Vodafone Idea: AGR Dues Resolution Looms! ICICI Securities Raises Target Price to ₹10 - What's Next?

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Updated on 13 Nov 2025, 07:34 am

ICICI Securities' latest research report indicates a probable resolution for Vodafone Idea's long-standing Adjusted Gross Revenue (AGR) dues. This development follows a recent Supreme Court order that permits the government to reassess and reconcile all AGR dues, including interest and penalties up to fiscal year 2017. Vodafone Idea is currently in discussions with the Department of Telecommunications (DOT) regarding the next steps for resolving these liabilities. A successful resolution is anticipated to open avenues for funding, which could enable Vodafone Idea to expand its network coverage and capacity, thereby capturing a larger market share. In parallel, the company plans to proceed with its existing capital expenditure (capex) plan of INR 75-80 billion for FY26, funded through internal accruals. ICICI Securities has reduced its EBITDA estimates for FY26 and FY27 by 1-2% but raised the target price (TP) for Vodafone Idea to INR 10 from INR 7. This revision is based on rolling over the valuation to FY28E and increasing the Enterprise Value to EBITDA (EV/EBITDA) multiple to 16x from 15.5x. The brokerage maintains a 'HOLD' recommendation on the stock. **Impact** This news is significant for Vodafone Idea as it addresses a major overhang related to AGR dues, potentially improving its financial outlook and facilitating access to crucial funding for network upgrades. Analysts' cautious optimism, reflected in a maintained 'HOLD' rating despite a raised target price, suggests that while risks remain, the path towards resolution is a positive step. This could indirectly benefit the Indian telecom sector by fostering competition, though its direct impact on the broader Indian stock market might be limited to sentiment for telecom stocks. Rating: 7/10. **Difficult Terms** * **AGR (Adjusted Gross Revenue)**: This is a revenue metric used by the Indian government to calculate license fees and spectrum usage charges from telecom operators. Disputes over what constituted AGR led to substantial dues for telecom companies. * **SC Order**: Refers to an order issued by the Supreme Court of India, the nation's highest court. * **DOT (Department of Telecommunications)**: The Indian government department responsible for telecom policy and regulation. * **EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of operational profitability. * **TP (Target Price)**: The price level at which a stock is expected to trade by an analyst within a specific period. * **EV/EBITDA multiple**: A valuation ratio comparing a company's enterprise value to its EBITDA, used to assess if a stock is undervalued or overvalued.