue) dues from March 31, 2026. The company owes around Rs 76,000 crore in total AGR dues as of June 2025 and is expected to repay this amount in six equal annual instalments.
This upcoming repayment burden could significantly impact VI’s cash flows and profitability unless it manages to raise capital, improve revenues, or secure further relief.
Also Read: IT stock in focus after securing ₹30.81 Cr purchase order from New India Assurance Company
Financial Highlights
The company’s revenue for Q1 FY26 was Rs 11,022 crore, representing a 5 percent increase from Rs 10,508 crore in the same quarter last year. Additionally, on a sequential basis, revenue increased by 0.07 percent from Rs 11,014 crore in Q4 FY25.
Regarding its profitability, the company reported a net loss of Rs 6,608 crore in Q1 FY26, compared to a loss of Rs 6,432 crore in Q1 FY25. Additionally, on a QoQ basis, it reported a loss of Rs 7,166 crore.
Written by Satyajeet Mukherjee
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