
Vodafone Idea resumes relief talks with govt., links capex to bank funding
The struggling company is also engaging with banks to secure debt funding for its long-term expansion, chief executive Akshaya Moondra said, adding that banks would want clarity on the dues the telco owes to the government before they agree to lend.
But it is not preventing the discussions from moving forward, Moondra said.
'I see no reason why the government should be constrained in any way to offer relief…,' Moondra said on Monday during a call with analysts to discuss Vodafone Idea's March-quarter earnings.
Vodafone Idea is set to incur capital expenditure of ₹ 5,000-6,000 crore for the first half of 2025-26 to enhance its network and infrastructure. However, its next leg of spending would be dependent on funds from banks, Moondra said.
The Supreme Court on 19 May dismissed writ petitions by Vodafone Idea, Bharti Airtel Ltd and Tata Teleservices Ltd seeking relief on interest, penalty, and interest on penalty on adjusted gross revenue (AGR) dues to the government.
Vodafone Idea owes ₹ 83,400 crore in AGR dues to the government and had sought a waiver on over ₹ 45,000 crore comprising interest, penalty, and interest on penalty.
While rejecting the petitions, the Supreme Court bench comprising Justices J.B. Pardiwala and R. Mahadevan clarified the court would not stand in the way if the government chose to step in. 'If the government wants to help you, we are not coming in your way,' Pardiwala had said.
However, the court's written order, issued on 21 May, makes no reference to that remark, which was widely seen as a green light for possible relief.
Vodafone Idea, India's third-largest telecom operator, is grappling with huge regulatory dues of around ₹ 2 trillion. The telecom operator said in its recent petition to the Supreme Court that it would not be able to operate beyond this fiscal year without bank funding, which remains elusive as lenders remain wary of its AGR dues worth more than ₹ 84,000 crore.
Starting 31 March 2026, Vodafone Idea must pay an annual instalment of over ₹ 18,000 crore for the next six years towards AGR and spectrum dues to the government. The dues are under moratorium, which will expire in September.
In 2025-26 itself, Vodafone Idea will have to pay ₹ 16,428 crore towards AGR dues and ₹ 2,539 crore towards deferred spectrum dues.
'The government may have to extend the moratorium or increase its stake in the telco,' said analysts at IIFL Capital in a 20 May note.
Vodafone Idea has been trying to raise bank funding of ₹ 25,000 crore for a long time now. The company said a recent credit rating upgrade as well as the government's recent conversion of dues worth ₹ 36,950 crore into equity has supported conversations with the lenders.
'There are some activities which we have to finish, which are currently in progress. We will again get to the point of discussions with the banks somewhere this month once some of the pre-requisites in terms of those actions and activities are completed,' Moondra said.
In May last year, Vodafone Idea said it would incur a capital expenditure of ₹ 50,000-55,000 crore over the next three years for expanding its 4G network and launching its 5G service.
'A large part of the capex will be implemented in the current quarter. In terms of our next round of capex, we have to decide and firm up our plan. It also has some dependence on funding. At least for this quarter and coming quarter, we are on track of incurring a capex of around ₹ 6,000 crore,' Moondra said.
'(With) the capex, which is already under execution, we should be reaching a level of 84% of (4G) population coverage. I believe we will move up from 84%, but to get to 90% (the capex) has got linkages with bank funding,' Moondra said, adding that Vodafone Idea had increased its 4G coverage to 83% as of March-end from 77% a year earlier.
Vodafone Idea incurred a capex of ₹ 4,230 crore in the January-March period, its highest in a quarter since the merger of Vodafone India and Idea Cellular in 2018. For FY25, the capex was at ₹ 9,570 crore, up from ₹ 1,850 crore in FY24.
In an exchange filing on 30 May, Vodafone Idea said its board had approved raising another ₹ 20,000 crore through a further public offering (FPO), private placement, or other permissible mode. A capital raising committee will evaluate and decide on the potential route of fundraising, the company said.
Moondra called for a tariff hike to help increase the return on capital employed for telecom operators. Despite a price increase in July 2022, the average revenue per user (Arpu) for telecom operators in India is still among the lowest in the world, he said.
