Vodafone Idea (Vi) has received a major relief from the government regarding its long-pending Adjusted Gross Revenue (AGR) dues. The telecom operator, which has been struggling under heavy debt and financial stress, has now finalised a revised AGR payment schedule. The move eases immediate cash flow pressure and has positively impacted the company’s stock performance.
Vodafone Idea has clarified that a new payment schedule has been fixed for its legacy AGR dues. The decision comes at a crucial time as the company is working to stabilise its operations, retain subscribers, and improve network quality amid intense competition in the telecom sector.
The AGR issue has been a long-standing challenge for the company and has significantly weakened its financial position over the years.
According to Vodafone Idea, AGR dues related to the period from FY 2006–07 to FY 2018–19 will not increase after December 31, 2025. This means the payable AGR amount will be frozen after this date, preventing any further escalation.
Under the revised plan, Vodafone Idea will pay ₹124 crore per year from March 2026 to March 2031, covering a period of six years.
After the initial six-year period, the annual payment obligation will reduce further:
From March 2032 to March 2035, Vodafone Idea will pay ₹100 crore per year
The remaining AGR dues will be paid between March 2036 and March 2041 in six equal annual instalments
This extended timeline gives the company significant breathing space to manage cash flows more efficiently.
Additionally, Vodafone Idea stated that the Department of Telecommunications (DoT) will constitute a committee to re-examine AGR dues. The committee’s decision will be considered final, raising hopes of potential relief on certain disputed components.
AGR refers to the revenue on which telecom companies pay licence fees and spectrum usage charges to the government. It includes:
Revenue from telecom services, and
Non-telecom income such as interest, rent, and asset sales
Disputes over the definition of AGR in the past resulted in massive retrospective dues for telecom operators, including Vodafone Idea.
Vodafone Idea has been facing financial difficulties for several years due to:
Intense price competition in the telecom market
Massive AGR liabilities
High debt levels
Continuous losses and subscriber erosion
While rivals rapidly expanded their 4G and 5G networks, Vodafone Idea struggled to invest adequately in network upgrades due to limited funds.
The announcement had a positive impact on Vodafone Idea’s stock. The shares rose 2.70%, trading at ₹11.81 around 9:00 am.
During the session:
Intraday low: ₹11.70
Intraday high: ₹12.52
Previous close: ₹11.50
Opening price: ₹12.20
Over the past 52 weeks, the stock has traded between:
Low: ₹6.12
High: ₹12.80
Trading activity was strong, with approximately 82.36 crore shares exchanged and a total traded value of around ₹973 crore.