Shares of Vodafone Idea Ltd jumped as much as 10% on Monday, hitting their highest levels since September 2024, after the Supreme Court allowed the Indian government to reassess the company’s adjusted gross revenue (AGR) dues.
The telecom stock crossed ₹10.50 per share in afternoon trade, reflecting renewed optimism over the company’s financial revival prospects.
The development follows Vodafone Idea’s recent petition challenging the Department of Telecommunications’ (DoT) demand for an additional ₹9,450 crore in AGR dues. The apex court clarified that any relief for the company will fall under the government’s policy discretion.
Earlier this year, the Indian government became the largest shareholder in Vodafone Idea, holding a 49% stake through a debt-to-equity swap, signaling its intent to support the financially stressed telecom operator.
The Supreme Court’s order is seen as a significant breather for the company, paving the way for a potential restructuring of its AGR liabilities and reducing the immediate risk of bankruptcy.
However, Vodafone Idea continues to face major challenges, including high debt levels and a shrinking subscriber base. According to the latest TRAI data, the telecom firm lost over 3 lakh mobile users in August, highlighting ongoing operational pressures.
While the ruling boosts investor sentiment, the company’s full turnaround will depend on key factors such as subscriber retention, ARPU (average revenue per user) growth, and fresh capital infusion.
For now, Vodafone Idea’s revival story hinges on the government’s next steps regarding AGR relief and its ability to stabilize core business metrics.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are advised to perform their own due diligence or consult a financial advisor before making any investment decisions.
