Vodafone Idea AGR Case: Telecom Provider's Shares Surge Over 9 Per Cent To Hit 52-Week High - Know Why

Vodafone Idea AGR Case: Shares of Vodafone Idea Ltd surged over 9 per cent to a 52-week high of Rs 10.57 apiece on the NSE on October 27. The surge in the telecom service provider’s stock followed a decline seen in early trade wherein the stock declined to a low of Rs 9.28 apiece on the NSE. Notably, the stock managed to recover nearly 14 per cent from the day’s low.

The surge seen in Vodafone Idea’s share price followed a significant decision announced by the Supreme Court regarding the government's decision to look into the issues flagged by the telecom company.

Why Did Vodafone Idea Shares Surge

Shares of Vodafone Idea extended gains on October 27, as the Supreme Court allowed the central government to reconsider the telecom company's adjusted gross revenue (AGR) dues.

The matter in which the Supreme Court allowed the government to look into concerns Vodafone Idea’s AGR dues worth Rs 5,606 crore for the financial year 2016–17 (FY17). The decision was made by a bench comprising Chief Justice of India B. R. Gavai and Justice K. Vinod Chandran.

“Taking into consideration the status of the case now, the government has infused substantial equity into the company, and further, that the issue involved is likely to have a direct bearing on the interests of 20 crore customers, we see no issue in the Union reconsidering the issue and taking an appropriate decision,” the bench stated in its judgement.

The court announced that it saw no reason why the government could not review the issue, which falls under its policy domain. The government’s decision to review the AGR dues and Supreme Court’s approval for doing the same turned investor sentiment positive regarding the stock.

The government's intervention in the matter and inspection of the dispute is being seen as a welcome step in reaching a conclusion in the case concerning Vodafone Idea’s AGR dues. The development is likely to have provided some relief to investors who have been worried about the financially stressed company.

The Supreme Court also underlined in its decision that the government has a 49 per cent equity stake in Vodafone Idea following a debt-to-equity swap agreement. Earlier in April 2025, Vodafone Idea converted Rs 36,950 crore of outstanding spectrum auction dues into equity giving the government a 49 per cent stake in the company. Prior to 2025, a similar debt-to-equity swap also took place in 2023.

Thus the government’s motive behind looking into the AGR dues is likely to be an attempt to protect the overall health of the telecom sector and interests of customers and shareholders of Vodafone Idea. Earlier on October 13, the Supreme Court deferred Vodafone Idea’s plea to look into the additional AGR dues levied on the company.

The telecom company challenged the Department of Telecom's claim seeking the payment of AGR dues of Rs 5,606 crore for FY2016–17. The telecom company further claimed that the DoT was demanding additional dues already paid as a part of the overall AGR liabilities.

Notably, the AGR liabilities arose after Vodafone Idea’s spectrum purchases amid a near two-decade dispute over what is included in the AGR. While the AGR dues were levied on several telecom companies, Vodafone Idea’s liability stood at Rs 83,400 crore as of March 2025. However the DoT demanded Rs 9,450 crore as unpaid AGR dues from the telecom company. As much as Rs 2,774 crore out of the total dues were applicable on the erstwhile Idea Group and Rs 6,675 crore against Vodafone Group.

One of the key reasons behind the telecom sector stock’s rally include the Supreme Court's ruling paving a potential policy-level resolution for the telecom company’s financial burden. This in turn led to optimism among investors regarding the resolution of the dispute.

Vodafone Idea Share Price History

Shares of Vodafone Idea have traded in the green in the past one year. In the past one year Vodafone Idea share price has climbed nearly 23 per cent. On a year-to-date basis Vodafone Idea shares have climbed more than 25 per cent on the NSE.

In six months shares of Vodafone Idea have surged over 37 per cent and in the past one month the stock has traded higher by nearly 14 per cent. In the past five days Vodafone Idea shares have gained 10.41 per cent.

Vodafone Idea shares closed at Rs 10.07 apiece on the NSE up by 4.68 per cent on the NSE on October 27.