Vodafone Idea rules out fresh equity as AGR relief, bank funding back 3

Vodafone Idea is not looking at fresh equity infusion at this stage and believes its current funding roadmap is sufficient to execute its three-year turnaround plan, CEO Abhijit Kishore said, even as the telco awaits the outcome of a reassessment of its ₹87,695 crore AGR dues. Management’s confidence is anchored in a mix of bank loans, promoter support and the freeze on AGR liabilities under the government framework. As per a Moneycontrol report, responding to investor queries, Kishore said Vi is targeting ₹25,000 crore in bank funding and ₹10,000 crore in non-funded facilities to support its planned ₹45,000 crore capital expenditure over the next three years. With an annual EBITDA of around ₹9,200 crore, Kishore said the company’s debt-to-EBITDA ratio of about 2.5x remains manageable. “We are not looking at equity at this point in time,” he said, adding that both promoters remain committed to the business. Speculation around a potential equity raise or strategic investor has persisted for quarters, largely due to Vi’s leverage and upcoming liabilities. Management instead pointed to internal cash flow improvement, operational efficiencies and incremental debt to fund both network investments and statutory obligations. The company expects to triple EBITDA over three years, driven by subscriber stabilisation, customer upgrades and capex-led revenue growth. A key factor enabling that stance is the AGR relief framework, under which dues have been frozen at ₹87,695 crore as of December 31, 2025, with a back-ended 10-year repayment schedule. In parallel, a reassessment of AGR dues for FY07–FY19 is underway. “The reassessment has started and is progressing at a very encouraging pace,” Kishore said, declining to comment on the potential quantum of relief. CFO Tejas Mehta said ₹80,000 crore of AGR dues are already recognised on the balance sheet, with the rest disclosed as a contingent liability. On spectrum payments, the telco said it is not seeking any moratorium from the government. Over the next three years, it faces spectrum payment obligations of about ₹49,000 crore, including ₹7,000 crore in the first year, ₹15,000 crore in the second and about ₹27,000 crore in the third. Management said payments will be met through EBITDA growth, internal cash generation and bank funding. The ₹45,000 crore capex plan, in addition to roughly ₹18,000 crore already spent over the past six quarters, will be front-loaded, with around 70% earmarked for radio access networks and the balance for transport and core network upgrades. Management also noted progress on promoter support arrangements, including a scheduled payout from Vodafone Group over the next 12 months, which is expected to aid liquidity.