Vodafone Idea Shares Tumble 12% After Supreme Court Order, Partial Relief On AGR Dues Raises New Uncertainty

Mumbai: Shares of Vodafone Idea Ltd. plunged 12 percent in intraday trade on Thursday, October 30, after the Supreme Court’s detailed order on adjusted gross revenue (AGR) dues revealed that the company may receive only partial relief. The stock hit a day’s low of Rs 8.21 on the BSE, compared to the previous close of Rs 9.37, reflecting investor disappointment over the limited scope of the judgment.

The apex court’s written order clarified that the relief applies solely to the additional AGR demand raised for the period up to FY2016–17, and not beyond. Analysts said this means Vodafone Idea could benefit from relief on dues amounting to around Rs 9,450 crore, significantly less than market participants had hoped for.

Supreme Court Order Restricts Relief and Applies Only to Vodafone Idea

According to the order, the petition itself limited its claim to the additional AGR demand up to FY2016–17. The court emphasized that this decision was made only for Vodafone Idea, taking into account the “peculiar facts and circumstances” presented by the Union of India.

This clarification means that rival operator Bharti Airtel, which was also seeking relief on similar dues, will not benefit from this ruling. Following the judgment, Bharti Airtel shares also dipped about 1.5 percent in Thursday’s trade.

Mounting Liabilities Continue to Threaten Viability

Vodafone Idea remains one of India’s most financially stressed telecom companies, with AGR dues of Rs 83,400 crore and total government liabilities nearing Rs 2 trillion. The company has repeatedly warned that this burden threatens both its operational viability and the livelihoods of over 18,000 employees. It currently serves around 198 million subscribers nationwide.

The partial relief from the Supreme Court, therefore, offers little respite to a company already struggling with heavy debt, limited cash flows, and intense competition in the telecom sector.

Vodafone Idea’s Petition on AGR Demand

In its September 8 petition, Vodafone Idea challenged the Department of Telecommunications’ (DoT) fresh AGR demand of Rs 9,450 crore for the period up to FY2018–19. This included Rs 2,774 crore attributed to Vodafone Idea (post-merger) and Rs 6,675 crore related to former Vodafone Group entities.

The company contended that Rs 5,606 crore of this demand—pertaining to FY2016–17 and earlier—had already been “crystallized” by the Supreme Court in earlier rulings. In an amended plea, the operator also sought waivers on penalties and interest, arguing that many components of the AGR calculation remain disputed and unresolved.