'To ensure a fair return on significant investments and support future capital expenditure in the telecom industry, further tariff increases are essential. Additionally, the industry needs to move towards a pricing model where heavy data users contribute more proportionally to the high usage than the current pricing structure where the incremental data usage comes at an extremely low, unsustainable price,' Moondra said.
According to Moondra, there is no room to increase the tariffs much at the lower level and the industry collectively has to switch to a new tariff structure.
Last month, Bharti Airtel vice chairman and managing director Gopal Vittal also called for tariff restructuring to sustain the domestic telecom sector's financial health. Vittal too had explained that a tariff restructuring would mean reducing data allowances on some packs and charging more for those who can afford to pay.
Vodafone Idea's net loss in the fourth quarter of 2024-25 widened to ₹ 7,166 crore from ₹ 6,609 crore in the third quarter and ₹ 7,675 crore a year ago, due to an increase in expenses, especially finance costs, which include interest payments on debt and other liabilities.
Finance costs, accounting for 59% of the telecom operator's revenue from operations, rose 9% quarter-on-quarter and 3% year-on-year to ₹ 6,471 crore.
Revenue from operations rose 4% on-year to ₹ 11,014 crore. The revenue, however, was down nearly 1% sequentially owing to subscriber loss, largely in the lower-end segment.
The company's subscriber churn rate slowed during the March quarter. Compared to a loss of 5 million subscribers each in the September and December quarters, Vodafone Idea's subscriber churn slowed to 1.6 million in the fourth quarter. As of 31 March, it had 198.2 million mobile subscribers. Sequentially, its blended subscriber churn fell to 4.1% from 4.5%.
The number of 4G subscribers nudged up to 126.4 million in the fourth quarter from 126 million three months earlier.
Vodafone Idea shares climbed 1.73% to end Monday's trading session on BSE at ₹ 7.04 each.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Hindustan Times
3 hours ago
- Hindustan Times
Auto recap, July 27: VinFast's first showroom in India, Mahindra BE 6's new record, MG Comet price hike & more…
The automotive industry is experiencing rapid changes, which makes it difficult to stay informed about all the latest advancements. At HT Auto, we are dedicated to delivering the most relevant and current information as it becomes available. Below is a concise overview of the key highlights from Sunday, July 27. Here is your quick check on the biggest developments in the world of automobiles. VinFast opens its first showroom in India VinFast Auto India, the Indian subsidiary of the Vietnamese electric vehicle manufacturer VinFast, has announced the inauguration of its first showroom in the country. Located in Surat, Gujarat, the showroom has been launched ahead of the inauguration of the brand's first EV plant in the country. The showroom comes as the first of the 35 dealerships VinFast is planning to set up across 27 cities in India by the end of 2025. The showroom will showcase both the VF6 and VF7 electric SUVs, for which the OEM has already started accepting pre-bookings. Also check these Cars Find more Cars UPCOMING VinFast VF3 210 km 210 km ₹ 9 - 12 Lakhs Alert Me When Launched MG Comet EV 17.3 kWh 17.3 kWh 230 km 230 km ₹ 7.50 Lakhs Compare View Offers UPCOMING Mahindra e20 NXT 15 kWh 15 kWh 140 km 140 km ₹ 6 - 8 Lakhs Alert Me When Launched Tata Punch EV 35 kWh 35 kWh 421 km 421 km ₹ 9.99 Lakhs Compare View Offers UPCOMING VinFast VF7 75.3 kWh 75.3 kWh 450 km 450 km ₹ 60 - 65 Lakhs Alert Me When Launched Mahindra BE 6 79 kWh 79 kWh 682 km 682 km ₹ 18.90 Lakhs Compare View Offers Also Read : VinFast opens its first showroom in India MG Comet EV prices hiked by ₹ 15,000, battery subscription also gets costlier The MG Comet EV has seen yet another price hike for 2025. This is the second price revision from MG this year, following a hike of up to ₹36,000 in May 2025. The latest adjustment raises prices by up to ₹15,000 across most variants. In parallel, the carmaker has also revised the rental charges for its battery subscription model—called Battery-as-a-Service (BaaS)—from ₹2.9 per kilometre to ₹3.1 per kilometre. Also Read : MG Comet EV prices hiked by ₹15,000, battery subscription also gets costlier Mahindra BE 6 does hot laps at London E-Prix, first Indian eSUV to do so In a striking moment for Indian automotive engineering, the Mahindra BE 6, a born-electric SUV from the company's upcoming BE lineup, made its public dynamic