Vodafone Idea moves top court against AGR dues, seeks recalculation: Key points to know

Vodafone Idea NSE BSE Stock Price News: Private sector telecom service provider Vodafone Idea took centre stage on Dalal Street on Wednesday, after the company moved the Supreme Court over its adjusted gross revenue (AGR) dues owed to the central government's telecom department. The telecom firm filed a fresh appeal in the top court, seeking recalculation in the matter. 

The company's plea challenges the Department of Telecommunications' additional demand amounting to Rs 9,450 crore till FY27. 

In its plea, Vodafone Idea has also urged early hearing in the matter and requested a reversal of the telecom department's additional Rs 9,450 crore demand.

The development comes amid growing concerns about Vodafone Idea's debt pile and pending AGR dues.

Vodafone Idea AGR Case | What is the matter? Here's a quick take 

The matter dates back to the Supreme Court’s 2019 ruling that broadened the definition of AGR to include non-telecom revenues, increasing Vodafone Idea's liability.

Appeals from telecom service providers such as Vodafone Idea seeking relief through revaluation or waiver have since been rejected. 

Vodafone Idea has challenged the telecom department's calculation method while requesting a comprehensive reassessment and reconciliation of all AGR dues.

In May this year, the apex court dismissed the telecom firms' pleas as “misconceived".

Vodafone Idea has already stated that it may be unable to continue operations beyond FY26 without relief. This is as bank funding remains elusive under the current debt burden.

Currently, a moratorium on AGR payments ends this month. Also, from this year onwards, Vodafone Idea must pay roughly Rs 18,000 crore in dues annually.

The AGR matter highlights Vodafone Idea’s ongoing legal struggle to reduce its AGR liabilities and secure financial stability amid regulatory challenges.

Vodafone Idea shares

On Wednesday, Vodafone Idea shares rose 0.8 per cent to end at Rs 7.3 apiece on BSE.

The stock has declined 8.1 per cent so far this year, worse than a 1.1 per cent dip in the BSE Telecom index. 

Most analysts are divided about the Vodafone Idea stock at the current juncture. 

Motilal Oswal Financial Services has a 'sell' rating assigned to the telecom stock with a target price of Rs 6. 

ICICI Securities has a 'hold' call with a target price of Rs 7.