Vodafone Idea's Looming Crisis: Spectrum Debt Dwarfs AGR Relief, Warns IIFL

• Vodafone Idea received some relief on AGR dues, but spectrum debt remains a major concern.
• AGR liabilities constitute only 40% of Vodafone Idea's total pending dues to the government.
• The company faces significant spectrum liability payments: ₹6,000 crore next year, ₹15,000 crore in FY2028, and ₹25,000-₹26,000 crore annually from FY2029.
• Fresh equity investment could help, potentially diluting government stake and converting more spectrum debt into equity.
• While fundraising could improve cash flow and create equity value, it would also lead to significant dilution for existing shareholders.

Why It Matters: Vodafone Idea's substantial spectrum debt poses a greater challenge than AGR, requiring fresh investment.