Vodafone Idea Shares Fall by 5% In a Single Day After Supreme Court Verdict on AGR Dues

Shares of Vodafone Idea (VIL) have rallied higher lately as the troubled telecom stock has soared nearly 72 per cent in the last 6 weeks. The shares of telecom operator player today fell by 5% after reaching a high of 10 rupees yesterday.In the recent hearing over AGR issue, Supreme Court (SC) permitted the Union government (GoI) to re-examine the AGR verdict as GoI now holds 49 per cent equity stake in Vodafone Idea and aims to prevent any disruption in services for its 20 crore customers. The SC observed that any decision regarding AGR relief lay within the policy domain of the Union, thereby clearing the way for the GoI to extend such relief.

Shares of Vodafone Idea opened  at Rs 10.08 on Tuesday, rising nearly a per cent at the opening tick. The company commanded a total market capitalization close to Rs 1.10 lakh crore. The stock hit its 52-week high at Rs 10.57 on Monday, before settling at Rs 9.44 for today. It has soared more than 72 per cent from its 52-week low at Rs 6.12, hit in August 2026, six weeks ago. Following the verdict, analysts have turned more positive on Vi’s prospects. Motilal Oswal Financial Services upgraded the stock from ‘Sell’ to ‘Neutral’, raising its target price to Rs 10 per share from Rs 6.5 earlier.

Global brokerage Citi also sounded upbeat, maintaining a ‘high-risk buy’ rating with a target of Rs 10, saying the judgment could have “significant positive ramifications” for both Vi and its tower partner Indus Towers. It expects any relief to come well before Vi’s next major payment deadline in March 2026 — possibly paving the way for new credit lines and even an equity raise that could reduce the government’s stake over time.Brokerages say the ruling could also have sector-wide implications, underscoring the government’s intent to maintain a “3+1” telecom market structure — with three private players and one public operator. Relief for Vi could, in turn, improve sentiment for Indus Towers and set the stage for fresh capital expenditure in the range of Rs 50,000–55,000 crore. Still, analysts remain cautious. Much depends on how the government structures the relief package and whether it extends any similar benefit to other telecom firms such as Bharti Airtel and Hexacom.