Vodafone Idea stock dips over 4% after clarification on AGR dues waiver

The stock opened nearly flat at Rs 9.94 on the BSE, compared to its previous close of Rs 9.95 on Monday. However, it dipped to an intraday low of Rs 9.51, translating into a fall of over 4 per cent. This comes after the stock surged up to 10 per cent on Monday amid reports suggesting a potential AGR dues waiver by the government.

Company clarification on AGR dues

On January 20, post-market hours, Vodafone Idea issued a clarification in response to media reports about a possible government waiver of adjusted gross revenue (AGR) dues. The company stated, “We have not received any communication from the government in relation to the above-reported matter. As and when there is any development requiring disclosure, we will do the needful.”

The exchange had sought clarification from the company regarding the media reports that triggered sharp price movements on Monday, January 20.

AGR revenue and industry growth

Adjusted gross revenue (AGR) represents the revenue telecom operators earn from core services, which is used by the government to calculate levies. According to a TRAI report, telecom operators’ gross revenue rose 10.5 per cent year-on-year to Rs 91,426 crore during the July–September 2024 quarter, supported by tariff hikes. Vodafone Idea's AGR during this period increased by 4.39 per cent, from Rs 7,507.65 crore to Rs 7,836.98 crore.

Market outlook

Despite Monday's sharp rally fueled by speculation, Tuesday's decline indicates cautious investor sentiment amid the lack of confirmation from the government regarding AGR dues relief. Analysts suggest that Vodafone Idea's financial struggles and reliance on government support may keep its stock highly sensitive to regulatory developments.

Investors will closely watch for updates on the AGR dues waiver and its implications for Vodafone Idea’s long-term financial health.