According to chief executive officer (CEO), Vodafone Idea Limited (Vi), the Supreme Court’s recent ruling has left the option open for the government to extend adjusted gross revenue (AGR) relief to telcos, if it chooses to do so. Referring to the court’s May 19, 2025 verdict, which dismissed telcos’ review petitions in the AGR case, the CEO noted the bench’s remark that it would not interfere if the government chose to assist.
He stressed that bank funding remains critical for Vi’s plans to expand its 4G coverage from the current 84 per cent to 90 per cent of the population. The telco has allocated a capex of around Rs 60 billion for the ongoing quarter, part of which may carry over into the next fiscal quarter. In fourth quarter financial year 2024-25 (Q4FY25), Vi spent Rs 42.80 billion, its highest quarterly capex since the 2018 merger, largely to expand 4G and roll out 5G to stem subscriber losses to Reliance Jio and Bharti Airtel.
Following the court verdict, Vi is actively pursuing bank funding worth Rs 200-220 billion. While banks are still seeking greater clarity on AGR liabilities, the CEO noted that the recent conversion of spectrum dues into government equity marked a positive step forward. Discussions with UK-based Vodafone Group are also ongoing to unlock a pre-agreed settlement amount.
Further, Vi’s board recently approved plans to raise an additional Rs 200 billion. However, the telco reported a widening of its net loss to Rs 71.66 billion in the March quarter, up from Rs 66.09 billion in the previous quarter, amid continued subscriber erosion.
