Vodafone Idea slumps as Supreme Court limits AGR relief

Vodafone Idea fell 6.4% to Rs 8.77 after the Supreme Court's written order restricted the scope of relief on the company's adjusted gross revenue (AGR) dues.

Earlier this week, the apex court had allowed the Centre to reconsider Vodafone Ideas AGR dues, which initially boosted investor sentiment. However, the written judgment issued on 29 October clarified that the relief applies only to Vodafone Idea and only to the additional AGR demand of Rs 9,450 crore.

The court said the decision was based on the "peculiar facts and circumstances" of the case and made no mention of Vodafone Ideas earlier plea for a waiver of penalties or interest, suggesting a limited review.

The order also stated that the matter falls under the policy domain of the Union government, which may act "in the larger public interest."

Vodafone Idea had challenged the DoT's demand of Rs 9,450 crore for dues up to FY19 and sought waivers on penalties and interest, which the court did not address.

The clarification disappointed investors who were hoping for broader relief on the company's AGR liabilities, estimated at around Rs 83,400 crore. The telco faces annual payment obligations of nearly Rs 18,000 crore starting March 2025.

CEO Akshaya Moondra has repeatedly warned that the companys survival hinges on securing new funding, which remains difficult amid uncertainty over AGR dues. The government currently holds a 48.99% stake in Vodafone Idea after converting part of its dues into equity.

The BSE has sought clarification from Vodafone Idea regarding media reports on the judgment. The companys reply is awaited.

India's third-largest telecom operator, Vodafone Idea is backed by Aditya Birla Group and Vodafone Group. The company holds 5G spectrum in 17 circles and mmWave spectrum in 16 circles, offering services across 2G, 4G and expanding 5G networks.

On a consolidated basis, Vodafone Idea's net loss stood at Rs 6,608.1 crore in Q1 FY26 higher than Rs 6,432.1 crore in Q1 FY25. Revenue from operations rose 4.9% YoY to Rs 11,022.5 crore from Rs 10,508.3 crore in Q1 FY25.

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