Vodafone Idea shares jump ~9% after Supreme Court hearing on fresh ₹9,450-cr AGR demand

Shares of Vodafone Idea (Vi) rose roughly 9% in early trade on Friday after developments in the company’s challenge to a fresh adjusted gross revenue (AGR) demand in the Supreme Court. The market reaction followed the Centre telling the court it did not oppose Vi’s plea and asking for time to work out “some solution,” and the top court deferring the matter for further hearing.

Investors pushed the stock higher on hopes that a judicial or policy resolution could ease the telecom firm’s liabilities and improve its near-term outlook. Several outlets reported intraday gains in the high single digits to low double digits as traders reacted to the Supreme Court proceedings.

At the heart of the dispute is a fresh demand from the Department of Telecommunications (DoT) of about ₹9,450 crore that Vi has challenged in the Supreme Court, saying parts of the demand duplicate amounts already covered by earlier rulings. The court paused further proceedings and listed the case for a fresh hearing, giving the Centre time to firm up its position.

During the hearing, the Solicitor General and other government representatives told the bench that the Centre is not opposing the operator’s petition outright and said “some solution may be required,” noting the wider public interest and the government’s own stake in the company. The Supreme Court asked the Centre to bring a sense of finality to the issue and fixed a further hearing date.

Background: Vodafone Idea has been under severe financial pressure since the AGR-related liabilities widened after the 2019 Supreme Court ruling. Earlier this year the government converted a portion of dues into equity, increasing its stake in the company to just under 49%, a move intended to stabilize the operator while keeping it in private hands. Any judicial outcome or further policy step on the fresh ₹9,450-cr demand will be closely watched by markets and regulators alike.

What to watch next

Next Supreme Court listing and any formal proposal the Centre presents in court.

DoT’s detailed calculations and Vi’s counter-submissions on the alleged duplication in the fresh demand.

Market reaction when the case resumes — traders will price any explicit government or judicial relief into the stock.