Vodafone Idea Shares Under Pressure As Cabinet Relief Falls Below Street Expectations

In a major development for Vodafone Idea, the telecom company has been granted relief after the Cabinet granted a five-year interest-free moratorium on its over Rs 87,000 crore plus pending statutory dues linked to adjusted gross revenue, sources have told NDTV Profit.

As part of the package, the government will freeze Vodafone Idea's AGR dues without any interest until FY32.

The approval was granted after a Cabinet meeting on Wednesday, serving as a much-needed relief for a cash-strapped Vodafone Idea.

Shares of Vodafone Idea, after reaching a 52-week high earlier, have fallen as much as 15%. The stock is currently trading at Rs 10.26, compared to Tuesday's closing price of 12.11.

It must be noted that Cabinet's relief for Vodafone Idea does not include any waiver on its over Rs 87,000 AGR dues, meaning the company would still have to pay the pending dues but now has until FY32 before the debt starts accruing interest.

This comes against the backdrop of the street expecting an AGR waiver of at least 50%, which could have had major positive implications on Vodafone Idea's long-term prospects.

However, sources have told NDTV Profit that the Department of Telecommunications is likely to form a committee to look into reassessment of AGR dues, in about six to eight months.

Vodafone Idea's total AGR dues as per Dec. 31, 2025, stands at Rs. 87,695 crore, as per government sources. The Government of India continues to hold 49% stake in the cash-strapped telecom company, which has over 20 crore customers.

Out of 22 analysts tracking the company, five maintain a 'buy' rating, seven recommend a 'hold,' and ten suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target is Rs 8.96.