Vodafone Idea CEO Akshaya Moondra said the company is actively engaged with lenders to secure critical debt financing as it looks to roll out 5G services and stabilise its financial position.
Speaking during the post-Q4 earnings call, Moondra said, “We remain actively engaged with lenders for securing the required debt financing to support our strategic initiatives.”
The telco confirmed its plans to launch 5G services across 17 telecom circles by August, a move seen as essential to closing the technology gap with competitors. Rivals Reliance Jio and Bharti Airtel have already completed nationwide 5G rollouts, making Vodafone Idea’s delayed entry crucial for long-term competitiveness.
Funding, however, remains a key challenge. Vodafone Idea reiterated the urgent need for further tariff hikes, warning that India’s average revenue per user (ARPU) remains among the lowest globally, undermining sector profitability and dragging return on capital employed (ROCE) below the cost of capital.
In an exchange filing dated May 30, Vodafone Idea’s board approved plans to raise up to Rs 20,000 crore through a further public offering (FPO), private placement, or other permissible routes as it seeks to keep operations afloat. The move comes amid continued financial pressure, with the company posting a consolidated net loss of Rs 7,166.1 crore for the quarter ended March 2025. While this represents a slight improvement over the Rs 7,674.6 crore loss a year ago, it has widened from the Rs 6,609.3 crore loss in the previous quarter.
Despite ongoing losses, revenue for the quarter rose 3.8% year-on-year to Rs 11,013.5 crore, supported by previous tariff increases and a shift toward higher-paying customers. ARPU increased significantly by 14.2% to Rs 175 year-on-year.
India’s third-largest telecom operator said it remains confident of receiving government support, completing its funding efforts, and generating operational cash flows. It also announced that its Capital Raising Committee would assess and finalise the route for the proposed capital infusion.
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