Vodafone Idea shares rise up to 8% as telco confirms AGR relief

Vodafone Idea shares rise up to 8% as telco confirms AGR relief

• Vodafone Idea shares rose up to 8% after DoT eased AGR payment schedule
• DoT capped Vodafone Idea's annual AGR payments at Rs 124 crore for six years
• Annual payments drop to Rs 100 crore from March 2032 to 2035

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Vodafone Idea shares climbed up to 8% on January 9 as the telco got relief from Department of Telecommunications in AGR matter.

DoT has directed Vodafone Idea to pay Rs 124 crore annually from March 2026-31.

The telco laid out a repayment schedule for its adjusted gross revenue (AGR) dues, capping annual payments at Rs 124 crore for the next six years, easing near-term cash flow pressure without reducing headline liabilities.

On December 31, the Indian government approved a partial moratorium on the telecoms company's dues, freezing Rs 87,695 crore in payments and deferring repayments to the 2030s. At the time, Vodafone Idea had said it had not received any communication about the measure.

At 9:45 am on January 9, Vodafone Idea shares were trading 3% higher at Rs 11.87 apiece after hitting an intraday high of Rs 12.52 apiece. The stock jumped 36% in 2025.

Meanwhile, shares of Indus Towers were trading 2% higher at Rs 439 apiece.

In its communication to Vodafone Idea, DoT directed the telco to pay Rs 100 crore annually from March 2032-35.

The telecom operator, in which the Indian government holds a 49% stake, said in a statement on Friday that after the initial six years, the annual payout will be capped at Rs 100 crore for the following four years through March 2035, with the remaining balance to be paid in equal annual installments over the subsequent six years.

The remaining AGR dues have to be paid in equal instalments annually over six years from March 2036 to March 2041. For these balance dues, the regulator will set up a committee to reassess the AGR dues, and the decision will be final, according to an exchange filing. Thereafter, the reassessed amount is to be repaid between March 2036 to March 2041 in equal annual instalments, it said.

Telecom operators, including Vodafone Idea, have long contested the Indian government's method of calculating AGR, which determines the licence fees and other dues.