Shares of Vodafone Idea surged more than 7% intraday on Monday, May 4, as brokerages turned bullish on the telecom stock after the debt-ridden company received clarity on its long-standing adjusted gross revenue (AGR) dues last week. The Department of Telecom (DoT) finalised its adjusted gross revenue dues at about Rs 64,000 crore on Thursday, April 30, 2026 late evening, providing the much-needed clarity on the long-pending liability for the stressed telcom operator.
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, according to Vodafone's stock exchange filing.
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. Following the developement,
Brokerages Bullish on Vodafine Idea: Should You Buy?
In view of the development, global brokerage 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 its recent 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.
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