Vodafone Idea Jumps 8% Today on AGR Relief

Mumbai | 9 January

Shares of Vodafone Idea rose as much as 8% to an intraday high of ₹12.52 after the company disclosed DoT’s relief on its AGR dues.

What has the government approved

The DoT has directed Vodafone Idea to pay ₹124 crore per year from March 2026 to March 2031, sharply reducing the company’s near-term cash outgo from earlier schedules.

This follows a Cabinet decision on December 31, under which the government approved a partial moratorium on Vodafone Idea’s AGR dues. As part of this, ₹87,695 crore of AGR liabilities were frozen, with repayments scheduled between FY32 and FY41.

The Indian government holds a 49% stake in the telecom operator.

What exactly changed

The relief does not reduce Vodafone Idea’s total AGR liability. It restructures the timing of payments.

• ₹124 crore per year from March 2026–31
• ₹100 crore per year from March 2032–35
• Remaining dues to be paid in equal instalments from March 2036–41

The structure lowers annual payments in the coming decade, when cash flows are under the most pressure.

What happens to the remaining dues

For payments beyond 2035, a committee will reassess the AGR amount. The final figure will then be repaid in equal annual instalments between March 2036 and March 2041, according to the company’s exchange filing.

Telecom operators, including Vodafone Idea, have long challenged the government’s method of calculating AGR, which forms the basis for licence fees and other statutory payments.

Why did the market react positively

Investors reacted to better cash-flow visibility, not a reduction in dues. Lower annual payments reduce near-term financial stress and improve the company’s ability to manage operations and network spending.

For the market, clarity on repayments mattered more than the headline size of the liability.

Stock movement

Vodafone Idea shares rose 8% and touched an intraday high of ₹12.52. The stock has gained 49%in last one year. Shares of Indus Towers also traded 2% higher, tracking improved sentiment around the telecom sector.

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