Vodafone Idea Shares Sink 5% As Supreme Court’s AGR Order Fine Print Sparks Fresh Concerns

Vodafone Idea Share Price: Shares of debt-laden telecom operator Vodafone Idea tumbled over 5% in intraday trade on Thursday, October 30, amid concerns that the Supreme Court’s order provides only partial

relief to the company.

According to the Supreme Court’s written order, the claim is restricted solely to the additional adjusted gross revenue (AGR) demand raised for the period up to the financial year 2016-17. As per media reports citing analysts, any relief, if granted, will apply only to the new AGR demand of Rs 9,450 crore.

“It is further to be noted that the prayer in the petition itself restricts its claim only to the additional AGR demand raised by the respondent for the period up to the Financial Year 2016-17,” the Supreme Court order stated.

The apex court further clarified that the ruling applies only to Vodafone Idea, impacting rival Bharti Airtel as well, whose shares slipped nearly 1.5% in today’s trade.

“We further clarify that this order is passed only with regard to the petitioner—Vodafone Idea Ltd., taking into consideration the peculiar facts and circumstances of the case as put up by the Union of India,” the Supreme Court said in its order.

Vodafone Idea, which is saddled with Rs 83,400 crore in AGR dues and total government liabilities of nearly Rs 2 trillion, has repeatedly warned that such heavy obligations threaten its viability and the livelihoods of its workforce.

The operator employs over 18,000 people and serves around 198 million subscribers across India.

Brokerage Emkay Global noted that even excluding AGR dues, Vodafone Idea’s debt of approximately Rs 1.18 trillion (primarily spectrum-related) is elevated relative to its current EBITDA (Rs 92 billion in FY25, excluding IndAS-116 impact).

Therefore, Emkay expects the Government of India to adopt a holistic view on Vodafone Idea’s solvency and design support accordingly. While the Supreme Court’s permission improves the company’s revival prospects, the brokerage cited high leverage, steep valuations, and uncertainty over the government’s stance on spectrum debt, reiterating its ‘SELL‘ rating on Vodafone Idea with a target price of Rs 6.

Vodafone Idea Case

In its petition filed on September 8, Vodafone Idea challenged the Department of Telecommunications’ (DoT) fresh Rs 9,450 crore demand for the period up to 2018-19. This included Rs 2,774 crore attributed to Vodafone Idea (post-merger) and Rs 6,675 crore linked to former Vodafone Group entities.

The company argued that out of the total Rs 9,450 crore demand, about Rs 5,606 crore (as of March 31, 2025) pertains to the period up to 2016-17, which had already been “crystallised” by the Supreme Court.

In an amended petition, the operator also sought a waiver of penalties and interest on the AGR dues, stating that several components of the demand remain disputed or unresolved.