Shares of Vodafone Idea declined as much as 15% in intraday trade on Wednesday as investors booked profits at higher levels after the telecom stock hit a 52-week high earlier in the session. Shares of the debt-laden telecom operator have risen over 27% in the past three months amid hopes of relief on adjusted gross revenue (AGR) dues, which were finally approved by the Union Cabinet today.

Ending a two-session gaining streak, Vodafone Idea shares closed 10.85% lower at ₹10.76 on the BSE, with a market capitalisation of ₹1.16 lakh crore. Earlier in the day, the stock opened marginally higher at ₹12.14 against the previous close of ₹12.07 and gained as much as 6% to hit a 52-week high of ₹12.80 in intraday trade.

Rebounding from the day’s high, Vodafone Idea shares dropped as much as 19.84% to a day’s low of ₹10.26 before settling at ₹10.76. At current levels, the stock is up 76% from its 52-week low of ₹6.12, touched on August 14, 2025. The stock has delivered a positive return of 45% over the past six months and 33% in calendar year 2025.

Cabinet approves AGR relief package

In a major boost to the cash-strapped company, the Union Cabinet has reportedly approved an AGR dues package amounting to ₹87,695 crore payable by the telecom major, which is said to include a five-year moratorium on AGR payments.

As part of the decision, the Cabinet has frozen Vodafone Idea’s AGR dues of ₹87,695 crore as of December 31, 2025. The telecom company will now be allowed to repay this amount in instalments from FY 2031–32 to FY 2040–41. The decision is being viewed as a major relief for the struggling telecom operator. The Cabinet has cited public interest, noting the need to avoid excessive concentration in the telecom sector, which serves over 20 crore consumers, according to reports.

In a key development, the Supreme Court, in its October 2025 ruling, allowed the government to re-evaluate and reconcile AGR dues up to FY2016–17. This move could provide significant relief to Vi by potentially reducing its overall AGR burden, which exceeds ₹2 lakh crore. Notably, the Indian government is Vi’s single largest shareholder, having raised its stake from 22% to 48.99% in April this year by converting spectrum payment dues into equity.

Adding to investor confidence, Vodafone Idea last week announced a fundraise of ₹3,300 crore through the issuance of non-convertible debentures (NCDs) by its subsidiary, Vodafone Idea Telecom Infrastructure Limited (VITIL). The issue garnered strong interest from a diverse set of investors, including large non-banking financial companies, foreign portfolio investors, and alternative investment funds, according to an exchange filing.

The proceeds from the NCD issuance will be used by VITIL to meet its payment obligations to Vodafone Idea, helping ease near-term financial pressures. This would also enable Vi to bolster its capex and support business growth.

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