Abhishek SinhaAfter the Supreme Court granted Vodafone Idea relief by allowing the government to reassess adjusted gross revenue (AGR) dues up to FY17, Bharti Airtel is now preparing to approach the Department of Telecommunications (DoT) for a similar review.
Airtel to Seek Equal Treatment
Confirming the move, Gopal Vittal, Vice Chairman and Managing Director of Bharti Airtel, told analysts during the company’s Q2 earnings call:
“We welcome the Supreme Court’s decision permitting the government to reassess and reconcile AGR dues, including interest and penalties, up to FY2016–17. While the order was passed in Vodafone Idea’s case, we plan to take up our matter with the government as well.”
Vittal reiterated that Airtel had long argued that the 2019 AGR judgment was a “body blow” to the telecom sector, adding that the court’s earlier refusal to entertain even calculation errors had been “deeply disappointing.”
What Is AGR and Why It Matters
AGR represents the share of a telecom operator’s total revenue that is considered for regulatory levies.
Telcos currently pay 8% of their AGR as license fees, which includes a 5% contribution to the Digital Bharat Nidhi fund.
The Supreme Court’s latest clarification allows the government to re-examine Vodafone Idea’s dues up to FY17, including the computation of interest and penalties — offering a significant breather to the financially stressed operator.
However, this relief applies only to Vodafone Idea, as Airtel and other telcos did not file petitions challenging their own AGR assessments for that period.
Airtel’s AGR Exposure and Relief Request
Airtel’s outstanding AGR dues are estimated at around ₹40,000 crore. In April, the company had requested the DoT to convert its dues into equity, which could give the government a 3–4% stake in Airtel.
At the time, Vittal had emphasized the need for “non-discriminatory, level-playing options” across operators — hinting that Airtel should have the same reassessment opportunity now extended to Vodafone Idea.
Airtel’s Strong Q2 Performance
Despite the ongoing AGR issue, Airtel posted robust results for the September 2025 quarter:
- Revenue: ₹52,145 crore (↑25.7% YoY, ↑5.4% QoQ)
- Net Profit: ₹6,792 crore (↑89% YoY, ↑14% QoQ)
- Growth driven by:
- Strong data consumption
- Premium mobile service expansion
- Recovery in enterprise business (Airtel Business)
- Lower finance costs and improved joint venture performance
The Road Ahead
If the government agrees to Airtel’s reassessment plea, it could reduce its financial liability substantially, providing an industry-wide precedent for fair treatment in AGR calculations.
However, the final call rests with the DoT, which will weigh the legal and fiscal implications of extending Vodafone Idea-like relief to other operators.
