Vodafone Idea Share Price Surges 9% After DoT Freezes AGR Dues - Key Details

The shares of telecom major Vodafone Idea surged as much as 9% to hit an intra-day high of Rs 12.51 apiece on Friday's trading session after the Department of Telecommunications (DoT) froze its adjusted gross revenue (AGR) dues, including principal, interest, penalty and interest on penalty, as of December 31, 2025. 

According to an exchange filing, "Maximum Rs. 124 crore to be paid annually over next 6 years i.e. March’ 2026 to March’ 2031; (b) Rs. 100 crore to be paid annually over 4 years i.e. March’ 2032 to March’ 2035; (c) The remaining AGR dues, has to be paid in equal installments annually over 6 years, i.e. March’ 2036 to March’ 2041."

"A committee will be constituted by the DoT to reassess the AGR dues, whose decision shall be final. Thereafter, the reassessed amount is to be repaid between March’ 2036 to March’ 2041 in equal annual installments," as per the BSE filing.

The official communication from Vodafone Idea comes after the cabinet on December 31 took the decision to provide leeway to the Gandhinagar-based telecom operator, involved freezing its Rs 87,695 AGR as of December end.

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While the centre has extended the timeline to pay its AGR dues, concerns over spectrum dues of ₹1.17 trillion and call over final AGR amount post reassessment remain.

The government owns nearly 49% stake in the stressed telecom player Vodafone Idea after converting nearly Rs 53,083 crore of dues into equity in two tranches- February 2023 and April 2025. Of the nearly Rs 2 trillion in total government dues, about Rs 1.17 trillion relates to spectrum payments rather than AGR.

The company's AGR dues for the period FY06-07 to FY18-19 stood at ₹87,695 crore, as of 31 December.

AGR dues constitute as the portion of revenue telecom operators must pay to the government as license fees and spectrum usage charges.

In a brokerage note dated 1 January, Emkay Global maintained a ‘sell’ rating on the stock with a target price of ₹6.

“Contrary to the street's expectations of at least a 50% waiver, no waiver on the pending dues linked to AGR was provided by the cabinet,” the brokerage house said in the note.

“While the relief package addresses AGR dues, Vi (Vodafone Idea) also has Rs 1.2 trillion of deferred payment obligations toward spectrum, with significant scheduled payments between FY26 and FY44. The current Ebitda is insufficient to meet the capital expenditure (capex) or spectrum debt repayment requirements. The company will need additional relief/funding to alleviate such challenges,” it said.