Vodafone Idea shares plunge after Indian Supreme Court’s limited relief order
Shares of debt-ridden telecom firm Vodafone Idea fell by more than 5% in intraday trading on Thursday, October 30, following concerns that the Indian Supreme Court’s latest order offers only partial relief to the company.
According to the Supreme Court’s written order, the claim is limited to the additional adjusted gross revenue (AGR) demand raised for the period up to the financial year 2016–17, News.Az reports, citing Mint.
Media reports citing analysts suggested that the relief, if granted, will likely cover only the new AGR demand of ₹9,450 crore.
“It is further to be noted that the prayer in the petition itself restricts its claim only to the additional AGR demand raised by the respondent for the period up to the Financial Year 2016–17,” the Supreme Court order stated.
The court further clarified that its decision applies exclusively to Vodafone Idea, dealing a setback to rival Bharti Airtel, whose shares also fell by nearly 1.5% in Thursday’s trade. “We further clarify that this order is passed only with regard to the petitioner—Vodafone Idea Ltd.—taking into consideration the peculiar facts and circumstances of the case as put up by the Union of India,” the apex court added.
Vodafone Idea, burdened with ₹83,400 crore in AGR dues and total government liabilities nearing ₹2 trillion, has repeatedly warned that such financial stress threatens its viability and the livelihoods of its workforce. The company employs over 18,000 people and serves around 198 million subscribers across India.
Brokerage firm Emkay Global noted that even excluding AGR dues, Vodafone Idea’s debt—around ₹1.18 trillion, largely related to spectrum payments—remains high relative to its FY25 EBITDA of ₹92 billion (excluding IndAS-116 impact). The brokerage emphasized the need for the government to take a holistic approach to the company’s solvency and structure comprehensive relief.
While the Supreme Court’s decision marginally improves Vodafone Idea’s revival prospects, Emkay Global maintained its SELL rating on the stock with a target price of ₹6, citing continued high leverage, valuation concerns, and uncertainty over the government’s stance on spectrum debt.
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