Vodafone Idea Ltd shares traded lower on May 20, slipping 0.45% to ₹6.70 at 10:15 AM on the NSE. The stock opened flat at ₹6.70, reached an intraday high of ₹6.78, and touched a low of ₹6.62 before stabilising.
The previous closing price stood at ₹6.73, and the volume-weighted average price (VWAP) hovered around ₹6.69. Despite minor fluctuations, the stock remains near its 52-week low of ₹6.46, significantly below its 52-week high of ₹19.15.
The Supreme Court has rejected petitions filed by leading telecom operators including Vodafone Idea, Bharti Airtel, and Tata Teleservices, which sought relief from interest and penalties associated with Adjusted Gross Revenue (AGR) dues.
The apex court firmly dismissed the pleas as “misconceived,” maintaining its earlier judgment that telecom companies are liable to pay the full dues as calculated, including interest and penalties.
Vodafone Idea remains one of the most financially strained telecom players, with AGR dues mounting to approximately ₹83,400 crore.
The latest court verdict dashes hopes of any significant reduction in this burden, adding pressure to the company’s already stressed balance sheet. The unresolved dues continue to weigh heavily on investor sentiment and the company’s future viability.
The company had specifically appealed for a waiver of around ₹45,000 crore, which included interest, penalties, and interest on penalties. This waiver was seen as critical for easing the company’s liquidity constraints.
In its plea, Vodafone Idea warned that it might not be able to continue operations beyond the fiscal year 2025–26 if the waiver was not granted. The company’s future now appears increasingly uncertain, especially without meaningful government or investor support.
The government’s four-year moratorium on AGR payments is scheduled to end in September 2025. Post-moratorium, Vodafone Idea will be required to make annual payments of around ₹18,000 crore for six years.
This amount far exceeds the company’s current annual operational cash flow, posing a serious threat to its solvency unless fresh funding or a revenue breakthrough occurs.
Read More: Vodafone Idea Warns of Imminent Insolvency Without Government Support.
Vodafone Idea’s continued stock decline reflects investor concerns following the Supreme Court’s firm stance on AGR dues. With no relief in sight and a massive financial burden looming, the company’s future remains uncertain. As the moratorium nears its end, Vodafone Idea must urgently secure funding or risk deeper operational and market challenges.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: May 20, 2025, 10:28 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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