Vodafone Idea's (Vi) share price experienced a rally of over 4% in early trading on Wednesday, December 3, 2025, even as the broader Indian stock market faced a sell-off. This surge marks the second consecutive session of gains for the telecom stock, which rose as high as ₹10.57 apiece on the BSE. In contrast, the Sensex slipped 427 points, or 0.49%.
The positive movement in Vodafone Idea's share price is attributed to growing anticipation that the Union Government is nearing a final decision on the telecom company's proposal for relief related to adjusted gross revenue (AGR) dues. Union Telecom Minister Jyotiraditya Scindia indicated that the Centre is awaiting a formal request from Vodafone Idea before proceeding with any relief measures. In an interview with CNBC-TV18, Scindia mentioned that the ministry is carefully examining the legal parameters set by the Supreme Court in its verdict last month. He emphasized the importance of adhering to the Supreme Court's judgment in any potential course of action.
Last month, the Supreme Court granted the government permission to comprehensively reassess and reconcile all of Vodafone Idea's AGR dues, including interest and penalties, up to FY17. In September, Vodafone Idea requested a waiver of penalty and interest on an AGR demand of ₹9,450 crore raised by the DoT, arguing that a significant portion pertains to the pre-FY17 period already settled by the apex court in 2020.
Vodafone Idea's overall AGR dues stand at ₹83,400 crore, with annual payments of ₹18,000 crore due from March. Including penalties and interest, its total liabilities to the government are estimated at approximately ₹2 lakh crore. The telecom company has previously stated that its current cash flows are insufficient to meet these obligations.
Analysts are closely monitoring the situation, with some suggesting that a breakout above ₹10.70 could propel Vodafone Idea shares towards a target of ₹12. The government's final stance on AGR relief is expected to be influenced by the Supreme Court's order.
The recent market activity follows a period of volatility for Vodafone Idea's stock. On August 26, 2025, the company's shares slipped nearly 9% after the government clarified that no new relief package on AGR dues was under discussion.
Despite these challenges, Vodafone Idea continues to operate as one of the leading telecom service providers in India, offering mobility and long-distance services, as well as trading in handsets and data cards. The company's services include voice, broadband, content, and enterprise solutions.
However, Vodafone Idea faces several challenges, including a low-interest coverage ratio and a decline in promoter holding over the past three years. The company has also delivered a poor sales growth of -0.62% over the past five years.
Market analysts have varying opinions on Vodafone Idea's stock. According to Wall Street analysts, the average 1-year price target for IDEA is ₹9.07, with a low forecast of ₹2.42 and a high forecast of ₹15.75. Technical indicators suggest a neutral position based on daily analysis, while moving averages indicate a strong buy outlook.
