Operating within the Telecom - Services sector, Vodafone Idea faces intense competition and capital-intensive operational demands, with its challenges reflective of broader sectral pressures including regulatory changes. The Union Cabinet has frozen the company's AGR dues at Rs 87,695 crore, rescheduled over 10 years from FY32 to FY41, providing critical debt relief.
Cyborg Score Rationale
The company exhibits below average quality metrics with a negative book value signalling weak long-term fundamental strength. The Debt to EBITDA ratio stands at 9.60 times, indicating significant leverage and potential financial stress. However, recent government relief on AGR dues provides a lifeline.
Top Insights
Government approved Rs 87,695 crore AGR freeze with 10-year repayment starting 2032, providing critical financial relief
Persistent challenges including negative book value, high leverage (9.6x Debt/EBITDA), and weak operating profitability
Stock delivered 30.73% return over past year despite negative operating profits, suggesting market speculation-driven gains
Company has delivered poor sales growth of -0.62% over past five years, indicating structural market headwinds
Named Competitors
Bharti Airtel — Leading Indian telecom provider with dominant 4G/5G presence
Reliance Jio — High-growth telecom disruptor with price-aggressive 5G expansion
Tata Teleservices — Legacy telecom operator competing across mobility and broadband
Recent Developments
(February 2026) TRAI imposed Rs 8 lakh fine for QoS breaches in May 2025
(January 2026) CARE changed Vodafone Idea outlook to Positive; rating reaffirmed CARE BBB-
(December 2025) Union Cabinet approved relief package freezing AGR dues at Rs 87,695 crore with repayment rescheduled over 10 years
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