New Delhi: Vodafone Idea shares are back in focus after the debt-ridden telecom operator informed the Telecom Department that if the government doesn’t come ahead with a timely support on Adjusted Gross Revenue (AGR), the company will not be able to operate beyond FY26 as the bank funding discussions will not move forward.
Vodafone Idea has written a letter to the Telecom Department on April 17, 2025, requesting to intervene and make a strong case for a lifeline, saying if the support doesn’t come it will lead to a point of no return.
“Without GoI’s (Government of India) timely support on AGR, VIL will not be able to operate beyond FY26 as the bank funding discussions will not move forward,” VIL CEO Akshaya Moondra wrote in a letter to the DoT secretary.
Vodafone Idea shares gained 1.66 percent to settle at Rs 7.35 on May 17, 2025.
In a sigh of relief, the Supreme Court has agreed to hear a fresh petition filed by Vodafone Idea seeking waiver of around Rs 30,000 crore AGR dues. Senior lawyer Mukul Rohatgi, appearing for the telecom operator, led the arguments before a bench comprising Chief Justice B R Gavai and Justice Augustine George Masih, that the plea needed an urgent hearing. The top court bench is expected to hear the plea on May 19.
In its letter to the DoT department, Vodafone Idea stated that without debt disbursement from banks, the investments it planned will not take place.
“Resultantly, operational performance improvement will be stalled. More importantly, the funds raised by the company will be utilised soon and the entire capex cycle will come to a halt. In such a case, the entire fundraising done over the last 12 months and investment done so far by the company, as also the equity stake of the government including the recent conversion, will lose value,” VIL said.
“In such a scenario, the network as well as spectrum assets will lose value with the service being disrupted even for a short period,” the telco said.
Vodafone Idea cautioned the government that it will lose about 200 million users as they will port out, in such a case. “Timely support will primarily benefit the general public and Indian economy at large,” it said.
VIL stated that without Centre’s support, company’s EBITDA will decline going forward if it loses subscribers and the company will default on making the payment to the government for AGR instalment in March’26 itself.
In April 2025, the government raised its stake in Vodafone Idea to 48.99 percent from 22.60 percent by converting a part of the spectrum payment dues into equity shares worth Rs 36,950 crore.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds and crypto assets.)
Vodafone Idea (VIL) faces potential shutdown by FY26 without government AGR support. The company’s letter to the Telecom Department highlights the urgent need for intervention to secure bank funding and prevent service disruptions. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
