Shares of Vodafone Idea were in focus after the company said its adjusted gross revenue (AGR) dues for FY07–FY19 will remain frozen from December 31, 2025, with repayments stretched in staggered instalments until 2041, providing long-awaited cash-flow relief to the debt-laden telco.

The stock reacted positively in early trade, hitting an intraday high of Rs 12.40, up nearly 8%, before paring gains. At the time of reporting, Vodafone Idea was trading around Rs 11.5–12 levels, compared with a 52-week range of Rs 6.12–12.80, with volumes significantly higher than the recent average, reflecting renewed trading interest on the regulatory development.

Under the repayment structure outlined in the exchange filing, Vodafone Idea will pay Rs 124 crore annually from FY26 to FY31, followed by Rs 100 crore per year between FY32 and FY35, with the remaining AGR liability to be settled in equal instalments from FY36 to FY41. Crucially, the Department of Telecommunications will set up a committee to reassess the final AGR liability, with its decision to be binding. The freezing of dues until end-2025 and the long repayment runway materially eases near-term balance sheet stress, improves visibility on statutory outflows and reduces the risk of disruptive cash demands in the medium term.

The relief comes at a critical juncture for Vodafone Idea, which has been battling persistent losses, subscriber erosion and limited ability to invest aggressively in network expansion amid intense competition from larger peers. The AGR overhang, arising from the inclusion of non-telecom revenues in the levy base, has been a key structural drag on the company’s financials for several years. Analysts view the staggered payment plan as supportive not just for Vodafone Idea but also for broader sector stability, as it preserves competition and protects the interests of nearly 20 crore subscribers dependent on the operator’s services.

From a market perspective, the development reduces regulatory uncertainty and improves survivability.