Vodafone Idea shares give up intraday gains to end lower after AGR update

Shares of Vodafone Idea Ltd jumped sharply in Friday's session, rising 8.78 per cent to an intraday high of Rs 12.51 after the telecom company announced an update on its adjusted gross revenue (AGR) dues. However, the stock failed to hold on to the gains and eventually gave up the entire rise to close 1.74 per cent lower at Rs 11.30. Trading activity remained robust, with about 19.22 crore shares changing hands during the day, well above the two-week average volume of 10.36 crore shares.

In an exchange filing, the company said it has received a communication from the Department of Telecommunications (DoT) outlining relief in the long-pending AGR matter. According to Vodafone Idea, the AGR dues -- including principal, interest, penalty and interest on penalty for the period from FY2006-07 to FY2018-19 -- will be frozen as of December 31, 2025, and repaid in a staggered manner over several years.

The telco stated that it will pay a maximum of Rs 124 crore annually over six years from March 2026 to March 2031, followed by annual payments of Rs 100 crore for four years from March 2032 to March 2035. The remaining AGR dues will then be paid in equal annual instalments over six years between March 2036 and March 2041.

Vodafone Idea also said that a committee will be constituted by the DoT to reassess the AGR dues, adding that the committee's decision will be final. The reassessed amount, once determined, will be repaid in equal annual instalments between March 2036 and March 2041.

Separately, the company reiterated that it is set to receive around Rs 5,836 crore from UK-based Vodafone Group as part of a re-settlement of a liability claim agreement between the two entities. Under the revised agreement, Vodafone Group promoters will release Rs 2,307 crore over the next 12 months to Vodafone Idea. The group has also set aside its 328 crore shares held in the company for Vodafone Idea’s benefit.

The liability settlement is linked to the Contingent Liability Adjustment Mechanism (CLAM), which was established at the time of the 2017 merger between Vodafone India and Idea Cellular to address pre-merger contingent liabilities related to legal, regulatory, tax and other matters. Vodafone Group’s maximum exposure under CLAM was initially capped at Rs 8,369 crore. After payouts made so far, the remaining exposure has reduced to Rs 6,394 crore.

Vodafone Idea was formed in 2018 following the merger of Vodafone Group's India operations with Idea Cellular. As of September 2025, the promoters held a 25.57 per cent stake in the company.