- Vodafone Idea’s AGR dues fixed at Rs 64,046 crore until December 2025
- Citi issues buy call on Vodafone Idea with a target price of Rs 14
- AGR liability reduced by 20% from Rs 80,500 crore, easing company burden
Shares of Vodafone Idea will remain in focus on Monday, following the finalisation of its adjusted gross revenue dues at about Rs 64,000 crore, providing much-needed clarity on the long-pending liability for the stressed telco.
In view of the development, Citi has turned bullish on the stock, issuing a buy call with Rs 14 as the target price. This implies a potential upside of 37%, as against the current market price.
The brokerage, in a note, said the "AGR saga has finally concluded". The government's re-assessing of dues has reduced the liability to Rs 64,046 crore as of December 2025, which is about 20% lower than the outstanding amount of Rs 80,500 crore, it pointed out.
This, said Citi, meaningfully improves the economics of liability, thereby reducing burden on the company. The chapter of regulatory uncertainty is now largely behind, the brokerage added.
ALSO READ: DoT Fixes Vodafone Idea's AGR Dues At Rs 64,046 Crore; Payout Plan Finalised
Notably, the Department of Telecommunications has fixed the payout plan for the AGR dues. Vodafone Idea will begin repayments with a minimum annual payment of Rs 100 crore over a four-year period from FY32 to FY35. The remaining dues will then be cleared in six annual instalments from FY36 to FY41 which will be Rs 10,608 crore annually.
The AGR payment of Rs 124 crore will be done between March 2026 to March 2031. These are the dues for FY2018 and FY2019 and were not part of the reassessment.
This extended repayment framework offers the company a long runway to manage its obligations, easing near-term cash flow pressures while allowing it to focus on operational recovery and network investments.
Before the AGR re-assessment related announcement on Friday, shares of Vodafone Idea closed lower on the bourses. The scrip settled 1.07% down at Rs 10.18 apiece on the NSE, as compared to a 0.74% decline in the benchmark Nifty 50.
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