Citi Upgrades Vodafone Idea to Buy Amid AGR Resolution
Is the AGR overhang over? Here's why Citi has turned bullish on Vodafone Idea with a buy call
The Economic TimesImage: The Economic Times
Citi has upgraded Vodafone Idea to a 'Buy-High Risk' rating, setting a target price of ₹14, indicating a potential upside of over 37%. The resolution of the adjusted gross revenue (AGR) issue is expected to enhance the telecom operator's ability to raise debt and expand its network.
- 01Citi upgraded Vodafone Idea to 'Buy-High Risk' with a target price of ₹14.
- 02The resolution of the AGR issue is expected to improve lender confidence.
- 03Vodafone Idea's market cap is approximately ₹1.1 lakh crore.
- 04Citi anticipates the company could raise the full ₹25,000 crore targeted for network expansion.
- 05Key risks include potential tariff hikes and subscriber churn.
Advertisement
In-Article Ad
Citi has upgraded Vodafone Idea, a major telecom operator in India, to a 'Buy-High Risk' rating, with a target price of ₹14, reflecting a potential upside of over 37%. The brokerage believes that the long-standing issue surrounding adjusted gross revenue (AGR) has been resolved, which significantly enhances the company's prospects for raising debt and completing its network expansion. With the government acquiring a 36% stake at ₹10 per share, the effective haircut on AGR dues is around 20% below the Reserve Bank of India's recovery value estimate. This resolution is seen as a positive development for both minority shareholders and potential lenders, allowing Vodafone Idea to pursue its full ₹25,000 crore fundraising plan, rather than the previously assumed ₹20,000 crore. However, Citi cautions that the stock remains high risk due to factors such as lower-than-expected tariff hikes and subscriber churn. The brokerage retains its long-term operating assumptions, projecting an industry EBITDA multiple of 7x by FY28, with improved chances of achieving these figures following the clarity on policy.
Advertisement
In-Article Ad
The AGR resolution could lead to improved network services and coverage for users, as Vodafone Idea secures funding for expansion.
Advertisement
In-Article Ad
Reader Poll
Do you think Vodafone Idea will successfully raise the targeted ₹25,000 crore for expansion?
Connecting to poll...
More about Citi

Analysts Optimistic on Apple's Earnings Amid Cost Pressures
Cnbc • May 1, 2026
Top Stocks to Consider for Long-Term Investment in 2026: PNB Housing and Fortis Healthcare Lead the Pack
The Economic Times • Apr 27, 2026

Conflito no Oriente Médio e inflação dominam os mercados financeiros
Jornal Economico • Apr 13, 2026
Read the original article
Visit the source for the complete story.


