Vodafone Idea shares extend losses on AGR setback, Macquarie's 'underperform' call

Vodafone Idea shares extend losses on AGR setback, Macquarie's 'underperform' call

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Vodafone Idea shares extended losses for third straight day on August 28 after government ruled out extending any relief package to the struggling telecom operator and Macquarie gave an 'underperform' call.

The Department of Telecommunications (DoT) has no plans to offer additional concessions to Vodafone Idea beyond the relief measures already granted, according to Minister of State for Communications Chandra Sekhar Pemmasani. He noted that the government has already converted a substantial portion of the company’s dues into equity, and there are currently no discussions underway for further support.

Vodafone Idea continues to face significant challenges, including heavy debt, fierce competition from Reliance Jio and Bharti Airtel, and unresolved liabilities related to adjusted gross revenue (AGR). The government's position suggests that the telecom operator will need to rely on internal strategies, fundraising efforts, or partnerships to survive, rather than expecting further government intervention.

Vodafone Idea’s stock had surged last week following speculation that the company might receive some relief regarding its AGR dues.

Meanwhile, global brokerage Macquarie gave an 'underperform' call for Vodafone Idea with target price of Rs 5 per share.

At 11 am on August 28, Vodafone Idea shares were trading 2% lower at Rs 6.58 apiece.

Reliance Jio’s pivot to ‘value over volume’ drives a stronger EBITDA growth outlook relative to Bharti, said Macquarie.

Macquarie gave an 'outperform' call for Reliance with target price raised to Rs 1,650 per share.

Macquarie also said it remains positive on Bharti Airtel and gave an outperform call with target price of Rs 2,050 per share.

Capex intensity to moderate for both Jio and Bharti and Vodafone Idea’s spend requires external financing, the brokerage said.

Disclaimer: Moneycontrol is part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.