Vodafone Idea shares rally over 10% in 2 days amid AGR relief buzz

Shares of Vodafone Idea extended their rebound on Monday, rising as much as 2.3% to Rs 7.23 on BSE after an 8% surge on Friday. The two-day rally of 10.2% follows reports that the Prime Minister’s Office is reviewing a relief package for the debt-laden telecom operator, rekindling hopes of support on its massive adjusted gross revenue (AGR) dues.

On Friday, Vodafone Idea shares jumped 9.3% intraday to Rs 7.17 before closing 7.8% higher at Rs 7.07, after reports that the Department of Telecommunications had informally shared proposed bailout measures with the PMO. These include a two-year extension of the moratorium on statutory dues, more repayment flexibility, reduced annual installments, and possible waivers on penalties and interest, according to Moneycontrol.

Vodafone Idea owes about Rs 83,400 crore in AGR dues, with annual commitments of roughly Rs 18,000 crore starting March 2025. Total government liabilities, including penalties and interest, are pegged at nearly Rs 2 trillion.

Technical picture mixed

Despite the recent bounce, Voda Idea shares remain under pressure, down 10% in 2025 and more than 54% lower over the past 12 months. From a technical perspective, the stock is trading above six of its eight key simple moving averages, indicating short-term strength, but remains below its 150-day and 200-day averages, underscoring longer-term weakness.

The Relative Strength Index stands at 54.9, suggesting the stock is neither overbought nor oversold, while the Moving Average Convergence Divergence remains below the center line at -0.1, a bearish signal.

Mounting financial strain

The company’s precarious financial health has been a recurring concern. During the company’s June-quarter earnings call on August 18, Chief Executive Officer Akshaya Moondra said the operator continues to seek alternative funding options for capital expenditure, noting that traditional banking channels remain largely closed due to uncertainty over AGR dues.

The PMO’s decision on the proposed relief framework is seen as pivotal for the company’s survival in India’s fiercely competitive telecom market.

Also read | Vodafone Idea Q1 Results: Cons loss widens YoY to Rs 6,608 crore, revenue up 5%; ARPU at Rs 177

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