The Supreme Court has rejected the plea filed by telecom companies, including Bharti Airtel and Vodafone Idea, for the re-computation of Adjusted Gross Revenue (AGR) dues. This ruling comes as a major setback for the telcos, which had argued that there were significant errors in the calculation of their AGR dues by the Department of Telecommunications (DoT).
The curative petition filed by the telcos was aimed at addressing these alleged errors, but the Supreme Court dismissed their request, leaving the original dues intact. Vodafone Idea and Bharti Airtel, two of the companies most affected by the AGR judgment, had hoped for some relief through this plea, but the court has stood firm on its earlier decision.
As a result of the ruling, telecom stocks, particularly Vodafone Idea, took a significant hit in the market. The Vodafone Idea stock plummeted and hit a 10 percent lower circuit at ₹12.11 on the National Stock Exchange (NSE).
Broader Market Impact
The Supreme Court’s decision also had a ripple effect on other related stocks:
- Indus Towers: Shares fell by 10%, trading at ₹385.45.
- KEI Industries: Down 3%, with shares trading at ₹4,368.05.
- Tata Communications: Shares dropped by 1.72%, trading at ₹1,960.70.
- Finolex Cables: Fell by 1.34%.
The ruling adds to the ongoing challenges faced by the telecom industry in India, particularly for Vodafone Idea, which is already burdened with financial instability and high levels of debt. Investors will now closely monitor the financial strategies these companies adopt to deal with their AGR dues and maintain operational sustainability.
