In a significant setback for Vodafone Idea (Vi), the company’s shares tumbled by 8.68% on Monday, closing at ₹6.73 on the Bombay Stock Exchange. The decline followed the Supreme Court’s dismissal of Vi’s plea seeking relief from adjusted gross revenue (AGR) dues.
Supreme Court Labels Appeals ‘Misconceived’
A bench comprising Justices J.B. Pardiwala and R. Mahadevan rejected the petitions filed by Vodafone Idea, Airtel, and Tata Teleservices, describing them as “misconceived.” The court’s decision reinforces earlier judgments mandating telecom operators to fulfill their AGR liabilities in full.
Financial Strain Intensifies for Vodafone Idea
The Supreme Court’s ruling exacerbates the financial challenges faced by Vodafone Idea. The company has previously warned the Department of Telecommunications (DoT) that, without government support, it may not sustain operations beyond the fiscal year 2025-26. Ongoing negotiations with banks for essential funding are at risk, further jeopardizing the company’s financial stability.
Market Reaction Reflects Investor Concerns
The market’s response underscores investor apprehension regarding Vodafone Idea’s future. The stock’s sharp decline reflects concerns over the company’s mounting debts and the absence of regulatory relief.
