Telecom stock jumps 4% after potential AGR relief ahead of year end

Synopsis:
Vodafone Idea shares surged 4% following Telecom Minister Scindia’s statement that AGR relief, potentially reducing Rs. 9,500–Rs. 80,000 crore dues, could be finalized by year-end, boosting investor optimism.

This company is one of the leading telecom service providers in India. The Company is engaged in the business of Mobility and Long Distance services, trading of handsets and data cards is now in the spotlight after AGR relief measures expected by this year ends.

With market capitalization of Rs. 1,10,185 cr, the shares of Vodafone Idea Ltd are currently trading at Rs. 10.18 per share, jumping 4% in today’s market session making a high of Rs. 10.32, from its previous close of Rs. 9.94 per share.

Adjusted Gross Revenue (AGR) refers to the total revenue earned by telecom companies that forms the basis for paying license fees and spectrum usage charges to the Indian government. 

Initially, AGR was supposed to include only revenue from telecom services, but the Department of Telecommunications (DoT) broadened the definition to include all revenues, including non-core income sources like rent, dividends, interest, and profit from asset sales.

News

Vodafone Idea shares rose 4% following Telecom Minister Jyotiraditya Scindia’s statement that the government may finalize relief recommendations on the company’s AGR dues within the next few weeks, potentially by year-end. 

Scindia emphasized that the Centre is awaiting a formal request from Vodafone Idea and must operate within the legal framework set by the Supreme Court, which recently allowed the government to reconsider Vodafone Idea’s plea on AGR dues. 

This legal allowance applies specifically to Vodafone Idea’s case, giving the government the freedom to assess relief on both the additional AGR dues of around Rs. 9,500 crore and the full pending dues amounting to approximately Rs. 80,000 crore.​

About the company 

Vodafone Idea Ltd, branded as Vi, is a major Indian telecom company formed in 2018 through the merger of Vodafone India and Idea Cellular. It provides mobile voice, data, broadband, and enterprise services across India, covering 2G, 3G, 4G, and increasingly 5G networks. Despite having extensive infrastructure with hundreds of thousands of towers and fibre‑optic networks, the company has faced significant financial challenges, including high debt largely due to spectrum and statutory dues. 

As of Q2FY26, Vodafone Idea Ltd reported modest growth in its financials. Sales rose by 2% year-on-year to Rs. 11,195 crore, up from Rs. 10,932 crore in Q2FY25. EBITDA increased by 3% YoY to Rs. 4,685 crore. The company’s net loss narrowed significantly from Rs. 7,176 crore in Q2FY25 to Rs. 5,524 crore, while its EPS improved from Rs. -1.03 to Rs. -0.51. 

Written by Manideep Appana

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