Shares of Vodafone Idea fell over 4% on Monday as the Supreme Court is expected to deliver a verdict on its plea against the additional adjusted gross revenue (AGR) dues. The SC had deferred its order twice last month.

The hearing was first deferred on September 19 when the Centre said it did not oppose Vodafone Idea's plea but sought a resolution since it holds a stake in the company. The matter was adjourned to September 26 by the court. 

At the September 26 hearing, Solicitor General Tushar Mehta, appearing for DoT, sought an adjournment, after which the matter was listed for October 6.

The petition of Vodafone Idea questions DoT's additional demand of ₹9,450 crore towards AGR, saying it was not a part of the SC order on AGR liabilities. The DoT has argued that the additional dues stemmed from accounting gaps rather than reassessment. 

The liabilities include ₹2,774 crore related to FY18–19 dues post-merger and ₹5,675 crore tied to pre-merger Vodafone Group accounts. The company has requested a fresh reconciliation starting from the pre-2017 period.

Government's Position

In August, Minister of State for Communications Chandra Sekhar Pemmasani said that the government had no plans to extend fresh relief to the company. 

He said that with the 2021 relief package, where ₹53,000 crore of dues were converted into equity, the government had already taken its measures. The Centre currently holds a 49% stake in Vodafone Idea but is not classified as a promoter.

Fundamental VIew

According to SEBI-registered investment advisor Cashvisory, Vodafone Idea's first quarter (Q1) performance reflected improving operating efficiency alongside persistent funding challenges. 

Revenue stood at ₹110.2 billion, up 4.9% year-on-year, while EBITDA reached ₹46.1 billion with a margin of 41.8%. Average revenue per user rose 14.9% to ₹177.

Network And Subscriber Metrics

Cashvisory noted that the telecom operator's 5G rollout covered 22 cities, while 4G coverage expanded to around 84% with the addition of 4,800 new towers and 13,100 Massive MIMO sites. 

The firm highlighted that churn had fallen to 0.5 million, the lowest since the merger, and that 5G adoption stood at 60–70% in rollout cities.

The digital push through Vi Finance, OTT aggregation, and partnerships in IoT and enterprise segments, including a 10-year smart metering deal for five million meters, were identified as positives.

Debt And Funding Outlook

Cashvisory pointed out that the company's debt position remained concerning, with ₹19.3 billion in bank debt and deferred liabilities totaling ₹1.95 trillion, including ₹760 billion in AGR dues and ₹1.19 trillion in spectrum liabilities. 

The firm added that Vodafone Idea's H2 capex acceleration would depend on funding clarity and AGR resolution, even as subscriber metrics continued to improve.

What Is The Retail Mood?

On Stocktwits, retail sentiment was 'bullish' amid 'normal' message volume.

Vodafone's stock has risen 5.5% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

MENAFN06102025007385015968ID1110153940