Vodafone Idea (Vi) shares plunged sharply, dropping more than 9% in intra-day trade on Tuesday.
Vodafone Idea stock dropped 9.19%, further a year-to-date fall of over 16%. This came after Minister of State for Communications Pemmasani Chandra Sekhar reiterated that no further relief is on the anvil beyond what has so far been granted, as reported by several media outlets.
The minister cited that most of Vodafone Idea's debt has already been equitized. "The government has done everything possible and there is no deliberation or plan to change anything more than what has been done," he stated.
Any additional relief on the company's adjusted gross revenue (AGR) dues will involve a joint decision by the Union Cabinet, which will involve the Prime Minister's Office (PMO), the Finance Ministry, Telecom Minister Jyotiraditya Scindia, and the Department of Telecommunications (DoT), the minister said.
The news also impacted Indus Towers' shares, with investors offloading positions following the IT Ministry's clarification that there are no plans for any more relief to the company's AGR dues now. Indus Towers' shares fell 3.58% to Rs 342.05 in Tuesday's early trade, having been flat largely year-to-date, though it had fallen 11% over the last month.
Last week, reports said that the DoT had offered several relief plans to the PMO for the company's AGR dues. Choices reportedly included a fresh two-year payment moratorium, lower annual instalments, and waivers on interest and penalties. The minister replied when asked whether the PMO had got a DoT proposal regarding extending relief: "Not that we know of."
On the future of the company, the minister stated, "That is not for me to decide… All the companies are constantly making approaches for different reasons, they will also be constantly making approaches. But at this moment, the talks — there is nothing that we have planned."
Vodafone Idea had also asked for the Rs 17,213 crore principal (calculated up to FY19) to be accepted as final, with exemption of all interest and penalties on AGR dues.
Akshaya Moondra, the CEO of Vodafone Idea, informed analysts in an investor call last month that the company is completely geared to business investment. "Whatever cash is available with the company, the intent is not in attempting to do anything with the government holding. The intent will be in utilizing any funding and cash realization towards investments, which will yield the highest return for the business."
The telecom company is in talks with banks, where the lenders want clarification on the AGR situation. On the June quarter earnings call, Moondra informed that Vodafone Idea has asked for the government to settle the situation before the deadline of March so that banks can proceed with the financing.
In Q1 FY26 (June quarter 2025), Vodafone Idea posted a net loss of Rs 6,608 crore, an increase from Rs 6,432 crore in the corresponding quarter of the previous year. But the company's operational revenue rose 5% to Rs 11,023 crore, an increase from Rs 10,508 crore in Q1 FY25, as per its stock exchange filing.
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