Post by : Badri Ariffin

Vodafone Idea (Vi) shares experienced an uptick in early trading on Tuesday, December 2, buoyed by reports indicating that the government is anticipating a formal appeal from the telecom giant to evaluate possible relief options. The stock surged by as much as 3.9% to reach ₹10.32 on the NSE, reflecting a revival of investor confidence amidst the company’s ongoing financial challenges.

Union Telecom Minister Jyotiraditya Scindia disclosed that the Department of Telecommunications will take action once Vi formally requests assistance. He pointed out the necessity to thoroughly assess the recent Supreme Court ruling to ensure compliance with legal standards. The report indicates that a governmental review may be finalized in the next few weeks, with suggestions expected by the end of the year.

The positive sentiment follows a significant event in November 2025, when the Supreme Court ruled that the Centre is not limited to appraising only the telecom provider’s adjusted gross revenue (AGR) obligations for the financial year 2016–17. The court recognized that Vodafone Idea was seeking relief not solely for additional AGR requirements but also for a re-evaluation of all pertinent dues.

Currently, Vodafone Idea is confronted with outstanding AGR obligations of around ₹9,450 crore, while the cumulative demand has exceeded ₹83,500 crore as of March 2025. With this clarification, the government has the opportunity to reassess the overarching dues structure, representing a significant change from previous restrictions.

The positive reaction extended beyond Vi, with shares of Indus Towers, a key infrastructure ally of Vodafone Idea, rising by over 1% to ₹401.20. Given that Vi rents numerous towers from Indus to sustain its network, any enhancement in Vi’s financial standing directly affects tower-leasing stability and revenue outlook for Indus.

As the government readies to evaluate the scenario and the company signals its intention to put forth its proposal, the market appears cautiously optimistic. Investors are keenly awaiting the final details of the possible relief package, which could be pivotal for Vodafone Idea’s long-standing restructuring efforts.

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