Citi reiterated its “BUY” rating on Vodafone Idea following the Supreme Court’s recent order, which permits reassessment of the telecom operator’s AGR dues. The brokerage noted that the development provides the government with a legal framework to potentially extend financial relief by enabling a full-scale review of the dues.
Vodafone Idea’s total AGR liability stood at over Rs 83,500 crore as of March 2025, including Rs 9,450 crore in additional dues.
According to Citi, this clarification from the apex court marks a significant development, as it allows the Centre to now revisit and reconcile all pending AGR dues, not just those from FY2016–17.
This came after Vodafone Idea’s legal counsel filed a petition seeking corrections to the Supreme Court’s earlier limited-scope order dated October 27. The company had challenged fresh AGR-related demands raised by the Department of Telecommunications (DoT), contending that these were unsustainable as liabilities had already been crystallised in the 2019 verdict.
The new court order now opens the door for a broader reassessment.Another brokerage firm, JM Financial, maintained its “ADD” rating on the stock and raised its target price to Rs 11 (from Rs 9.5), factoring in an estimated Rs 16,000 crore government relief.The brokerage stated, “We have raised our TP to INR 11 (from INR 9.5) assuming ~INR 160bn relief from the government in relation to VIL’s AGR dues.” JM Financial also highlighted that Vodafone Idea’s Q2FY26 performance was largely in line, with a net subscriber loss of 1 million, a slight improvement in ARPU, and delays in 5G rollout amid pending fund infusion.
Meanwhile, Choice Broking presented a bullish technical outlook. Analyst Hardik Matalia noted, “IDEA is currently trading around Rs 10.38 and has recently witnessed a strong upmove from its lower levels… IDEA is also forming a Round Bottom pattern and is currently trading near its breakout zone, which highlights growing strength in the trend.” He added that if the stock sustains above Rs 11, it could confirm a breakout and continue its bullish trajectory.
Technically, the stock is trading above key moving averages, with sustained momentum and an RSI of 65.87. For short-term traders, Matalia recommends a “buy on dips” approach as long as the stock holds above Rs 9 and suggests fresh buying on a confirmed breakout above Rs 11.
He further noted that long-term investors may consider “partial accumulation at current levels, with scope for adding more on dips as long as the broader uptrend remains intact.”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)