Vodafone Idea: Stock reacts amid report of one-time settlement, ahead SC AGR hearing
Vodafone Idea shares were trading 3.4 per cent lower at Rs 8.53 apiece on BSE, after falling to a low of Rs 8.35 earlier today.
- Oct 6, 2025,
- Updated Oct 6, 2025 11:13 AM IST
Vodafone Idea Ltd on Monday pared intraday losses following a Bloomberg report, which quoting sources familiar with the matter, indicated that India is exploring a one-time settlement of its longstanding dues from Vodafone Group Plc’s struggling Indian unit, as the government aims to bolster ties with the UK.
As per the report, resolution in the nearly Rs 2 lakh crore ($22.5 billion) financial dispute may come through a waiver of interest and penalties, followed by a concession on the principal, said the people, who asked not to be identified as the discussions are private. Officials, the Bloomberg report suggested, are drafting the framework and also weighing steps to ensure any deal does not spark legal challenges from other telecom operators that owe dues, they said.
Vodafone Idea shares were trading 3.4 per cent lower at Rs 8.53 apiece on BSE, after falling to a low of Rs 8.35 earlier today. The British Prime Minister Keir Starmer would be in India this week, adding urgency to the effort, the Bloomberg report suggested.
The Vodafone Idea report came on a day the Supreme Court was scheduled to hear a plea of Vodafone Idea seeking the quashing of the additional adjusted gross revenue (AGR) demands for the period until 2016-17. The apex court had on September 26 deferred the hearing in the matter to October 6.
The government in April this year decided to convert Rs 36,950 crore of the company's spectrum payment dues into equity. The equity conversion was a part of the September 2021 Reforms and Support Package for the telecom sector.
For the June quarter, JM Financial expects Vodafone Idea's Ebitda to grow 1.1 per centQoQ, as ARPU is likely to improve 1.2 per cent QoQ to Rs 167 due to improved subscriber mix and 1 more day QoQ, though it could be partly offset by net subs loss of 5 alkh:
"VIL is expected to report net subs loss of 0.5mn in 2QFY26 (vs. net subs loss of 0.5mn in 1QFY26, 1.6mn in 4QFY25 and 1.5mn-5mn per quarter over the last few quarters) while adding ~1mn MBB subs (added 1mn MBB subs in 1QFY26), aided by its ongoing network expansion rollouts. However, its ARPU is likely to grow by 1.2% QoQ to INR 167 (vs. INR 165 in 1QFY26) due to upgrades and improved subs mix, and aided by 1 more day QoQ," JM Financial said.
This brokerage expects Vodafone Idea's revenue to grow 0.8 per cent QoQ to Rs 11,100 crore, reported Ebitda to be higher 1.1 per cent QoQ at Rs 4,660 crore and Pre-IND AS Ebitda (or cash Ebitda ) to be higher 0.9 per cent QoQ at Rs 2,200 crore in 2QFY26.
(More to come)
Vodafone Idea Ltd on Monday pared intraday losses following a Bloomberg report, which quoting sources familiar with the matter, indicated that India is exploring a one-time settlement of its longstanding dues from Vodafone Group Plc’s struggling Indian unit, as the government aims to bolster ties with the UK.
As per the report, resolution in the nearly Rs 2 lakh crore ($22.5 billion) financial dispute may come through a waiver of interest and penalties, followed by a concession on the principal, said the people, who asked not to be identified as the discussions are private. Officials, the Bloomberg report suggested, are drafting the framework and also weighing steps to ensure any deal does not spark legal challenges from other telecom operators that owe dues, they said.
Vodafone Idea shares were trading 3.4 per cent lower at Rs 8.53 apiece on BSE, after falling to a low of Rs 8.35 earlier today. The British Prime Minister Keir Starmer would be in India this week, adding urgency to the effort, the Bloomberg report suggested.
The Vodafone Idea report came on a day the Supreme Court was scheduled to hear a plea of Vodafone Idea seeking the quashing of the additional adjusted gross revenue (AGR) demands for the period until 2016-17. The apex court had on September 26 deferred the hearing in the matter to October 6.
The government in April this year decided to convert Rs 36,950 crore of the company's spectrum payment dues into equity. The equity conversion was a part of the September 2021 Reforms and Support Package for the telecom sector.
For the June quarter, JM Financial expects Vodafone Idea's Ebitda to grow 1.1 per centQoQ, as ARPU is likely to improve 1.2 per cent QoQ to Rs 167 due to improved subscriber mix and 1 more day QoQ, though it could be partly offset by net subs loss of 5 alkh:
"VIL is expected to report net subs loss of 0.5mn in 2QFY26 (vs. net subs loss of 0.5mn in 1QFY26, 1.6mn in 4QFY25 and 1.5mn-5mn per quarter over the last few quarters) while adding ~1mn MBB subs (added 1mn MBB subs in 1QFY26), aided by its ongoing network expansion rollouts. However, its ARPU is likely to grow by 1.2% QoQ to INR 167 (vs. INR 165 in 1QFY26) due to upgrades and improved subs mix, and aided by 1 more day QoQ," JM Financial said.
This brokerage expects Vodafone Idea's revenue to grow 0.8 per cent QoQ to Rs 11,100 crore, reported Ebitda to be higher 1.1 per cent QoQ at Rs 4,660 crore and Pre-IND AS Ebitda (or cash Ebitda ) to be higher 0.9 per cent QoQ at Rs 2,200 crore in 2QFY26.
(More to come)