Vodafone Idea Shares Tank 5% After AGR Waiver Plea Reaches Supreme Court; Analysts Warn of More Downside

Vodafone Idea shares today fell 5% at the opening bell of the stock market on on Monday, May 19, after the company filed a case in the Supreme Court of India. The telecom operator is asking the court to help them get relief from paying over USD 5 billion in interest and penalties related to old government dues.

Vodafone Idea Share Price Today

Vodafone Idea shares today opened at Rs 7.19 on Monday, down 3.66% from Friday's closing price of Rs 7.37 on the NSE. As of 9:30 AM Vodafone shares were trading at Rs. 7.00 after falling 5%.

Vodafone Idea shares had shown strength last week, ending the week with a 6% overall gain. However, so far in 2025, the Vodafone Idea stock price down approximately 11%.

Vodafone Idea's Request Rejected by Government

Recently, Vodafone Idea's CEO Akshaya Moondra had asked the Department of Telecommunications (DoT) to waive some of the company's huge dues. These dues come from a total demand of USD 9.76 billion, which includes interest and penalties.

But on April 29, the telecom ministry replied saying that "the request cannot be considered", even though the CEO said that without help, the company might not survive, as per a Reuters report. Post that the telecom company filed a case in the Supreme Court the hearing of which is expected this week.

What Is the AGR Case All About?

As per reports, In 2019, the Supreme Court gave a ruling that changed the way telecom companies calculate their revenue (called Adjusted Gross Revenue or AGR). Because of this change, companies like Vodafone Idea had to pay large amounts of extra dues to the government.

While other companies like Bharti Airtel managed to pay their dues and continue strong, Vodafone Idea is still under financial stress.
Even though the government converted part of Vodafone Idea's dues into shares, making the government a 49% owner in the company, Vodafone Idea still has huge debt. According to reports, the company's net debt was about USD 25 billion as of September last year, as per a TOI report. The company hasn't said exactly how much waiver they want, but the court petition shows that over $5 billion is just interest and penalties.

Take a Poll

Vodafone Idea is currently India's third-largest telecom operator, behind Reliance Jio and Bharti Airtel. However, the company is in deep trouble financially. This court case could be a turning point.

If the Supreme Court gives some relief, Vodafone Idea may get the breathing space it needs to stay in business. Otherwise, the company could find it hard to survive in the long run.

Vodafone Idea Shares Target Price: Should you BUY/SELL/HOLD?

The Vodafone Idea stock price may react to the Supreme Court case. If the court supports the company, it could bring some relief and boost investor confidence. But if the case goes against the company, it may struggle even more.

According to a recent Vodafone Idea stock recommendation by Motilal Oswal Financial Services, investors should be cautious.
The broking has issued a 'Sell' rating on Vodafone Idea stock. In its latest research report, Motilal Oswal recommends selling Vodafone Idea shares at the current market price (CMP) of Rs 7, with a target price (TP) of Rs 7, indicating limited upside and a downside risk of around 3% from current levels.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor GoodReturns. The author, nor the brokerage firm nor GoodReturns would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.