The stock had gained 12.8% over the previous two sessions on hopes of a fresh bailout.
Minister of State for Rural Development and Communications Pemmasani Chandra Sekhar told the media on August 25 that the government has already extended significant relief by converting part of Vodafone Idea’s debt into equity, and that there are currently no discussions or plans for further support. He noted that the government has done all it could in terms of relief measures so far.
He further explained that any decision on additional AGR relief would require clearance from the Union Cabinet, involving the Prime Minister’s Office (PMO), the Finance Ministry, Telecom Minister Jyotiraditya Scindia and the Department of Telecommunications (DoT).
The remarks came after media reports last week suggested that the government was weighing a fresh package to ease Vodafone Idea’s burden. Proposals reportedly under discussion included extending the moratorium period, flexible repayment timelines, and waivers on penalties and interest.
Vodafone Idea faces AGR dues of around Rs 83,400 crore, with annual obligations of nearly Rs 18,000 crore kicking in from March 2025. CEO Akshaya Moondra has repeatedly warned that the company’s survival depends on securing new funding, which has been constrained by lingering uncertainty over AGR liabilities.
India's third-largest telecom operator, Vodafone Idea is backed by Aditya Birla Group and Vodafone Group. The company holds 5G spectrum in 17 circles and mmWave spectrum in 16 circles, offering services across 2G, 4G and expanding 5G networks.
On a consolidated basis, Vodafone Idea's net loss stood at Rs 6,608.1 crore in Q1 FY26 higher than Rs 6,432.1 crore in Q1 FY25. Revenue from operations rose 4.9% YoY to Rs 11,022.5 crore from Rs 10,508.3 crore in Q1 FY25.