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On Monday, October 13, 2025, shares of Vodafone Idea Ltd. declined after investors turned cautious before the Supreme Court hearing for the long-pending adjusted gross revenue (AGR) dues case. The stock slipped nearly 2% to Rs. 8.86 per share on the BSE, before slightly recovering to trade around Rs. 8.96, down 0.88% from the previous close of Rs. 9.04.
The Supreme Court was scheduled to hear Vodafone Idea’s plea challenging the Department of Telecommunications’ (DoT) additional AGR demand of approximately Rs. 9,450 crore.
However, the hearing was deferred for the third time, with the court adjourning the matter to October 27, following the government’s request for additional time.
During the proceedings, Solicitor General Tushar Mehta, representing the Centre, sought an extension on behalf of the DoT, stating that the government needed more time to finalize its position.
Senior advocate Mukul Rohatgi, appearing for Vodafone Idea, did not object to the adjournment, stating humorously, “We also want to celebrate Diwali this year.”
According to a Bloomberg report, the government is considering a one-time settlement (OTS) plan to resolve Vodafone Idea’s long-standing AGR dispute.
The proposal could include waivers of interest and penalties, along with partial concessions on the principal amount. The settlement framework is meant to rebuild the relationship between India-UK in the business sector as well as to protect the investors' trust, given Vodafone’s foreign ownership structure.
The potential move aligns with the government’s telecom sector stabilization strategy, particularly as it is already a 49% equity shareholder in the company.
Vodafone Idea's total AGR liability amounts to around Rs. 83,400 crore, with annual payments of Rs. 18,000 crore starting from March 2025. If penalties and interest are taken into account, total obligations may exceed Rs. 2 lakh crore, thus putting the company under severe financial pressure.
The AGR conflict started with a Supreme Court ruling in 2019 that mandated telecom operators to account for non-telecom income in their AGR calculations.
The telecom operator has consistently claimed it has settled all undisputed dues and that the additional DoT demand includes discrepancies and duplications from previous years' accounts.
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Market analysts expect Vodafone Idea's stock price to be unstable until a clear solution is found. The company's future is dependent on the court's decision and financial relief, which might also impact its cash flow and debt policy.
At present, the market capitalisation of Vodafone Idea is around Rs. 97,942 crores, with its shares trading between Rs. 6.12 and Rs. 10.47 in the past year.
Even though there is still hope of a settlement, the investors are likely to be very careful until the Supreme Court's final decision after Diwali.
