Vodafone Idea share price hits 15-month high on AGR relief hopes; should you buy, sell or hold?

Vodafone Idea Share Price: Shares of Vodafone Idea (Vi) climbed to a 15-month high of Rs 12.02, up 3 per cent, in Monday’s intra-day trade on the BSE, even as the broader market remained weak. The telecom operator’s stock has advanced for the third consecutive session, gaining 12 per cent over the period amid heavy trading volumes.

So far in December, Vi shares have soared 21 per cent and are trading at their highest level since September 18, 2024. The stock has staged a sharp rebound of 96 per cent from its 52-week low of Rs 6.12, touched on August 14, 2025. At 09:49 AM, Vi was trading 1 per cent higher at Rs 11.74, outperforming the 0.4 per cent decline in the BSE Sensex. The counter witnessed robust activity, with a combined 423 million shares changing hands on the NSE and BSE.

What’s driving the rally in Vodafone Idea shares?

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The recent surge in Vodafone Idea shares are because of the reports that the government may offer an interest-free moratorium of four to five years on over Rs 83,000 crore of Vi’s pending statutory dues linked to adjusted gross revenue (AGR), providing immediate relief to the cash-strapped telco. After the moratorium, arrears are expected to be paid in six instalments, with the overall liability potentially cut by nearly half following a reassessment, according to media reports citing sources.

Adding to the optimism, the Supreme Court last month allowed the Centre to devise a special relief package for Vi covering its entire AGR liabilities. Resolution of the issue could pave the way for the company to raise fresh capital, including its planned Rs 25,000 crore fundraise.

Vi’s management had earlier indicated, during the Q2FY26 earnings call on November 11, 2025, that discussions were underway with the Department of Telecommunications (DoT) regarding next steps.

Vodafone Idea: Should you buy, sell or hold the stock?

Brokerage views remain cautious. Motilal Oswal Financial Services noted that beyond a potential ~50 per cent waiver in AGR dues, Vi would need favourable payment terms for both AGR and spectrum liabilities, alongside tariff hikes and a reduction in competitive intensity to ensure a sustained turnaround—factors not entirely within the company’s control. Meanwhile, JM Financial Institutional Securities expects industry ARPU to grow at a 12 per cent CAGR over FY25–28, supporting a ‘3+1’ market structure and improving sector profitability.

However, analysts flagged that Vi is currently trading above their target price of Rs 11.5, suggesting limited near-term upside at current levels despite the relief-led rally.