Vodafone idea ltd has been discussions with the government to explore a resolution on the telecom operator’s substantial dues, barely two weeks after the superame counte On related payments.
The Struggling Company is also engaged with banks to secure debt funding for its long-term expansion, Chief Executive Akshaya Mondra Said, Adding that adding that Banks WONKS WONKS WONT CHET CHET CHET CHET CHALLD TELCO Owes to the government before they agree to lend.
But it is not preventing the discusations from moving forward, Moondra said.
“I see no reason why the government should be constrained in any way to offer relife…,” Moondra said on monday during a call with analysts to discus vodafone idea ‘
Vodafone idea is set to incur capital expert of 5,000-6,000 Crore for the First Half of 2025-26 to enhance its network and infrastructure. However, its next leg of spending would be dependent on funds from banks, Moondra said.
The Supreme Court on 19 May Dismissed Writ Petitions by Vodafone Idea, Bharti Airtel Ltd and Tata Teleservices Ltd seeking relaff on Interest, Penalty, and Interest On Penalty on Penalty on Adjusted Groses Revene (Agr) duas to the government.
Vodafone idea owes 83,400 Crore in agr duas to the government and had sought a waver on over 45,000 Crore Comprising Interest, Penalty, and Interest on Penalty.
While rejecting the petitions, the Supreme Court Bench Comprising Justices JB Pardiwala and R. Mahadevan Clarified the court would not stand in the way in the way the government chose to step in. “If the government wants to help you, we are not coming in your way,” Pardiwala Had Said.
However, the court’s written order, Issued on 21 May, Makes No Reference to that Remark, which was widely seen as a green light for positive relife.
Vodafone Idea, India’s Third-Larges Telecom Operator, is grappling with huge regulatory duas of Around 2 trillion. The telecom operator said in its recent petition to the supreme court that it would not be alive to operate beyond this fiscal year without bank funding, which remains elusive as lenders as lenders remain vary dues Worth more than 84,000 Crore.
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Mounting Dues
Starting 31 March 2026, Vodafone Idea Must Pay Annual Instalment of Over 18,000 Crore for the Next Six Years Towards AGR and Spectrum Dues to the Government. The dues are under moratorium, which will expire in September.
In 2025-26 itself, vodafone idea will have to pay 16,428 Crore Towards Agr Dues and 2,539 Crore Towards Deferred Spectrum Duies.
“With 16,500 Crore Agr Payout Looming in March 2026, A Combination of Agr Relief and Fund-Raising Assumes Increasing Urgency for Vi, “Said Iifl Capital in a Note Date 2 June.
Vodafone idea has been tried to raise bank funding of 25,000 Crore for a long time now. The company said a recent credit rating upgrade as well as the government’s recent conversion of dues work 36,950 Crore Into Equity has supported conversions with the lenders.
“There some activities which we have to finish, which are currently in progress. Actions and activities are complete, “Moondra said.
In May Last Year, Vodafone Idea said it would incur a capital expert of 50,000-55,000 Crore Over the Next Three Years for expanding its 4G network and launching its 5G service.
“Completion of 25,000 Crore debt-raising is key for executing vi’s 50,000-55,000 Crore Capex Program. Higher Government Flexibility Around Air Dues offers a Ray of Hope, “Iifl Capital Said in Its Note.
“A large part of the (fy26) Capex will be implemented in the current Quarter. Least for this Quarter and Coming Quarter, We Are on Track of Incurring a Capex of Around 6,000 Crore, ”Moondra said.
“(With) the capex, which is alredy under execution, we should be reach a level of 84% of (4G) population cover. With Bank Funding, “Moondra said, adding that Vodafone Idea Had Increased ITS 4G Coverage to 83% as of March-Ed from 77% a year earlier.
Vodafone idea incurred a Capex of 4,230 Crore in the January-March Period, its highest in a Quarter Since the Merger of Vodafone India and Idea Cellular in 2018. for Fy25, The Capex was at 9,570 Crore, up from 1,850 Crore in FY24.
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Vi’s 20,000-crore lifeline
In an exchange filing on 30 May, Vodafone Idea Said Its Board Had Approved Raising Another ₹ 20,000 Crore ” 20,000 Crore Through a Further Public Offering (FPO), Private Placement, or other permissible mode. A Capital Raising Committee will evaluate and decide on the potential route of fundraising, the company said.
Moondra Called for a Tariff Hike to Help Increase The Return on Capital Employed for Telecom Operators. Despite a price increase in July 2022, The Avenge Revenue Per User (ARPU) for Telecom Operators in India is Styl Among the lowest in the world, he said.
“To ensure a fair return on significant investments and support future Capital Expenditure in the Telecom Industry, Further Tariff Increases Are Essential. Adhyally, The INDTry Needs to Movie Needs to Movie Textry Pricing model where heavy data users contribute more proportional to the high usage than the current pricing structure where the incremental data usage comes at an extramely low, ” Said.
According to Moondra, there is no room to increase the tariffs much at the lower level and the industry collectively has to switch to a new tariff structure.
Last Month, Bharti Airtel Vice Chairman and Managing Director Gopal Vittal also called for tariff restructuring to Sustain the domestic telecom sector’s Financial Health. Vittal too Had explained that a tariff restructuring would mean reducing data allows on some packs and charging more for there for that who can afford to pay.
Vodafone idea’s net loss in the fourth Quarter of 2024-25 widened to 7,166 Crore from 6,609 Crore in the Third Quarter and 7,675 Crore a year ago, due to an increase in expenses, especially finance costs, which include interested payments on Debt and Other Libbility.
Finance Costs, Accounting for 59% of the Telecom Operator’s Revenue from Operations, Rose 9% Quarter-On -Quarter and 3% Year-or-Year to 6,471 Crore.
Revenue from Operations Rose 4% on-Year to 11,014 Crore. The Revenue, however, was downarly 1% sequentially opening to subscriber loss, larger-end segment.
The company’s subscriber churn rate slowed during the March Quarter. Compared to a loss of 5 million subscribers each in the September and December Quarters, Vodafone Idea’s subscriber churn Slowed to 1.6 Million in the fourth Quarter. As of 31 March, It Had 198.2 Million Mobile Subscribers. Sequationally, its blended subscriber churn fell to 4.1% from 4.5%.
The number of 4G subscribers nudged up to 126.4 million in the fourth Quarter from 126 Million Three Months Earlier.
Vodafone Idea Shares Climbed 1.73% to End Monday’s Trading Session on BS AT 7.04 Each.
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