Vodafone Idea Shares Slide 1% as Lenders Review Telecom Company’s ₹35,000-Crore Loan Request: Reports

Vodafone Idea shares fell around 1 per cent in early trade on Friday, slipping to ₹11.09 apiece, after reports said lenders are closely examining the telecom operator’s financial position before deciding on its request for a fresh ₹35,000-crore loan. According to a report by Mint, lenders are reassessing the company’s spectrum liabilities, subscriber losses, and weak average revenue per user (ARPU) as part of the evaluation process. An external techno-economic viability (TEV) study conducted in 2024 to assess Vodafone Idea’s creditworthiness is now being updated with revised projections, factoring in recent regulatory developments. However, no fresh TEV study is being undertaken at this stage.

The updated assessment will also account for the adjusted gross revenue (AGR) relief granted by the Supreme Court after the original TEV exercise. The apex court had allowed the government to reconsider Vodafone Idea’s additional AGR dues for the period up to FY2016-17. Sources cited in the report said lenders still lack clarity on the company’s spectrum dues, which remain significantly higher than its AGR liabilities. While Vodafone Idea has been providing data to support the review, the final decision on the loan will be taken only after detailed discussions within the lending consortium.

Last week, Vodafone Idea CEO Akshaya Moondra said the company is grateful to the government for offering a definitive, long-term and conclusive resolution on the AGR issue. Earlier this year, the Department of Telecommunications (DoT) informed the company that its AGR dues — including interest and penalties — as of December 31, 2025, would be frozen and repaid under a revised framework. Under the new schedule, Vodafone Idea will pay up to ₹124 crore annually between March 2026 and March 2031, followed by ₹100 crore annually from March 2032 to March 2035. The remaining reassessed dues will be cleared in equal instalments from March 2036 to March 2041, without any additional interest.

Meanwhile, global brokerage Goldman Sachs has maintained a ‘sell’ rating on Vodafone Idea, even as it raised its target price to ₹5 from ₹2.5, implying a potential downside of nearly 56 per cent from current levels. The brokerage cited high spectrum liabilities, a weak balance sheet, and intense competition as key risks. The stock ended Thursday’s session 0.70 per cent lower at ₹11.33 on the BSE. Despite Friday’s decline, Vodafone Idea shares have seen sharp gains recently, rising 12.4 per cent in the past five sessions, 65 per cent over the last six months, and around 20 per cent over the past year, driven mainly by optimism around fundraising plans and regulatory relief.