Mumbai — Shares of Vodafone Idea Ltd (Vi) slipped in late-morning trade on Friday as investors braced for the Supreme Court hearing on adjusted gross revenue (AGR) dues, a long-running legal overhang for the debt-laden telecom operator.
At stake is around ₹9,450 crore in unpaid AGR dues, a liability that has shaped the company’s survival prospects and weighed on the broader telecom pack.
Why the Stock is Under Pressure
Vodafone Idea has been struggling with a stretched balance sheet and intense competition from rivals Reliance Jio and Bharti Airtel. The AGR case remains one of the most critical risks for the company, with traders cautious about whether the apex court signals any relief or presses for faster recovery of dues.
Friday’s move saw the stock fall as much as 3–4% intraday, dragging sentiment across the telecom sector. Market participants say any adverse commentary from the courtroom could amplify downside risks.
The AGR Overhang
The AGR dues stem from a long legal battle over how telecom revenues should be defined for calculating government license fees. Despite earlier verdicts, payment schedules and final reconciliations remain under scrutiny.
For Vi, the outcome of the case is pivotal:
- A stricter payment timeline could tighten its already fragile liquidity.
- Any relaxation could offer much-needed breathing space and boost investor confidence.
Investor Sentiment
Analysts note that investors are reluctant to take fresh positions in Vi until there is greater clarity from the Supreme Court. The AGR dues are a make-or-break issue for Vodafone Idea, one dealer at a domestic brokerage said. Until the court provides direction, traders will likely sell into strength.
Beyond Vodafone Idea, telecom peers are also on watch as sector-wide regulatory risks remain elevated. Airtel and Jio are seen better placed, but the courtroom signals could still shape sector mood.
Outlook
The AGR hearing is expected to continue through the day, and updates from the proceedings will drive near-term stock action. For Vodafone Idea, clarity on dues and timelines is critical not only for survival but also for attracting new funding.
Until then, volatility in the stock is likely to persist, with traders watching courtroom cues minute by minute.
