Vodafone Idea Shares Surge After Supreme Court AGR Ruling

Mumbai, 27 October 2025 — Vodafone Idea saw its shares surge sharply on Monday after the Supreme Court granted the Central government the discretion to reconsider the telecom operator’s AGR (Adjusted Gross Revenue) dues. Shares rallied as much as 9.45%, closing at ₹10.53 on the BSE, reflecting renewed investor optimism.

The Supreme Court noted that the matter falls under government policy, signaling no legal barrier to the Centre reviewing the dues. The decision allows the government to address Vodafone Idea’s grievances without judicial intervention.

For years, Vodafone Idea has grappled with massive AGR liabilities. The company had challenged the Department of Telecommunications’ demand of ₹5,606 crore for the period up to FY2016–17, arguing for a reassessment following the “Deduction Verification Guidelines” of 2020. AGR represents the revenue base for calculating license fees and spectrum charges, and its proper definition has been at the heart of a prolonged legal and financial saga.

The telecom sector has experienced significant stress following the Supreme Court’s 2019 landmark verdict on AGR, which initially defined AGR to include both telecom and non-telecom income. Subsequent government revisions in 2021 eased the burden by excluding non-telecom revenue from calculations, but substantial dues remained.

Earlier this month, the court had deferred hearings on Vodafone Idea’s plea, giving the government more time to finalize its stance. The Centre, which holds nearly 50% equity in the operator, has emphasized its role as a direct stakeholder in the company’s survival, highlighting ongoing efforts to resolve the matter.

Monday’s surge in Vodafone Idea shares underscores the market’s sensitivity to regulatory clarity and potential relief in the debt-laden telecom sector. Analysts note that allowing policy-based reconsideration could pave the way for improved liquidity and stability for the operator, offering hope for one of India’s largest telecom players.