Vodafone Idea Share Price Falls 4% Amid AGR Dues Waiver Speculation

Mumbai, January 20, 2025: Share price of Vodafone Idea falls nearly 4 percent in morning trade on Tuesday amid clarification on its reported waiver of adjusted gross revenue (AGR) dues. Its shares, which started nearly flat at ₹9.94 on Bombay Stock Exchange, skidded down to an intra-day low at ₹9.55.

The decline followed as Vodafone Idea issued a statement addressing media reports that claimed the government was looking to waive more than ₹1 lakh crore in AGR dues that these telecom operators owe. In a statement issued late Monday, the company clarified, “We have not received any communication from the Government in relation to the above-reported matter. As and when there is any development requiring disclosure, we will act accordingly.”

Vodafone Idea shares had, on Monday seen a sharp rally, rising to as much as 10% during the day and settling over 9% higher, driven by speculation that the government was planning a waiver of its AGR dues for the telecom companies that could provide them with much-needed relief.

AGR, or adjusted gross revenue, refers to the revenue generated by telecom operators from their core services. The government uses this metric to calculate levies and fees.

Revenue Growth in Telecom Sector

The Telecom Regulatory Authority of India reported a significant growth in the sector’s revenue for the July-September 2024 quarter. Gross revenue for telecom operators grew to ₹91,426 crore, with a year-over-year growth of 10.5%, primarily due to tariff hikes. Adjusted gross revenue also increased by 13.11% year-over-year to ₹75,310 crore.

For Vodafone Idea, AGR went up 4.39% during the same period, which was, on a standalone basis, ₹7,507.65 crore during the quarter that has now come up at ₹7,836.98 crore.

Clarification Sought by Exchange

The BSE sought clarification from Vodafone Idea on January 20, 2025, about the media reports citing statements of various political leaders indicating waiver of the AGR dues. The company had then replied that no official communication had been received from the government in the regard.

Analysts say that, despite the recent decline, the performance of Vodafone Idea would continue to be driven by news related to relief from the government and tariff increases. The AGR dues waiver would go a long way in lightening the burden on the company, which is burdened with high debt and liquidity issues.

As of now, investors remain quite cautious with expectation for clarity over the government’s views and what will happen to the sector.