Shares of Indus Towers Ltd. are locked in a 10% lower circuit on Thursday, marking their biggest single-day drop since June 4.

The share decline followed the Supreme Court ruling in the Adjusted Gross Revenue (AGR) case. The apex court upheld the AGR ruling against the telecom companies and upheld the quantum of the AGR demand.

Vodafone Idea’s AGR dues currently stand at ₹70,300 crore.

In a note on September 6, global brokerage firm Goldman Sachs had downgraded Indus Towers to ‘Sell’ from its earlier rating of ‘Neutral’ citing that the re-rating for the stock is ‘overdone’.

At the current price, Indus Towers shares are implying a sustained 8% to 10% EBITDA growth at least till financial year 2030, which Goldman Sachs believes is “unlikely.”

The market also appears to be pricing in upsides to capex from telecom companies and to their free cash flow arising out of any potential reduction in AGR dues, along with a potential upside to Indus Towers’ reported merger with Bharti Airtel’s data center business, both of which are premature, Goldman Sachs had written on September 6.

Shares of Indus Towers are currently trading 10% lower at ₹384.80. Despite the decline, the stock has almost doubled in value for this year, still up 90%. The stock is down 16% from its record high levels of ₹460.