The primary trigger for today’s decline is the Supreme Court’s rejection of Vodafone Idea’s plea seeking relief on its Adjusted Gross Revenue (AGR) dues. The court not only denied the request but called the plea ‘shocking’ and ’misconceived’. This legal blow leaves the company liable for its full AGR liability.
As of March 31, 2025, Vodafone Idea’s total AGR dues amounted to Rs 83,400 crore, including interest and penalties. These dues are nearly twice the company’s annual operational cash flow. Thus, casting doubts over its ability to continue operations without external support.
Adding to the woes, investor sentiment has turned more negative following the verdict. The share has already fallen over 10% in the previous session, with continued pressure evident today. The stock’s proximity to its 52-week low has only deepened investor pessimism.
Other concerns include low capital expenditure compared to rivals, a high net-debt-to-EBITDA ratio, and no immediate signs of a turnaround. Analysts remain doubtful about the company’s survival without major financial intervention.
