Tata Sons Ltd, the holding company of the Tata Group, may inject fresh capital into Tata Teleservices Ltd (TTSL) as the company’s AGR and related statutory dues have risen to ₹19,256 crore as of March 2025. These dues are payable by March 2026.
As of 10:30 AM on May 22, 2025, Tata Teleservices Ltd (TTSL) share price was trading at ₹75.30, a 8.99% increase, with a 13.65% increase over the past 6 months and a 0.99% drop over the past year.
TTSL has a negative net worth of ₹17,876 crore. The company has steep accumulated losses and limited capacity to meet its obligations on its own. According to the news reports, these liabilities are recorded as deferred payment obligations under borrowings in the financials as of March 31, 2024.
The total dues of ₹19,256 crore include ₹14,463 crore under TTSL and ₹3,367 crore under Tata Teleservices Maharashtra Ltd (TTML). In FY24, the dues stood at ₹17,830 crore. Tata Sons had previously infused ₹46,595 crore into TTSL till June 2019 and continues to provide support via a letter of comfort.
On May 20, 2025, the Supreme Court dismissed petitions filed by Vodafone Idea, Bharti Airtel, and TTSL seeking a waiver on interest, penalty, and interest on penalty on their AGR dues. The court termed the petitions “misconceived” and left room for any future relief to come only through government intervention.
Read more: Tata Sons Probe Finds Code Violation But No Personal Gain
TTSL reported a net loss of ₹994 crore in FY25, with revenues of ₹3,626 crore. In Q4 FY25, losses narrowed to ₹306.42 crore, while revenue declined to ₹308.27 crore from ₹323.29 crore in Q4 FY24. The company had previously exited its wireless mobility business, transferring it to Bharti Airtel. Tata Sons also assumed responsibility for outstanding loans and bought out NTT Docomo’s stake.
With dues increasing and no legal relief available, Tata Sons may have to extend financial support again as the AGR payment deadline approaches.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: May 22, 2025, 1:53 PM IST
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