Vodafone Idea Shares Slide as Government Rules Out Additional AGR Relief

29 Aug 2025 , 02:13 PM

Vodafone Idea came under pressure this week, with shares sliding over 11% in two sessions to an intraday low of ₹6.56. The fall followed the government’s clear stance that no additional concessions would be offered on adjusted gross revenue (AGR) dues, beyond relief already extended.

The Department of Telecommunications confirmed that the earlier support measures remain the limit, dampening investor sentiment around the debt-laden operator.

The government has already provided sizeable backing in recent years:

• In March 2025, it converted ₹36,950 crore of dues into equity.
• In 2023, it took a 33% stake against ₹16,000 crore of dues, making it Vodafone Idea’s largest shareholder.

Despite these steps, the company’s AGR burden remains heavy. As of June 2025, total liability stood at around ₹75,000 crore. Repayments will start after the moratorium ends on March 31, 2026, spread over six equal installments.

Vodafone Idea has also admitted in court filings that survival without further government support remains uncertain raising questions over its:

• Cash flow strength
• Ability to raise funds
• Long-term viability in a hyper-competitive telecom market

The market’s sharp reaction underscores the uncertainty clouding the company’s future, even as rivals push ahead in India’s fast-evolving digital ecosystem.

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