Vodafone Idea Ltd (Vi) is in ongoing talks with the Department of Telecommunications (DoT) seeking relief on its adjusted gross revenue (AGR) dues and is also engaging with banks to secure additional funding, Non-Executive Chairman Ravinder Takkar said. He noted that the company has so far met all its debt obligations to lenders, but its ability to meet future liabilities will depend on sustained government support, successful equity and debt raising, and stronger operational cash flows.
The company’s net worth stood at a negative Rs 76,934.6 crore at the end of the quarter.
Debt from banks payable by June 2026 stands at Rs 1,715.2 crore, excluding interest, with an additional Rs 210.8 crore reclassified from long-term to short-term borrowings due to covenant breaches.
"As of date, the Group has met all its debt obligations payable to its lenders/ banks and financial institutions, along with applicable interest. The Company is in discussion with banks to raise additional funds as required," Takkar said in the Q1 earnings statement.
As of June 30, 2025, Vi’s outstanding bank debt (including accrued but unpaid interest) stood at Rs 1,944.5 crore, while deferred payment obligations towards spectrum and AGR totalled Rs 1.99 lakh crore, payable over periods extending to FY44 for spectrum and FY31 for AGR. The AGR instalment due in FY26 is pegged at Rs 16,428 crore, while spectrum-related payments due by June 2026 amount to Rs 2,641.4 crore.
Following the telecom sector reforms announced by the Cabinet in 2021, spectrum instalments (excluding auctions held in 2021, 2022, and 2024) and AGR dues till FY19 fall under a four-year moratorium, with final liability amounts to be determined by December 31, 2025. AGR payments are scheduled to begin in six equal instalments from March 31, 2026.
Vi had sought certain relief on the AGR matter from the DoT in April 2025, but after its representation was rejected, a writ petition filed before the Supreme Court in May 2025 was dismissed. The company maintains that the ruling does not prevent further engagement with the government to work out a payment solution before the first post-moratorium instalment is due, Takkar said.
Separately, assets on Vi’s books include recoverable amounts from the promoters of erstwhile Vodafone India Ltd under a 2017 Implementation Agreement, which has now been extended for settlement till December 31, 2025.
“This has been a decisive turnaround quarter. The investments made over the past three quarters to expand our 4G coverage have started yielding results, as reflected in the 90% lower subscriber loss compared to Q2 and Q3 of last financial year, being the lowest subscriber decline since merger...we continue to invest in capex and to support our broader capex plans of Rs. 500–550 billion, we remain engaged with lenders to secure debt financing," Akshaya Moondra, CEO, Vodafone Idea Limited, said in the Q1 earnings statement.
Vodafone Idea on August 14 reported a net loss of Rs 6,608 crore for Q1 FY26. This is higher than the Rs 6,432 crore net loss reported in Q1 FY25. However, net loss has narrowed sequentially from the Rs 7,166 crore reported in Q4 FY25.
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