debut by doing hot laps at the London Formula E E-Prix this weekend. This marks the first time a made-in-India electric SUV has been showcased in such a global motorsport setting. Also Read : Mahindra BE 6 does hot laps at London E-Prix, first Indian eSUV to do so Delhi govt moves Supreme Court against blanket ban on overage vehicles, hearing on July 28 The Delhi government has moved the Supreme Court, challenging the blanket ban on overage vehicles, which includes restrictions on diesel vehicles older than 10 years and petrol vehicles older than 15 years. A three-judge bench headed by Chief Justice Bhushan R Gavai is likely to hear the plea on July 28. The Delhi government's plea seeks the recall of the court's order dated October 29, 2018, which upheld the National Green Tribunal's (NGT) initial directive. Also Read : Delhi govt moves Supreme Court against blanket ban on overage vehicles, hearing on July 28 Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date:


Time of India
4 hours ago
- Time of India
AGR dues: DoT issues Rs 7,800cr demand notice to Tata Comm
NEW DELHI: The Department of Telecom (DoT) has issued a "show-cause-cum-demand notice" of about Rs 7,800 crore to Tata Communications over adjusted gross revenue dues (AGR), according to an official note by the company. The demand has been raised by DoT for AGR from 2005-06 till 2023-24, as per the note dated July 17. "As at June 30, 2025, the company has received 'Show Cause-cum Demand Notices' from DoT aggregating to Rs 7,827.6 crore for financial years ranging from FY 2005-06 to FY 2023-24, which have been revised over a period of time," Tata Communications MD AS Lakshminarayan said. He said the demand notices include Rs 276.7 crore towards disallowance of deductions claimed by the company on payment basis for 2010-11 under ISP licence and FY07 and FY10 under NLD licence. Lakshminarayan said the company's appeals are not covered by the apex court judgement dated Oct 24, 2019, on AGR under the old telecom licence regime called UASL. "Further, the company believes that all its licences are different from UASL, which was the subject matter of Hon'ble Supreme Court judgement of Oct 24, 2019. The company, based on its assessment and independent legal opinions, believes that it will be able to defend its position," Lakshminarayan said. agencies Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now


Time of India
6 hours ago
- Time of India
Officials ignore footpath encroachment in Mysuru despite Supreme Court order
Mysuru: The civic agencies across the state started to reclaim the footpaths from vendors following a recent Supreme Court order, but in Mysuru, the officials remained blind to the problem. Tired of too many ads? go ad free now As a result, pedestrians are forced to walk on the road, causing traffic congestion and threatening their lives. Experts and stakeholders urged the Mysuru City Corporation (MCC) and city police to intervene immediately to help the pedestrians claim the footpath. According to the city residents, with the civic agencies and police failing to act as per the rule book, in many places, vendors have come out with permanent structures on the footpaths. The garages on both sides of the busy Chamaraja Double Road, eateries, and shops are near the city's hospitals, and bus stands are such permanent structures, they said. They allege that even though the footpaths belong to pedestrians, these vendors force them to walk on the road, exposing them to accidents. Advocate PJ Raghavendra said the corporation and city police failed the pedestrians by allowing rampant footpath encroachment. "Unfortunately, even in the heart of the city, footpaths are encroached, and officials are silent," he alleged. "In many places, encroachments are carried out by criminal elements with the patronage of power. Sadly, civic agencies failed to protect the rights of the people," he said. AAP leader and activist Malavika Gubbivani advised the MCC to follow the Chandigarh model, where separate arrangements have been made for the street vendors. Tired of too many ads? go ad free now "Due to the current economic crisis, many are opting for roadside businesses. They should be provided with designated spots for the business. At the same time, the footpaths must be saved for the pedestrians," she said. Bhaskara Srinivasa Raje Urs, president of Karnataka State Street Vendors Maha Mandala, said if the Street Vendors Act 2014 is implemented in the true spirit, this problem can be solved. "Both state and central govts framed rules for street vendors. But they are not implemented, which resulted in this chaos," he said.