According to chief executive officer (CEO), Vodafone Idea Limited (Vi), the company will need to depend on its internal cash flows for network expansion beginning September 2025, as funds raised through its follow-on public offering (FPO) are expected to be fully deployed by then. The telco’s plans for fresh bank financing remain uncertain, with lenders awaiting clarity on the adjusted gross revenue (AGR) dues issue.
The company is also exploring non-banking sources to support its capex cycle. The CEO said that spending would increasingly come from internal accruals once FPO-linked investments are completed, while discussions with banks continue but are contingent on AGR relief.
On the operational front, Vi is seeing an improvement in subscriber metrics. Subscriber churn fell sharply to 0.5 million in first quarter (Q1) 2025-26 from around 9 million in each of the previous two quarters. The CEO further noted that the outflow of subscribers to Bharat Sanchar Nigam Limited (BSNL) following the 2024 tariff hikes has now stabilised.
Furthermore, he added that while 5G rollout was not the only reason for churn, it is enhancing user experience. Around 60 to 70 per cent of Vi subscribers with 5G devices are now adopting and using 5G services.
