Vi rises on AGR relief hope, awaits funding

Brokerages have mixed views on telco’s operational performance

- RAM PRASAD SAHU

The stock of telecommunications service provider (TSP) Vodafone Idea (Vi) has risen about 19 per cent to 10.37 since the start of November.

The gains were largely driven by the Supreme Court (SC) judgment allowing the central government to review and reassess Vi's adjusted gross revenue (AGR) dues up to 2016-17, including interest and penalties.

This development is positive forthe company, which is in discussions with the Department of Telecommunications (DoT) to resolve issues related to AGR liabilities. Other positives include stability in its subscriber base, an improvement in average revenue per user (Arpu) in the July-September quarter (Q2) of 2025-26 (FY26), and the funding of the remaining FY26 capital expenditure (capex) through internal accruals.

However, for the stock to sustain gains from these levels, Vi will need to improve its operational metrics, raise debt to fund capex requirements in 2026-27 (FY27) and beyond, and secure resolution of the AGR issue. Most brokerages remain on the sidelines, awaiting progress on these fronts before turning constructive on TSP.