Vodafone Idea stock rallies 9% on DoT letter over AGR dues relief

Vodafone Idea (Vi) shares jumped 8.7 per cent on the BSE on Thursday. The stock hit an intraday high of Rs 12.51 per share. This level was about 2.3 per cent short of its 52-week high of Rs 12.80.

The rally came after the company received a communication from the Department of Telecommunications on relief related to adjusted gross revenue (AGR) dues. The update boosted investor sentiment and led to strong buying interest in the stock.

In an exchange filing, Vodafone Idea said it has received a communication from the Department of Telecommunications (DoT) granting relief in the long-pending AGR matter.

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AGR dues frozen till reassessment

The company said its AGR dues, including principal, interest, penalty and interest on penalty, for the period from FY 2006-07 to FY 2018-19 have been frozen as of December 31, 2025.

These dues will now be paid in a staggered manner over multiple years.

Revised payment schedule

As per the DoT communication, Vodafone Idea will pay a maximum of Rs 124 crore annually for six years from March 2026 to March 2031. This will be followed by payments of Rs 100 crore annually for four years from March 2032 to March 2035.

The remaining AGR dues will be paid in equal annual instalments over six years from March 2036 to March 2041.

Committee to reassess AGR dues

The filing also noted that a committee will be set up by the DoT to reassess the AGR dues. The decision of this committee will be final.

After the reassessment, the revised AGR amount will be repaid between March 2036 and March 2041 in equal annual instalments.
The update is likely to be closely tracked by investors, given the company’s stretched balance sheet and the importance of AGR relief for its long-term financial stability.