Vodafone Idea share price falls for second consecutive day. Here's why

Vodafone Idea share price continued to fall for the second consecutive day on Wednesday, June 4, after the telecom company said it is actively in discussions with the central government to seek relief regarding its long-pending Adjusted Gross Revenue (AGR) dues.

Vodafone Idea stock fell as much as 1.33 per cent in early trade. At 9:55 am, the stock was trading at ₹6.68 apiece on the National Stock Exchange (NSE).

On Tuesday, Vodafone Idea shares saw a significant decline of up to 4 per cent, with the stock settling at ₹6.77.

Vodafone Idea talks with central govt

Vodafone Idea, currently grappling with financial difficulties, is in discussions with banks to secure debt funding aimed at supporting its long-term growth, according to CEO Akshaya Moondra. He noted that lenders would require transparency regarding the company’s outstanding dues to the government before considering any loan approvals.

Moondra further stated that the telecom firm is still negotiating with the central government for a practical solution to the Adjusted Gross Revenue (AGR) issue. He stressed that since the matter falls under policy, the government should have complete discretion to offer relief, without being constrained by judicial oversight.

Highlighting the financial strain on the company, Moondra cited India’s low Average Revenue Per User (ARPU) and unsustainable data tariffs as major challenges. He advocated for a pricing structure where high data consumers pay more, emphasising that the sector's returns currently fail to meet capital costs.

This comes after a significant blow from the Supreme Court, which recently denied the company’s plea for relief, intensifying the crisis for the debt-laden operator.

Vodafone Idea is burdened with AGR dues of nearly ₹30,000 crore and continues to lose market share. According to TRAI data, the company lost 6.47 lakh subscribers in April, reducing its total user base to 20.47 crore.

Before the Supreme Court ruling, the company had urgently appealed to the telecom department, warning that without timely support from the government, it may not be able to continue operations beyond FY26.

Despite narrowing its net loss to ₹7,166.1 crore in Q4 FY25, Vodafone Idea remains reliant on external funding. Its board has recently approved a fundraising plan of up to ₹20,000 crore, which is subject to shareholder and regulatory approval.

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