Telecom giants Bharti Airtel Ltd., Vodafone Idea Ltd., and Indus Towers Ltd. came under renewed investor focus after the Supreme Court’s latest verdict on Adjusted Gross Revenue (AGR) dues. Analysts say the ruling offers limited relief for Vodafone Idea and no respite for Bharti Airtel.
Supreme Court Allows Centre to Reconsider Vodafone Idea’s AGR Dues
In a crucial development, the Supreme Court has permitted the central government to reconsider issues related to Vodafone Idea’s AGR dues for the period up to FY2016–17, offering a potential breather to the debt-laden telecom operator.
However, Point 7 of the order clarified that any relief package from the government can only be extended to Vodafone Idea, and not to other telecom operators — a stance viewed as negative for Bharti Airtel, which still faces AGR liabilities of ₹40,000–₹50,000 crore.
For Vodafone Idea and Indus Towers, Point 6 of the order specified that any claim is restricted only to the additional AGR demand raised for the period up to FY2017.
Analysts See Limited Scope for Relief
Experts believe that even if relief is granted, it would apply only to the newer AGR demand — estimated at ₹9,450 crore — which accounts for just 12% of Vodafone Idea’s total AGR dues and around 5% of its overall debt.
Market participants said the judgment dampens hopes of broad-based relief for the telecom industry and reignites concerns over high debt and ongoing regulatory uncertainty.
Court Clarifies Policy Role
The Supreme Court stated that, given the “peculiar facts and circumstances” of the case, there would be no impediment to the Centre reviewing the issue and taking a fresh decision in line with the law.
The bench emphasized that the matter falls within the policy domain of the Union government, noting:
“As per the peculiar facts and circumstances of the case, the Union of India, keeping in view the larger public interest, desires to reconsider the issue. There is no reason to restrain or prevent it from doing so,” the order stated.
Vodafone Idea’s Plea and Background
In September, Vodafone Idea sought a waiver of penalty and interest on an AGR demand of ₹9,450 crore raised by the Department of Telecommunications (DoT). The company argued that a substantial portion of the demand pertains to the pre-FY17 period, already settled by the Supreme Court’s 2020 ruling.
According to reports, of the total dues:
- ₹2,774 crore relates to the post-merger Vodafone Idea entity, and
- ₹5,675 crore pertains to the pre-merger Vodafone Group liabilities.
Government Now Vodafone Idea’s Largest Shareholder
The Indian government became the largest shareholder in Vodafone Idea after converting ₹36,950 crore worth of outstanding spectrum auction dues into equity in March 2025.
Earlier, in 2023, the government had already acquired a 33% stake in the company by converting statutory dues worth over ₹16,000 crore into equity.
Outlook
While the verdict provides narrow relief to Vodafone Idea, analysts warn that the decision does little to address the larger financial stress within India’s telecom sector. Bharti Airtel, meanwhile, continues to grapple with significant AGR exposure and limited policy support.
