Shares of Vodafone Idea rose 1.64 per cent to ₹11.79 on Friday afternoon, extending recovery from recent sharp sell-offs even as analysts remain cautious about the telecom operator’s financial health despite government relief measures. The stock touched its 52-week high of ₹12.80 on December 31, 2025.
The Union Cabinet recently approved a relief package to freeze the company’s AGR (Adjusted Gross Revenue) contributions worth ₹87,695 crore, deferring repayment to FY32-41 through a five-year interest-free moratorium. However, contrary to market expectations of at least a 50 percent waiver, no capital discount was provided for the outstanding AGR liabilities.
Emkay Global maintained its Sell rating with a price target of ₹6, noting that the company’s leverage remains extremely high. The brokerage highlighted that Vodafone Idea’s pre-IndAS116 annualized EBITDA was just ₹8.98 billion. Management has forecast capex of ₹75-80 billion for FY26.
The company faces additional pressure from deferred spectrum payment obligations worth ₹1.2 trillion planned between FY26 and FY44. Emkay analysts said current EBITDA is insufficient to meet capex or spectrum debt repayment needs and further capital infusion will be critical for long-term sustainability.
Axis Capital also maintained the ‘Reduce’ rating with a target of ₹9.45, while SBI Securities described the situation as ‘neutral in the near term’. The telecom ministry will form a committee within 6-8 months to reassess the AGR charges and possibly provide scope for liability reduction.
Trading volume was high with 11,854 lakh shares changing hands even though the delivery rate was just 20.97 percent, indicating significant speculative interest.
Published on January 2, 2026