Synopsis:
Vodafone Idea is in focus after brokerage has cited that the company can experience another upside of 19%; however, CITI has cited that this play will be a high-risk buy for investors, as both the government and the Supreme Court are looking to ease pressures on this telecom major.
The shares of this third-largest telecom company are in focus after CITI has cited new developments in its company’s AGR-related dues. In this article, we will dive more into the details of it. As of July 2025, the company is the third-largest wireless mobile services provider with a market share of 17.52 percent.
With a market capitalization of Rs 89,275 crore, the shares of Vodafone Idea Ltd made a day high of Rs 8.38per share, up by 3 percent from its previous day closing price of Rs 8.02 per share. Over the past five years, the stock has delivered a negative return of 11 percent, against the NIFTY 50 return of 115 percent.
About the Plea
A few days back, Vodafone Idea was slapped with a new Rs 9,450 crore adjusted gross revenue (AGR), including Rs 5,606 crore from the pre-FY17 period, from the Department of Telecommunications. (DoT). However, the company challenged this claim in the Supreme Court (SC) and is now pending for hearing.
As of the end of June, the total outstanding dues stand at approximately Rs 1,95,000 crore, which includes Rs 1,19,000 crore for deferred spectrum payments and approximately 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.
Coming to its recent plea, the Supreme Court postponed Vodafone Idea’s Adjusted Gross Revenue (AGR) plea to next Friday, September 26, after the government said it was not against the telecom’s AGR plea and highlighted that some solution was required.
However, once again, the Supreme Court has deferred the hearing on the plea to October 6th 2025. This verdict is crucial to decide what will happen to the future of the firm, as the government is the major shareholder in it, and it won’t let it go to waste.
Also Read: Tata Group stock jumps 3% after LIC increases 5% stake in the company
Analyst Comment
Global brokerage, CITI bank, has set a price target of Rs 10 per share, signalling an upside of 22 percent from its previous day’s closing price of Rs 8.25 per share. However, he cited that the company is a “High-risk Buy”.
According to the brokerage, the chances for Vodafone Idea to get some relief are now higher, after the apex court took up its new AGR petition and the government showed its backing. The firm is demanding that its AGR liabilities be considered settled or only rechecked up to the financial year 2017 if any adjustments are made.
Written by Satyajeet Mukherjee
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