Vodafone Idea share price surges 9% after DoT freezes AGR dues, lays out repayment timeline

Vodafone Idea share price: Shares of beleaguered telecom company Vodafone Idea surged 9% in early trade on Friday, January 9, following the release of the timeline to repay its telecom dues.

The company, in an exchange filing today, said that it has received a communication from the Department of Telecommunications (DoT), providing relief in the adjusted gross revenue (AGR) dues matter.

Vodafone Idea share price jumped 8.7% to the day's high of ₹12.51 as against the last closing price of ₹11.50 following this announcement.

Vodafone Idea AGR repayment timeline

Vodafone Idea said that DoT has frozen the company’s AGR dues as of the end of December for a period of six years.

The freeze covers the principal amount, interest, and penalties. As of December-end, Vodafone Idea’s AGR dues stood at ₹87,695 crore.

Following the freeze, the company’s annual AGR payment obligation over the six years from March 2026 to March 2031 will be ₹744 crore, translating to a maximum of ₹124 crore per year.

In a stock exchange filing, Vodafone Idea said it will also be required to pay ₹100 crore annually for four years, from March 2032 to March 2035. “The remaining AGR dues will be paid in equal annual instalments over six years, from March 2036 to March 2041,” the company added.

Vodafone Idea also added that a committee is to be constituted by DoT to reassess the AGR dues, whose decision shall be final. Thereafter, the reassessed amount is to be repaid between March 2036 to March 2041 in equal annual instalments.

The communication from Vodafone Idea comes after the Cabinet on December 31 provided a breather to the telecom operator, which involved freezing its ₹87,695 crore AGR dues till the FY19 period as of December end. The government had approved the payment plan for the company to clear its frozen AGR dues between FY32 and FY41, several reports had stated.

Vodafone Idea share price trend

In the last six months, Vodafone Idea shares have surged sharply, rising 64%, led by growing optimism around a potential AGR dues resolution, a critical piece in the puzzle for Vi’s long-term financial sustainability.

Additionally, the company’s P&L metrics are showing early signs of stabilisation, with losses narrowing due to marginal yet consistent operational improvements. ARPU has also risen meaningfully to ~ ₹180 from ~ ₹166 in the recent quarter, signalling better monetisation and improved customer mix.

Meanwhile, in a year, the large-cap stock has jumped 50%, according to BSE data.

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