Vodafone Idea shares rally 8% after govt cuts AGR dues by 27%. Time to buy?

The shares of Vodafone Idea jumped nearly 8% on Monday after the Department of Telecommunications (DoT) reduced the telco’s adjusted gross revenue (AGR) dues by 27% to Rs 64,046 crore as of December 31, resulting in bullish calls for the stock.

In an exchange filing released in the post-market hours of Thursday, ahead of the market holiday on Friday resulting in a long weekend for the stock market, Vodafone Idea announced that DoT formed a committee to reassess its AGR dues as per the order passed by the Supreme Court earlier. DoT in January this year had frozen AGR dues at Rs 87,695 crore as of December 31, 2025.

“In this regard, we now wish to submit that the DoT, vide its communication dated April 30, 2026, has informed that the committee formed for the purpose has finalised the AGR dues at Rs 64,046 crore as on December 31, 2025,” the company said.


It added that, as per the latest government order, the final amount will be payable in tranches. A minimum of Rs 100 crore will be paid annually over four years from FY32 to FY35. The remaining amount will be paid in six equal instalments annually from FY36 to FY41.

Vodafone Idea's AGR dues issue

The government in December last year approved a partial moratorium on Vi’s dues, freezing them at Rs 87,695 crore and deferring repayments to the 2030s, which provided near-term cash flow relief for the debt-ridden firm.

The DoT’s decision provides another respite to Vodafone Idea, which faced a Rs 16,400 crore payment due in March 2026. The company continues to grapple with a total debt burden of nearly Rs 2 lakh crore, comprising statutory dues. However, the latest relief significantly bolsters its ability to raise fresh funding and invest in network improvement to compete with larger rivals Reliance Jio and Bharti Airtel.

Under the 2021 telecom relief package, the government converted a portion of Vi’s dues into equity, eventually raising its stake to 48.99%, making it the company’s largest shareholder. In February 2023, nearly Rs 16,000 crore of interest on deferred spectrum and AGR dues was converted into equity, giving the government about a 33% stake at the time. This was followed by the conversion of an additional Rs 36,950 crore of spectrum auction dues into equity in April 2025.

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Citi on Vodafone Idea

Citi upgraded the shares of Vodafone Idea to “Buy-High Risk” with a target price of Rs 14 per share, implying an upside potential of 37%. The brokerage said the long-pending AGR uncertainty, which had weighed on lender confidence and delayed capital raising, has now largely been resolved.

"The years-long AGR saga for Vodafone Idea has finally concluded," Citi said in its report, adding that with the government taking a 36% stake in the company at Rs 10 per share, the effective haircut on AGR dues works out to roughly 20% below the RBI’s estimate of recovery value.

According to the international brokerage, the latest development creates positive implications for both minority shareholders and potential debt providers. The brokerage expects this development to materially improve the company’s ability to secure funding for its next phase of network rollout.

Vodafone Idea share price

Vodafone Idea shares have gained over 5% in one week and around 19% in one month to close at Rs 10.22 apiece on the NSE on Thursday. Overall, the stock has declined over 12% in 2026 so far, but gained more than 44% in one year. The stock today jumped nearly 8% to trade at Rs 11 apiece on the NSE.

In the longer term, the shares of the telecom company have gained more than 45% in three years and over 23% in five years.

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