Vodafone Idea Shares Rally After Supreme Court Relief

Vodafone Idea’s stock saw strong buying momentum on Monday, soaring over 8%, after the Supreme Court allowed the Central Government to reconsider the reassessment of the company’s adjusted gross revenue (AGR) dues — a key overhang that has long weighed on the telecom operator’s financials.

The shares surged as much as 8.62% to ₹10.45 apiece on the BSE, marking a sharp upward move following the apex court’s observation that the issue lies within the Union’s policy domain. The Court stated that it sees no impediment in the Centre re-evaluating the matter and taking an appropriate decision.

Court Allows Centre to Revisit AGR Dues Issue

In what comes as a significant relief for the debt-laden telecom major, the Supreme Court clarified that there was no restriction preventing the government from reconsidering the reassessment of dues.

The move has renewed optimism around the potential easing of financial stress on the company, as AGR liabilities have been a major drag on the telecom sector for years.

Understanding the AGR Case

The Adjusted Gross Revenue (AGR) represents the income figure used to calculate licence fees and spectrum charges payable by telecom companies to the government.

Originally, the definition of AGR included both telecom and non-telecom income — such as interest income or gains from asset sales. This broad inclusion had led to hefty financial liabilities for operators.

However, in 2021, the government revised the AGR definition, excluding non-telecom income from the calculation — a step that eased the pressure on telecom firms.

Vodafone Idea’s AGR Dispute Timeline

• October 13, 2025: The Supreme Court deferred the hearing of Vodafone Idea’s plea in the AGR dues case to October 27.
• The telecom operator has challenged the Department of Telecommunications (DoT) demand for additional dues worth ₹5,606 crore for the period up to FY2016–17.
• Vodafone Idea has sought directions for the DoT to “re-assess and reconcile all AGR dues” as per the Deduction Verification Guidelines issued on February 3, 2020.
• In September 2020, the Supreme Court had set a 10-year payment timeline for telecom service providers to clear AGR dues amounting to ₹93,520 crore, directing 10% of the total dues to be paid by March 31, 2021, and the balance in annual installments till March 2031.
• Earlier this year, the apex court had also refused to review its 2021 order, rejecting telecom companies’ pleas seeking rectification of alleged calculation errors.

Government’s Role and Stake in Vodafone Idea

The Central Government currently holds nearly 50% equity in Vodafone Idea, making it a direct stakeholder in the telecom firm’s financial health. The Solicitor General earlier informed the court that the government continues to work towards an appropriate resolution.

This shareholding underscores the importance of the Supreme Court’s decision — allowing the Centre to revisit the AGR reassessment could directly impact the company’s balance sheet and, by extension, the government’s investment value.

Summary

The Supreme Court’s green signal for the Centre to reconsider Vodafone Idea’s AGR dues marks a pivotal development in the long-running telecom dispute.

For Vodafone Idea, this decision revives hope for financial breathing space, potentially paving the way for operational stability and long-term business revival.

With the matter now in the government’s court, investors and industry watchers will closely track how the reassessment unfolds — and what it could mean for the telecom sector’s future debt landscape.