Vodafone Idea Shares Slide 12% After Supreme Court AGR Clarification

Vodafone Idea shares fell up to 12% on October 30 after the Supreme Court’s written order clarified that its earlier direction allowing the Centre to reconsider adjusted gross revenue (AGR) dues applies only to Vodafone Idea Ltd, and is restricted to the additional AGR dues raised up to FY2016–17.

The ruling had a spillover effect on other telecom stocks, with Indus Towers and Bharti Airtel trading 3% and 1.5% lower, respectively. Meanwhile, Bharti Hexacom shares slipped 3% to ₹1,861 apiece at 10:30 am.

Court Limits AGR Reconsideration to Vodafone Idea

The apex court’s written order, issued on October 29, followed its earlier decision on October 27 permitting the government to revisit Vodafone Idea’s AGR dues. The bench led by Chief Justice B. R. Gavai noted that the relaxation applies only to Vodafone Idea and only for the incremental AGR demands till FY2016–17.

“It is further to be noted that the prayer in the petition itself restricts its claim only to the additional AGR demand raised for the period up to FY2016–17,” the order stated.

The judgment emphasized that the decision was based on the “peculiar facts and circumstances” of the case, including the Union government’s 49% equity stake in Vodafone Idea and its 20 crore customers, making it a matter of public interest.

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Vodafone Idea Stock Hits Third Straight Day of Losses

At 10:50 am, Vodafone Idea’s shares were trading 7.5% lower at ₹8.65, after hitting an intraday low of ₹8.21. The stock is now on course for its third consecutive session of decline, following a sharp rally earlier in the week.

On October 27, Vodafone Idea had surged to a one-year high of ₹10.57, driven by optimism that the court’s permission for a government review of AGR dues could lead to financial relief.

However, after the written clarification, investor sentiment turned negative as it became clear that the order was limited in scope and applied exclusively to Vodafone Idea.

Analyst and Government Responses

According to Piyush Pandey, lead analyst at Centrum India, the Supreme Court’s order “applies only to the incremental AGR demand” and any impact on the stock will depend on how the government acts next.

“Unless there is substantial relief, it is not going to make a major difference for Vodafone Idea’s stock,” Pandey said.

Telecom Minister Jyotiraditya Scindia stated on October 29 that the government will study the court’s order before taking any decision on potential relief measures.

“We will need to study the order to understand its implications and will wait for Vodafone Idea to apply for seeking relief,” Scindia said.

A senior government official told Moneycontrol that the Centre will assess the detailed order before deciding on the course of action. “The finer details of the judgment will guide us on any possible relief,” the official said.

Supreme Court’s Stand on AGR Review

The Supreme Court clarified that there is no legal barrier to the government reconsidering the AGR issue if it wishes to do so, as the matter falls “within the policy domain of the Union of India.”

The court’s observation came in response to Vodafone Idea’s petition seeking to quash additional AGR demands raised by the Department of Telecommunications (DoT) and reconcile dues as per the Deduction Verification Guidelines of February 2020.

During the hearing, Solicitor General Tushar Mehta, representing the government, said that the Centre is open to reviewing the issue, citing the government’s equity stake and public interest considerations.

While the court did not grant direct relief, the order opens the door for a government-led review of Vodafone Idea’s outstanding AGR dues.

Market Impact

On October 30, Vodafone Idea was the top loser among Nifty 500 stocks, with investors reacting to uncertainty over the extent of potential government relief. Despite today’s sharp fall, the stock has still gained 3.5% so far in 2025.

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