Vodafone Idea share price rose more than 3.5% following media reports that the company’s licence fee liability could be slashed between 60-65% after a reassessment exercise conducted by the Department of Telecommunications (DoT).
According to a CNBC Awaaz report, the telecom department has completed the reassessment of licence fees through the respective Controller of Communication Accounts (CCA) offices. The DoT had earlier instructed all concerned authorities to conclude the exercise by February 22.
Following the completion of the licence fee review, the reassessment of Spectrum Usage Charges (SUC) is still pending. Sources indicated that this process is expected to be completed by March 31. A committee constituted by the Department of Telecommunications and led by a retired IAS officer will take the final call on the reassessed dues.
Vodafone Idea’s outstanding adjusted gross revenue (AGR) liabilities include both licence fees and spectrum usage charges. Earlier this year, the company stated that its AGR dues related to the period between financial year 2006-07 and financial year 2018-19 would be frozen and repaid through instalments beginning March 2026.
Vodafone Idea Stock performance
Vodafone Idea shares rose as much as 3.6% during the session to hit an intraday high of ₹10.35.
The stock remains about 19% below its 52-week high of ₹12.80 recorded in December 2025. On the downside, it had touched a 52-week low of ₹6.12 in August 2025.
In terms of recent performance, Vodafone Idea shares have declined around 10% over the past one month and slipped more than 7% in the last three months. However, the telecom stock has gained about 39% in six months and is up roughly 28% over the past year.
JPMorgan downgrades Vodafone Idea
Earlier this month, global brokerage JPMorgan downgraded Vodafone Idea shares and warned of potential downside in the telecom stock. The brokerage assigned an ‘Underweight’ rating and set a target price of ₹9 per share, indicating a possible decline of around 20% from Wednesday’s closing level.
JPMorgan said the recent rally in the stock appears excessive as the company is yet to secure bank funding required to support the next phase of capital expenditure. According to the brokerage, fresh investments in network infrastructure are essential for Vodafone Idea to stabilise its subscriber base, curb losses, and eventually achieve net subscriber additions.
The brokerage highlighted that the company initiated its first capex cycle in the June quarter of FY25 after raising about ₹18,000 crore through a follow-on public offer (FPO). While this funding helped slow subscriber losses, it was not sufficient to generate positive net additions.
JPMorgan also expressed concerns over Vodafone Idea’s projection of tripling its cash EBITDA over the next three years. The brokerage said the company’s forecasts appear optimistic as they assume market share gains from competitors such as Bharti Airtel and Reliance Jio, an outcome the brokerage believes may be difficult to achieve.
The brokerage further noted that the telecom operator faces several hurdles before its business can stabilise, including securing bank funding and reversing subscriber losses. It added that at around 15x FY27 EV/EBITDA estimates, the current share price already factors in most positive developments.
Promoter Kumar Mangalam Birla increases stake
Promoter Kumar Mangalam Birla has recently increased his holding in the telecom operator by purchasing shares from the open market.
According to NSE data, Birla bought 2.21 crore Vodafone Idea shares on January 30. This was followed by the purchase of 1.88 crore shares on February 1 and another 45 lakh shares on February 2.
He continued accumulating shares in the following days, acquiring 1.42 crore shares on February 3 and an additional 1.87 crore shares on February 4. Overall, Birla purchased about 7.83 crore shares of Vodafone Idea between January 30 and February 4.
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