Post by : Badri Ariffin

Mumbai, 27 October 2025 — Vodafone Idea's shares climbed sharply on Monday after the Supreme Court gave the Central government the authority to revisit the operator's AGR (Adjusted Gross Revenue) liabilities. The stock rallied as much as 9.45%, finishing at ₹10.53 on the BSE, reflecting renewed market optimism.

The court observed that the issue falls within the domain of government policy, removing a legal obstacle to the Centre reassessing the disputed dues. This ruling permits the government to consider Vodafone Idea's claims without further judicial direction.

Vodafone Idea has been contending with large AGR claims for years. The company challenged the Department of Telecommunications' demand of ₹5,606 crore for periods up to FY2016–17 and sought a fresh appraisal under the 2020 "Deduction Verification Guidelines." AGR is the revenue measure used to calculate licence fees and spectrum levies, and disagreements over its scope have driven prolonged legal and financial turmoil.

The telecom sector was hit hard after the Supreme Court's 2019 decision that included non-telecom receipts in AGR. Subsequent government amendments in 2021 narrowed the definition by excluding non-telecom income, but significant liabilities persisted for operators.

Earlier this month, the court deferred further hearings on Vodafone Idea's petition to allow the Centre additional time to formulate its position. With the government holding nearly 50% of the operator's equity, officials have stressed their stake and their involvement in efforts to find a resolution.

Monday's share surge highlights how sensitive markets remain to regulatory clarity. Analysts say that allowing a policy-level reconsideration could improve Vodafone Idea's liquidity and stabilise its finances, offering a potential reprieve for the heavily indebted carrier.

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