AGR Cloud Looms: Vodafone Idea Shares Decline After 24% Rally In One Month

Vodafone Idea’s stock fell as much as 8% to ₹7.83 on Tuesday, as investors likely booked profits. The stock had climbed higher in eight of the previous nine sessions, gaining nearly 24% over the last month.

The shares rallied 6.27% on Monday, after news reports indicated that a crucial Supreme Court hearing on additional Adjusted Gross Revenue (AGR) dues is scheduled for September 19.

AGR Dispute with DoT

The telecom operator has filed a petition in the Supreme Court challenging the Department of Telecommunications’ (DoT) demand for an additional ₹9,450 crore in AGR dues. Vodafone Idea argued that the revised calculation goes beyond the scope of the Court’s earlier ruling, which had locked in AGR liabilities up to FY17.

Of the total due, around ₹5,675 crore relates to the pre-merger Vodafone Group, while ₹2,774 crore affects the post-merger company. Vodafone Idea claims specific amounts have been duplicated in the DoT’s assessment and has sought a recalculation. It said nearly ₹5,606 crore of the demand had already been settled under the Court’s 2020 judgment.

Increasing Debt

Vodafone Idea owes about ₹83,400 crore in AGR dues, with instalments of ₹18,000 crore annually starting March 2026. Its overall liabilities to the government are estimated at nearly ₹2 trillion, including penalties and interest.

The company warned that the additional demand could further strain its finances, at a time when it is working to raise capital, expand 4G coverage, and accelerate its 5G rollout.

Retail Investors Bullish?

Retail sentiment surrounding the stock has been ‘bullish’ or more over the past month, during which it gained nearly 30%.

However, the stock price is largely unchanged on a year-to-date basis. 

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