In the previous episode of No. 1 Kodalu, Sarsu refuses to stay with anyone in the village. When Rahul and Teja try to talk to Peddayyina about the fields, the lawyer comes and talks about Sarsu’s condition. They go and meet Sarsu, where Peddayyinna offers her to come and stay in his house. But Sarsu refuses to do it. Rahul gets annoyed because once again, Sarsu ruined his moment. Vagdevi distributes medals in the college, and realises that one of the students, who was offered a free seat isn’t present. Upon speaking to her, she finds out that her grandfather hasn’t been well. But Vagdevi takes her reason to be an excuse, for missing college.
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In the upcoming episode, Vagdevi meets a girl in the school and threatens to take away her scholarship if she does not perform well. The girl begs her to give her one more chance and touches her feet.