Synopsis
Vodafone Idea shares surged to Rs 7.40 on Monday, continuing a two-day gain of over 15 percent after the Department of Telecommunications came up with relief options for the heavily leveraged telecom company, which include a two-year moratorium, easier repayment terms, lower installments, and a possible waiver of penalties on AGR dues of Rs 83,400 crore.
The shares of one of the leading telecom service providers in India caught the attention of the participants. The company offers mobile and long-distance services, along with the sale of handsets and data cards, and soared to a 10 percent gain in two consecutive days after the Department of Telecommunications came up with relief options for the company.
With a market capitalization of Rs.80,173.85 crore, the shares of Vodafone Idea Limited closed at Rs.7.40 ,up by 4.67 percent from the previous day’s closing price of Rs.7.07. The prices surged from Thursday’s closing price of Rs.6.55 to today’s high of Rs.7.60, increasing by 16 percent.
Relief option
As per available information in August 2025, the Prime Minister’s office received informal details of relief measures, such as a two-year pause on paying the statutory dues, easier repayment terms, lower installments, and a waiver of penalties on adjusted gross revenue dues of Rs 83,400 crore from the Department of Telecommunications to help the highly debt-ridden company.
Vodafone Idea has to repay the AGR dues of Rs.83,400 crore with an annual payment of Rs. 18,000 crore. Repayment of interest and penalty amounts to Rs. 2 lakh crore. Meanwhile, the company is facing high debt, is seeking funding from non-banking sources to continue its capital expenditure plans, according to a PTI report earlier this month.
If Vodafone Idea fails to continue its operations, it could affect both the Indian banking and telecom sectors. The company owes around Rs.1,950 crore to Indian banks as of the June quarter. Additionally, without a recovery in its operation, the telecom market could become dominated by just two major players.
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Shareholding and Financials
As of June 2025, promoters hold 25.57 percent of the company, FIIs hold 5.98 percent, DIIs hold 4.14 percent, the government holds 49.02 percent, and the public holds 15.28 percent.
Revenue from operations soared from Rs.10,508 crore in Q1Y25 to Rs.11,022 crores in Q1FY26, accompanied by a net loss increase from Rs.6,432 crores in Q1FY25 to Rs.6,611 crores in Q1FY26.
Vodafone Idea Limited is India’s third-largest mobile service provider in terms of subscriber base. It provides wireless broadband services across India, including 2G, 3G, and 4G. It runs its own NLD and ILD networks and has an ISP license. It offers cost-effective mobile services to diverse users and holds 8,005.2 MHz of spectrum across 22 service areas, with most of it (7,975.2 MHz) usable for any technology.
Written By: Jhanavi Sivakumar
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