According to CLSA, Vodafone Idea Limited’s (Vi) revenue market share (RMS) in its 17 priority circles fell 1.5 percentage points to 17.2 per cent between June 2022 and June 2023, owing to a 65 per cent reduction in quarterly capital expenditure (capex).

These priority circles account for 98 per cent of Vi revenue, highlighting the telecom operator’s critical financial situation in the absence of a fundraising. Analysts expect Vi’s revenue share losses to mount as the cash-strapped telco continues to prioritise bank debt repayment, compromising capex in absence of funds.

According to CLSA, Vi’s quarterly capex fell 66 per cent to Rs 4.5 billion in April-June 2023 from quarterly record of Rs 13 billion in 2022. Its bank debt fell 59 per cent to Rs 95 billion over this period, indicating that the telco has dramatically reduced capex, delayed vendor payments, and prioritised repaying bank debt.

CLSA further added in a note that Vi faces a challenge in priority circles. With capex cuts, a further RMS loss is likely with Reliance Jio and Bharti Airtel ramping up 5G.