Vodafone Idea Shares Plummet Nearly 9% Following Supreme Court Ruling
Shares of Vodafone Idea (Vi) experienced a significant decline on Monday following the Supreme Court’s dismissal of petitions from major telecom companies seeking relief from adjusted gross revenue (AGR) dues. The stock plummeted by 8.68% to close at Rs 6.73 on the Bombay Stock Exchange, after hitting an intraday low of Rs 6.47, a drop of 12.21%. This sharp decline erased approximately Rs 6,933.95 crore from Vodafone Idea’s market capitalization, which now stands at Rs 72,914.86 crore.
Impact on Related Stocks
The Supreme Court’s ruling not only affected Vodafone Idea but also had repercussions for other telecom companies. Indus Towers saw its shares fall by 2.87%, while Tata Teleservices experienced a slight decline of 0.46%. The court’s decision came after Vodafone Idea, along with Bharti Airtel and Tata Teleservices, sought waivers on various components of their AGR dues, including interest and penalties. Vodafone Idea alone requested relief amounting to around Rs 30,000 crore, citing calculation errors and duplicate entries in the dues.
Dismissal of Appeals
A bench of Justices J B Pardiwala and R Mahadevan firmly rejected the appeals, labeling them as “misconceived.” The justices expressed their shock and disappointment at the petitions presented by the telecom giants, emphasizing that such requests were unexpected from multinational companies. This ruling follows a similar decision made by the Supreme Court in July 2021, which upheld the government’s position on recovering AGR dues. The court reiterated its stance on Monday, signaling a definitive end to the ongoing litigation surrounding the matter.
Concerns Over Future Operations
In a related development, Vodafone Idea recently communicated with the Department of Telecommunications (DoT), warning that it may not be able to sustain operations beyond the fiscal year 2026 without government support regarding AGR dues. In a letter dated April 17, 2025, Vi’s CEO Akshaya Moondra indicated that the lack of timely assistance from the government would hinder the company’s ability to secure bank funding, leading to a potential point of no return for the telecom operator. This statement underscores the critical financial challenges facing Vodafone Idea in light of the Supreme Court’s ruling.
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