CHENNAI: Vodafone Idea shares declined sharply in early trade on Monday, October 6, as investors turned cautious ahead of a crucial Supreme Court hearing on the company’s adjusted gross revenue (AGR) dues case.
At 10:50 AM IST, Vodafone Idea’s stock was trading at Rs 8.46 on the BSE, down around 4.2 percent from the previous close. Earlier in the session, the shares touched an intraday low of Rs 8.37, reflecting weak investor sentiment ahead of the verdict.
The drop comes as the Supreme Court is scheduled to hear Vodafone Idea’s plea challenging the Department of Telecommunications’ (DoT) demand for an additional Rs 9,450 crore in AGR dues. The telecom operator maintains that these claims fall outside the scope of the earlier court judgment, which had already settled the AGR liabilities for telecom companies.
The AGR dispute has been a long-standing issue for Indian telecom operators. AGR, or Adjusted Gross Revenue, is a measure used by the DoT to calculate the license fees and spectrum usage charges payable by telecom companies to the government. In 2012, the Supreme Court clarified that AGR includes all revenue earned by telecom operators, including non-telecom income such as interest and rent, which significantly increased the companies’ liabilities.
Vodafone Idea, formed in 2018 through the merger of Vodafone India and Idea Cellular, inherited a large portion of this liability. Over the years, the company has paid substantial sums to comply with prior AGR rulings but continues to challenge the government’s claims for additional payments. The latest hearing is seen as a key moment that could influence the company’s debt position, cash flow, and ability to invest in network expansion.
The case is being closely watched by investors, as the court’s decision could significantly impact the company’s financial stability and future fundraising plans. Vodafone Idea continues to face high debt levels and liquidity challenges, even as it works on network expansion and subscriber retention strategies.
Analysts noted that the market reaction reflects heightened uncertainty over the outcome of the hearing. “Any adverse ruling could delay Vodafone Idea’s recovery efforts, while a favorable order may ease investor concerns,” said one market watcher.
The stock’s movement also weighed on the broader telecom sector sentiment, though peer stocks such as Bharti Airtel and Reliance Jio-related entities traded with minor changes.
Overall, Vodafone Idea shares remained under pressure through the morning session, with the AGR case outcome likely to set the near-term direction for the stock and investor confidence in the company.