AGR Review in Vodafone Idea Case: New Delhi: India’s highest court has opened the door for the government to take another look at the long-standing dispute over adjusted gross revenue payments involving telecom giant Vodafone Idea. This comes as a potential lifeline for the company, which has been grappling with huge financial demands from regulators.
The Supreme Court bench, led by Chief Justice B.R. Gavai and Justice K. Vinod Chandran, made the call during a session on October 27, 2025. They stressed that the matter ties closely to public policy choices, especially since the government now holds a major stake in Vodafone Idea—around 49 percent through converted debts—and the firm serves over 200 million customers across the country. “We see no barrier to the central authorities rethinking this and taking suitable steps, given the current setup,” the bench noted, pointing to the direct impact on everyday users.
Solicitor General Tushar Mehta, speaking for the government, highlighted shifting conditions in the telecom world and expressed willingness to explore options without reopening full calculations. He suggested that with court approval, adjustments could be made to ease the burden. Vodafone Idea had challenged a fresh claim of about 9,450 crore rupees from the Department of Telecommunications for the 2016-17 period, arguing it went against a 2019 ruling that had already settled such dues.
This development marks a shift from earlier rejections of similar requests by other operators. It could lead to a fairer handling of the roughly 83,400 crore rupees in total AGR liabilities hanging over Vodafone Idea, helping stabilize the sector amid fierce competition and debt woes.
Markets reacted swiftly to the news. Vodafone Idea shares climbed nearly 10 percent, touching 10.25 rupees with a daily peak of 10.57 rupees. Trading volume hit over 2.1 billion shares, pushing the market value to about 109,643 crore rupees. Over the past week, the stock has risen 13 percent, with gains of 25 percent in the last month and 40 percent in three months. Year-to-date, it’s up 27 percent, 31 percent over one year, and 17 percent across three years, with a 52-week range from 9.28 to 10.57 rupees.
The positive vibe spread to peers too. Indus Towers shares gained around 5 percent, while Bharti Airtel edged up about 3 percent in early trade on October 27. This ruling underscores the court’s focus on balancing revenue rules with the need for a healthy telecom network that reaches millions.
