Vodafone Idea Surges 2% Amid Government AGR Support and Bullish Broker Calls

Vodafone Idea Ltd (NSE: IDEA) showed a sharp recovery today, with the stock trading at ₹10.52, up 2.24 %. This rebound comes a day after the counter slipped nearly 5%, closing at ₹10.29 on Monday following a sharp mid-week rally. Today’s up-move indicates selective buying and short-term recovery interest from traders who viewed yesterday’s dip as an opportunity. The price action also reflects the stock’s ongoing volatility, driven largely by sentiment rather than any major fundamental trigger. Analysts remain cautious, because while regulatory relief or funding could give a boost, the telecom-sector headwinds and VIL’s debt burden still weigh heavily.

Motilal Oswal Financial Services in a fresh note said the government is working on a relief package for Vodafone Idea (VI) to ensure 3+1 market structure in the Indian telecom industry, aiming to maintain a competitive market and keep telecom services affordable. While tariffs remain under forbearance, a significant relief on AGR dues for Vodafone Idea could lead to a delay in potential tariff hikes, MOFSL said. JM Financial has also maintained a BUY rating on VIL and increased the target price to ₹12. The company’s Q2FY26 performance (as per JM Financial) gives some encouraging signals. According to a NDTV Profit report, the government is reassessing Vodafone Idea’s adjusted gross revenue liabilities following the Supreme Court’s October directive allowing reconciliation of dues up to FY17, including interest and penalties.

Officials from the Department of Telecommunications and Finance Ministry have held preliminary discussions. The report adds a complete waiver of AGR dues is off the table. The intent, insiders say, is to support telcos’ revival within legal boundaries, with another round of meetings expected soon.Last month, the Supreme Court on Nov. 4 allowed the government to review the company’s pending adjusted gross revenue dues. In its plea, the telecom operator had asked for relief on both additional AGR dues and a reassessment of all pending dues.   The apex court said that the government can review and re-evaluate the AGR dues up to the financial year 2016-17, including interests and penalties. For the telecom companies, the government uses AGR as a measure to calculate the licence fees and spectrum charges. In May the company sought relief from cumulative AGR liabilities exceeding Rs 80,000 crore, citing financial strain. Then, On Sept. 8, Vodafone Idea approached the court again, contesting the DoT’s demand for an additional Rs 9,450 crore. The company also requested a waiver of interest and penalties.