Explained: Vodafone Idea Q4 Results 2025, AGR Setback & Fundraising Plans — What Should Investors Do?

Vodafone Idea (Vi), India’s third-largest telecom operator, is under intense financial pressure as it continues to grapple with massive adjusted gross revenue (AGR) dues.

Just days before it is scheduled to announce its Q4 FY25 financial results on May 30, 2025, the company is back in the spotlight following a major Supreme Court ruling and renewed attempts to raise funds.

Supreme Court Rejects VI AGR Waiver Plea

On May 19, 2025, the Supreme Court of India rejected Vodafone Idea’s plea seeking a waiver of over Rs 45,000 crore in interest, penalties, and interest on penalties related to its AGR liabilities.

The court dismissed the plea as “misconceived,” reinforcing its 2019 stance that telecom companies must pay AGR dues calculated on both core and non-core revenues like rent, sale of assets, and other income.

With this, Vodafone Idea’s total AGR dues remain at a staggering Rs 83,400 crore. While the government had earlier tried to ease the burden by converting Rs 39,000 crore of the dues into equity (making the government the single-largest shareholder with a 49% stake), this recent ruling has further intensified the financial strain on the company.

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VI Financial Lifeline and CEO's Warning

In light of the Supreme Court decision, Vi has revived talks with banks to raise over Rs 22,000 crore through debt. These discussions had stalled earlier due to uncertainty around the AGR issue, but the company is now urgently pursuing funding options.

Akshaya Moondra, CEO of Vodafone Idea, in a letter dated April 17, 2025, warned that the company might not be able to continue operations beyond FY26 without timely support from the government to manage its AGR dues. He emphasized that a delay in relief could jeopardize the viability of the telecom operator.

VI Board Meeting on May 30: Fundraising Plans

Vi has informed the stock exchanges that its Board of Directors will meet on May 30 to approve the Q4 and full-year results for FY25. More importantly, the board will also discuss and evaluate fundraising proposals.

This includes the possibility of raising funds through multiple modes, such as a rights issue, qualified institutional placement (QIP), foreign bonds, convertible debentures, or a combination of these instruments.

The company may also seek shareholder approval by convening an extraordinary general meeting (EGM) to move forward with these fundraising plans.

Vodafone Idea Share Price Target 2025

According to stock analytics platform Trendlyne, Vodafone Idea has a Durability Score of "Not Eligible", signalling weak and inconsistent financial performance. This reflects unstable revenue, poor cash flow, and high debt levels.

The Valuation Score is just 25, meaning the stock is considered expensive relative to its financial fundamentals. The Momentum Score stands at 37, indicating a technically neutral position, showing that the stock lacks strong buying momentum.

Among 22 analysts tracked by Trendlyne, the consensus rating is ‘SELL’, with a target price of Rs 8, suggesting a potential upside of about 13.4% from current levels.

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