Vodafone Idea Share Price Falls Over 7% as DoT Rules Out AGR Relief

The Department of Telecommunications (DoT) has firmly stated that it is not considering any further adjusted gross revenue (AGR) relief for Vodafone Idea, despite the government becoming the company’s largest shareholder through a debt-to-equity conversion of ₹36,950 crore. This announcement clarifies the state’s stance amid the telco’s financial struggles and legal obligations.

Government Declines Further AGR Support for Vodafone Idea

Minister of State for Communications Chandra Sekhar Pemmasani confirmed there are no ongoing discussions about additional AGR relief for Vodafone Idea. The company, which owes nearly ₹75,000 crore in AGR dues as of June 2025, is expected to begin repayment in 6 equal annual instalments from March 31, 2026. 

Despite having already taken significant measures, including converting massive debts into equity and acquiring a 33% stake in 2023 for over ₹16,000 crore, the DoT believes its support has reached its limit.

Debt-to-Equity Move Makes Government Majority Stakeholder

The government’s latest move of converting ₹36,950 crore spectrum dues into equity has made it the single largest shareholder in Vodafone Idea. However, officials maintain that this financial restructuring should not be interpreted as a pathway to further relief. Pemmasani noted that the government has fulfilled its part, and any new support is not under consideration at this point.

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AGR Dues Stem from Supreme Court’s 2019 Ruling

The telecom crisis dates back to the Supreme Court’s October 2019 verdict affirming the DoT's definition of AGR. Vodafone Idea and other telcos, including Bharti Airtel and BSNL, contested the expanded definition but lost the case, resulting in massive liabilities. The ruling obligated telcos to pay dues in structured instalments after a government-imposed moratorium period lapses in 2026.

Spectrum Allocation for Satcom Under Discussion

In parallel, the DoT is discussing pricing norms for allocating satellite communication (satcom) spectrum to companies like Starlink and Eutelsat OneWeb. While discussions continue, the minister ruled out allowing these firms to host Indian data offshore or provide foreign services via Indian gateways.

Vodafone Idea Share Price Performance

On August 26, 2025, Vodafone Idea share price opened at ₹7.10 on NSE, below the previous close of ₹7.40. During the day, it surged to ₹7.13 and dipped to ₹6.82. The stock is trading at ₹6.83 as of 9:41 AM. The stock registered a significant decline of 7.70%.

Over the past week, it has moved up by 0.59%, over the past month, it has declined by 4.21%, and over the past 3 months, it has declined by 1.44%.

Conclusion

Vodafone Idea’s financial future remains uncertain as the DoT clearly distances itself from providing any new AGR relief. Despite strategic debt conversions and government shareholding, the company must adhere to the Supreme Court-directed payment schedule starting 2026. While spectrum policy for future technologies progresses, Vodafone Idea must prepare to meet its existing obligations independently.

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