Vi sees adequate cash flows for debt, spectrum, AGR payments; in talks for fresh bank funding

The company’s deferred payment obligations, including interest accrued but not due, stood at Rs 1,24,877 crore towards spectrum liabilities and Rs 80,502 crore towards AGR dues, subject to the recent developments.

• Vodafone Idea expects to meet obligations over next year amid AGR developments
• Company reported Rs 17,540 crore loss for nine months ended December 2025
• Vodafone Group to release Rs 2,307 crore to Vodafone Idea over next 12 months

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Vodafone Idea, citing recent positive developments in the AGR matter, said it is confident of generating sufficient cash flows from operations to meet its obligations over the next 12 months, including payments towards lenders, spectrum dues and AGR liabilities, as and when they fall due.

The company added that it is in discussions with banks to raise additional funds.For the nine months ended December 31, 2025, the company reported a loss of Rs 17,540 crore. Its net worth remained negative at Rs 87,400 crore as of that date.As of December 31, 2025, outstanding debt from banks and other lenders, including interest accrued but not due, stood at Rs 1,140 crore. Scheduled instalments due by December 2026 amount to Rs 1,126 crore, along with applicable interest.

The company’s deferred payment obligations, including interest accrued but not due, stood at Rs 1,24,877 crore towards spectrum liabilities and Rs 80,502 crore towards AGR dues, subject to the recent developments. Of this, Rs 7,001 crore is scheduled to be paid by December 2026.Vodafone Idea said it has met all debt obligations payable to lenders, banks and financial institutions, along with applicable interest, as of the date.

The company’s assets as of December 31, 2025 include amounts recoverable from the promoters of erstwhile Vodafone India Ltd under the Implementation Agreement dated March 20, 2017, which was amended on December 31, 2025.Under the revised terms, both parties have agreed to settle the recoverable amount, with Rs 2,307 crore (based on the exchange rate as of the amendment date) to be released by Vodafone Group promoters over the next 12 months, in line with the amendment agreement.

A portion of the settlement is secured through the earmarking of 328 crore equity shares of the company by certain Vodafone Group entities for a period of five years. Proceeds from the sale of these shares, as and when undertaken at the company’s instruction, will accrue to Vodafone Idea.

As of December 31, 2025, the fair market value of the earmarked shares stood at Rs 3,302 crore, based on the closing price on the National Stock Exchange and adjusted for transaction and incidental costs. The difference between the carrying value of Rs 6,394 crore and the fair value under the revised settlement mechanism has been recognised as a loss on remeasurement of settlement assets.