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Vodafone Idea Gets Lifeline Through AGR Relief

ICICIdirect Research 09 Jan 2026 DISCLAIMER

The government, through the Department of Telecommunications (DoT), has restructured Vodafone Idea’s Adjusted Gross Revenue (AGR) dues amounting to ₹87,695 crore. Under the revised framework, instead of annual instalments of around ₹16,000 crore starting March 2026, the company will pay ₹124 crore per year from FY26 to FY31, followed by ₹100 crore per year during FY32 to FY35. The balance AGR dues will be paid in equal annual instalments over six years from FY36 to FY41. In addition, the DoT will constitute a committee to reassess Vodafone Idea’s AGR liabilities, with its decision being final.
The move reflects the government’s intent to support Vodafone Idea, in which it holds a 49% stake, and to preserve a 3+1 market structure in the telecom sector. The restructuring eases near-term cash flow pressure and, in our view, the immediate survival risk for Vi has now receded, and the move should enhance its ability to raise additional borrowings for network investments.
With survival now reasonably assured, the company also has room to explore potential fresh investors, including strategic investors, which could eventually pave the way for a government exit, which at current levels, may fetch close to ₹60,000 crore.
Going forward, the key monitorable will be the extent of relief arising from the AGR reassessment, industry-wide tariff hikes, and any progress on the induction of strategic investors

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