Citi has maintained its buy rating on Indus Towers (TP ₹460) and its buy/high risk rating on Vodafone Idea (TP ₹10), saying that recent Supreme Court developments could lead to a potential breakthrough in Vodafone Idea’s adjusted gross revenue (AGR) issue, with significant positive implications for both companies.
Vodafone Idea stated that the Supreme Court has permitted the Government of India to consider its grievances related to AGR dues. Citi said this development could pave the way for relief well ahead of the March 2026 deadline for a large lumpsum payment. The brokerage expects clarity to emerge over the next few weeks or months.
Citi added that any favourable resolution of the AGR matter would materially ease Vodafone Idea’s financial burden, improving its repayment capacity and strengthening Indus Towers’ receivable position. The brokerage remains positive on both stocks, citing improving industry dynamics, ongoing tariff rationalisation, and potential for deleveraging.
Disclaimer: The views and recommendations above are those of Citi. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
