Vodafone Idea’s share price declines 4% to a low of Rs 7.07 after the company sought the Supreme Court’s help for waiver of Rs 45,457 crore in adjusted gross revenue (AGR)-related dues.
The telecom operator approached the Supreme Court and petitioned to waive off its annual AGR payments of Rs 18,000 crore as it cannot meet that by FY26. The annual AGR payment is almost twice its current operational cash generation of Rs 9,200 crore.
The company has already paid around Rs 8,000 crore. It says that without relief, it won’t be able to keep the operations going ahead of FY26.
As of March 31, 2025, Vodafone’s total AGR liability stood at Rs 83,400 crore. This includes an interest of Rs 28,294 crore, penalties of Rs 6,012 crore, and a penalty on non-payment of interest of Rs 11,151 crore.
Vodafone has said in its petition to the SC that the compounded charges are financially crippling and that it is not even contesting for the principal amount.
Looking back at the previous cases like Reliance Communications and Aircel, officials observed that the development once again highlights that the insolvency framework is inadequate to resolve the challenges. As the previous attempts were stuck in the legal and regulatory framework.
The company is yet to announce its quarterly results for the fourth quarter of the financial year 2024-25.
Vodafone Idea Q3 earnings
The company reported a net loss of Rs 6,609.3 crore for Q3FY25, bringing it down from a loss of Rs 7,175.9 crore in the previous quarter. Its revenue from operations rose 1.7% sequentially to Rs 11,117.3 crore in Q3FY25, compared with Rs 10,932.2 crore in Q2FY25, on the back of an increase in average revenue per user (ARPU). The company’s ARPU improved to Rs 173 from Rs 166.
Vodafone Idea’s stock performance
Vodafone Idea’s share price has erased 45% of investors’ wealth in the previous one year. The stock has given a return of 9% in the previous one month and 3.5% in the last six months. The share price of Vodafone Idea has risen 5.5% in the last five trading sessions. Also, in the list of telecom stocks, Vodafone Idea’s share price fell the most.