Debt-laden Vodafone Idea is exploring non-banking avenues to increase funds and maintain its ongoing capital expenditure, outgoing CEO Akshaya Moondra stated on August 18. During the June 2025 quarter earnings name, Moondra stated lenders stay hesitant till there’s readability on the adjusted gross income (AGR) situation.
“Given the truth that we’re eager on sustaining a continuity of our capex, which has been going on since final yr, we’re taking a look at non-banking sources of funding additionally. Not the complete quantity of Rs 25,000 crore that we’ve talked about, however a lesser quantity in order that we will proceed with the capex cycle,” he stated on his final day as CEO.
The Vodafone Idea board has authorised the elevation of Chief Operating Officer Abhijit Kishore as CEO with impact from August 19, changing Moondra, whose three-year tenure ends on August 18.
Moondra stated the corporate continues to interact with banks. “I feel what the banks are at the moment in search of is a few readability on the AGR entrance. So that’s the place we’re engaged with the federal government. Given that the federal government has made the conversion, they’re immediately the most important stakeholder within the firm. Whether as an fairness holder or any dues that are owed to any exterior get together, we’re fairly assured that there will likely be an answer to AGR,” he stated.
VIL, during which the federal government holds a 49 p.c stake, carries a internet debt of over Rs 2 lakh crore and an AGR legal responsibility of round Rs 75,000 crore on the finish of June 2025. The firm is banking on Department of Telecom help to resolve the matter earlier than March 2026, when it’s scheduled to start AGR repayments in six equal installments.
Recalling previous reduction measures, Moondra stated: “I feel prior to now, we’ve at all times seen that the federal government has been supportive. You have a look at 2019, deferment of spectrum installments, 2021 reforms bundle, 2023 conversion of presidency dues to fairness, 2025 once more conversion of dues to fairness. Generally, these actions have occurred nearer to the time when it’s basically wanted.”
On operations, VIL stated capex of Rs 2,440 crore through the quarter helped arrest buyer losses, which fell to 5 lakh from about 50 lakh within the September and December 2024 quarters. The firm’s subscriber base stood at 19.77 crore, together with 12.74 crore 4G and 5G customers.
Vodafone Idea has launched 5G providers in 22 cities, together with Mumbai, Delhi, Bengaluru, Mysuru, Surat and Ahmedabad, and plans to prolong protection throughout its 17 precedence circles by September.
Despite community enhancements, VIL’s consolidated loss widened to Rs 6,608 crore within the June quarter, in contrast with Rs 6,426.7 crore a yr in the past, due to increased finance prices and authorities levies. Finance prices rose 7 p.c year-on-year to Rs 5,892.8 crore, whereas licence and spectrum expenses elevated 6 per cent to Rs 947 crore.
Revenue from operations grew 5 p.c year-on-year to Rs 11,022.5 crore, pushed by a 15 p.c soar in common income per consumer (ARPU) to Rs 177 from Rs 154 in June 2024.
(With inputs from PTI)
