Vodafone Idea Share Price Dips After Supreme Court Defers AGR Case Hearing

The Vodafone Idea share price took a sharp hit on Friday as the Supreme Court of India deferred the hearing in the company’s Adjusted Gross Revenue (AGR) case to October 6. The telecom stock fell nearly 9%, settling at ₹7.90 per share on the BSE, reflecting investor caution over regulatory uncertainties.

Market Performance

The Indian stock market saw Vodafone Idea shares leading the decline among telecom stocks. At 11:55 AM, the share was trading 6.34% lower at ₹8.13 on the BSE. Over the last year, Vodafone Idea stock has seen significant volatility:

• 1 month gain: 21%
  
  
• 3 months gain: 12%
  
  
• 6 months gain: 15%
  
  
• 1 year loss: 22%
  
  
• 2 years loss: 33%
  
  
• 10-year loss: 90%
  
  

These numbers illustrate a sharp decline in value over the long term despite occasional short-term rallies.

Main News: Supreme Court Hearing Deferred

The Supreme Court hearing, initially scheduled for Friday, September 26, was pushed to October 6 following a request from the government. Solicitor General Tushar Mehta, representing the Department of Telecommunications (DoT), sought additional time to respond to Vodafone Idea’s plea. The telecom operator did not oppose the deferment.

The case centers around DoT’s demand of ₹9,450 crore in additional AGR dues. Vodafone Idea has petitioned the Supreme Court to set aside the demand, stating it exceeds the scope of the court’s earlier judgment on AGR liabilities.

Last week, the government, which owns a 49% stake in Vodafone Idea after converting interest liabilities into equity, informed the apex court that it does not oppose the telecom company’s plea. The government emphasized that a resolution is needed due to its substantial stake in the company.

Company Details

Vodafone Idea is a debt-laden telecom operator that has struggled with regulatory challenges, high interest costs, and competition. Its equity performance over the past decade reflects both the challenges and intermittent recoveries:

• The stock has rallied in recent months with 21% gains in one month and 12% in three months, showing short-term resilience.
  
  
• Long-term performance remains weak, with a 90% drop over ten years.
  
  

This combination of regulatory uncertainty and financial stress continues to influence investor sentiment.

Summary

Vodafone Idea shares fell sharply after the Supreme Court deferred the AGR hearing. The telecom operator’s AGR dues of ₹9,450 crore remain a key concern, alongside its financial leverage and government stake. While short-term rallies are possible, the stock’s long-term performance highlights the structural challenges the company faces in the telecom sector.