Why Vodafone Idea Share Price is Falling

It was a volatile start to the week for Dalal Street. The Sensex ended 173 points lower, while the Nifty slipped 58 points to end at 25,227 points.

However, both benchmark indices recouped losses in the last hour, supported by positive global cues and buying in select banking, financial, and realty stocks. The Sensex, which had dropped 451.82 points to 82,049 in early trade, ended the day at 82,327 points. Similarly, the Nifty climbed back above the 25,200 mark.

In a volatile market, one stock that caught attention on Dalal Street was Vodafone Idea (VI).

The stock fell over 3% in the trade. Here's Why.

# AGR Plea Deferment

Vodafone Idea Ltd (VIL) shares slipped over 3% on 13 October after the Supreme Court deferred the company's plea against the government's additional AGR demand to 27 October, 2025.

The deferment came following a request from Solicitor General of India, Tushar Mehta, representing the Centre. This marks the fourth time the hearing on Vodafone Idea's AGR plea has been postponed.

Timeline of Delayed Hearings:

• 19 September: The Centre stated it did not oppose Vodafone Idea's plea but noted the need for a solution, as it too holds equity in the firm. The Supreme Court deferred the hearing to 26 September, seeking finality in proceedings.
• 26 September: Solicitor General Tushar Mehta requested more time, which Vodafone Idea did not object to. The court rescheduled the hearing for 6 October, 2025.
• 6 October: The Supreme Court adjourned the plea to 13 October at the government's request. Vodafone Idea's counsel said the company had no objections, jokingly noting, "We want to celebrate Diwali this year."
• 13 October: The Centre requested additional time again, and the court has now set the hearing for 27 October after Diwali.

VIL had filed the fresh plea against the Department of Telecommunications' (DoT) demand of Rs 56.1 billion (bn) for FY 2016-17.

Earlier, the Centre indicated efforts were underway to reach a resolution with the company. Vodafone Idea seeks a direction for the DoT to "comprehensively re-assess and reconcile" all AGR dues up to FY 2016-17 in line with the Deduction Verification Guidelines dated 3 February 2020.

AGR Plea and Centre's Stance

Vodafone Idea has approached the Supreme Court challenging the Department of Telecommunications' (DoT) demand for an additional Rs 94.5 bn in AGR dues, arguing that it exceeds the scope of the court's 2019 ruling on AGR liabilities.

The DoT, however, maintains that the additional dues arise from a "gap" in previous accounting, not a reassessment, and are outside the 2019 judgment.

Of the total, Rs 27.7 bn relates to FY18-19 dues of the merged Vodafone Idea and Idea entities, while Rs 56.8 bn pertains to pre-merger Vodafone Group dues.

Vodafone Idea has contested some amounts as duplicated and has requested a fresh reconciliation dating back to pre-2017.

The Centre, India's largest stakeholder in Vodafone Idea with a 49% equity stake, has made it clear that it does not plan to provide further relief.

Minister of State for Communications Chandra Sekhar Pemmasani stated that the government's support, including the 2021 equity conversion of around Rs 530 bn, has already been extended, and the company must now manage its affairs independently.

Telecom Minister Jyotiraditya Scindia also clarified that there are no plans to convert Vodafone Idea into a public sector undertaking (PSU).

Recent developments

# One Time Settlement in Works

According to Bloomberg report dated 6 October, India is exploring a one-time settlement for Vodafone Idea's long-pending AGR dues, aiming to ease tensions and strengthen ties with the UK.

The potential deal could involve waiving interest and penalties, along with some concessions on the principal amount.

Officials are reportedly working on the framework while making sure the settlement doesn't trigger legal challenges from other telecom operators with pending AGR payments.

Vodafone Idea currently owes about Rs 834 bn in AGR liabilities, with annual payments of Rs 180 bn commencing this March. Including penalties and interest, its total liabilities are estimated at nearly Rs 2 trillion (tn). The company has admitted that its cash flows are inadequate to meet these obligations.

What Next?

While rivals like Airtel, Jio, and even BSNL are aggressively expanding their 5G networks nationwide, Vodafone Idea (Vi) has taken a different approach.

The company is focusing on its 2G user base, aiming to strengthen its core market and boost average revenue per user (ARPU). Though Vi has introduced 5G in select cities, its overall subscriber base continues to decline gradually.

At the India Mobile Congress, Vi's Chief Marketing Officer, Avneesh Khosla, highlighted that a significant portion of Indian mobile users still rely on 2G handsets due to affordability.

Basic 2G phones cost around Rs 700-800, whereas 4G and 5G smartphones start at Rs 6,000, leaving millions priced out of next-gen devices. Around 4 m 2G phones are sold in India every month, underscoring the continued demand for simple, reliable connectivity.

That said, the company is not ignoring next-generation networks entirely. Vi plans to expand 5G services to 29 cities across 17 key circles in the coming months, with a gradual rollout focused on areas with higher 4G and postpaid user concentration.

How Shares of Vodafone Idea have Performed Recently

Over the last one month, the share price of Vodafone Idea has gained 6% moving from levels of Rs 8.14 to the current levels of Rs 8.69. However, the stock fell 3.8% today.

In the past one year, shares of the company lost 4%.

The stock hit a 52-week high of Rs 10.48 on 20 January 2025. The stock also hit a 52-week low of Rs 6.12 on 14 August 2025.

About Vodafone Idea

Vodafone Idea is an Aditya Birla Group and Vodafone group partnership. It's among India's leading telecom service providers.

The company provides pan India voice and data services across 2G, 3G, and 4G platforms.

On 31 August 2018, Vodafone India merged with Idea Cellular, to form a new entity named Vodafone Idea. Vodafone holds a 45.1% stake in the combined entity and Aditya Birla Group holds a 26% stake.

For more details about the company, you can have a look at Vodafone Idea's factsheet and Vodafone Idea's quarterly results on our website.

Here are some peer group comparisons of Vodafone Idea:

Vodafone Idea vs Bharti Airtel

Vodafone Idea vs Tata Communications

Vodafone Idea vs MTNL

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