Telecom operator Vodafone Idea on Friday laid out a detailed repayment roadmap for its adjusted gross revenue (AGR) liabilities, under which it will service a portion of the dues at a maximum of Rs 124 crore per year over a six-year period. The company’s shares rose about 3% in early trade after the announcement. The stock is currently trading at Rs. 11.80 against the previous close of Rs. 11.50.
In its stock exchange filing, Vodafone Idea said its AGR liabilities — including principal, interest, penalty and interest on penalty for FY2006-07 to FY2018-19 — outstanding as of December 31, 2025, will be frozen and repaid in a phased manner. As per the Department of Telecommunications (DoT) communication, the company will pay up to Rs 124 crore annually for six years from March 2026 to March 2031. This will be followed by payments of Rs 100 crore per year for four years from March 2032 to March 2035. The balance AGR dues will then be cleared in equal annual instalments over six years from March 2036 to March 2041.Vodafone Idea also said the DoT will constitute a committee to reassess the AGR dues, and the committee’s decision will be final. After the reassessment, the revised AGR amount will be repaid in equal annual instalments between March 2036 and March 2041.
Milan Vaishnav, MSTA, Founder of Gemstone Equity Research & Advisory Services in a moneycontrol report has advised investors to avoid Vodafone Idea and use any upward moves to exit the stock. “If investors choose to remain invested, exposure should be limited to no more than 5 percent of the total portfolio,” he added.Continuing further he said, it is not possible to analyze Vodafone Idea purely from a technical perspective. The main drivers of its price over past many quarters is the developments on AGR dues and the rulings from the court that have come from time to time. The stock has rising over the past quarter despite negative divergences on the lead indicators.In my opinion, investors should avoid this stock and use all up moves to exit the stock. If they wish to stay invested, not more than 5 percent of the total portfolio should be allocated to such stocks. Brokerage Emkay Global continued to maintain its 'SELL' rating on Vodafone Idea stock with a target price of ₹6, despite government relief packages, as it believes the company's leverage remains high. The domestic brokerage said that the telco’s financial position remains stressed despite repeated relief packages.