Vodafone Idea shares slide 4% as investors brace for Supreme Court hearing this week

Shares of Vodafone Idea fell nearly 4% on Tuesday to Rs 7.85 on BSE, as investors turned cautious ahead of a crucial Supreme Court hearing later this week on the telecom operator’s plea challenging the Department of Telecom’s (DoT) additional AGR dues demand of Rs 9,450 crore.

The decline comes just a day after the stock surged almost 7% on optimism over the hearing schedule, highlighting the volatility surrounding the company’s long-running legal and financial troubles. The hearing is tentatively scheduled for September 19.

The dues dispute

Vodafone Idea has petitioned the Supreme Court to quash the DoT’s demand, arguing that the Rs 9,450 crore claim “goes beyond the scope” of the apex court’s earlier ruling on AGR liabilities. Of the total demand, about Rs 2,774 crore pertains to the post-merger entity, while Rs 5,675 crore relates to liabilities of the pre-merger Vodafone Group.

The company contends that the computation includes duplicated figures and has sought a reconciliation of dues, starting with the pre-FY17 period.

The DoT, in response, told the court that the demand “is not a reassessment or recalculation but stems from the finalisation of pending accounts,” attributing the discrepancy to gaps identified after financial accounts were closed.

Stakes for funding and operations

The outcome of the hearing carries high stakes for Vodafone Idea, which has been in discussions with lenders to secure additional funding. During the June quarter earnings call, CEO Akshaya Moondra noted that “lenders were waiting for clarity on the AGR issue before proceeding with funding plans.”

Moondra added that the company “has been engaging with the government” and emphasized that a prompt resolution would allow it to move forward with capital expenditure and its broader funding strategy.

Government support in focus

Vodafone Idea, weighed down by debt and pending dues, has in the past benefited from government relief measures, including spectrum payment deferments, reform packages, and the conversion of liabilities into equity. The telco has urged that the current dispute be resolved before March to ensure timely funding arrangements.

The telecom operator's shares are down a little over 40% over the last year, and down 1.6% so far in 2025.

Also read | Ola Electric vs Ather Energy shares: Which EV bet looks stronger for your portfolio right now?

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)