Vodafone Idea: Loss has reduced but debt of Rs 2 lakh crore is scary, know what big preparations the company is making

News Topical, Digital Desk : Vodafone Idea Limited (Vi) said in its results released on Thursday that the company's loss during April-June has come down quarter-on-quarter to Rs 6,608 crore. But, this is more than the loss of Rs 6,432 crore in the same quarter last year. It is less than the loss of Rs 7,166 crore in the March quarter (Q4 FY25). The company is planning to close its loss on the first quarter of its fiscal year.
The company is in talks with the Department of Telecommunications (DoT) for relief on Adjusted Gross Revenue (AGR) dues and is trying to raise additional funds from banks.

At the end of the June quarter, the company's net worth was negative Rs 76,934.6 crore. During this period, the company's debt payable to banks is Rs 1,715.2 crore, which does not include interest. Apart from this, a loan of Rs 210.8 crore changed from long term to short term due to violation of rules.

During this period, till June 30, 2025, the bank debt (including interest) is Rs 1,944.5 crore and spectrum and AGR dues are Rs 1.99 lakh crore, which is payable till FY44 (spectrum) and FY31 (AGR). Rs 16,428 crore is to be paid for AGR in FY26 and Rs 2,641.4 crore for spectrum by June 2026.

What relief has the government given to the company? Under the 2021 telecom reforms, there is a four-year moratorium on spectrum and AGR dues up to FY19, excluding the 2021, 2022 and 2024 auctions. The final dues will be settled by December 31, 2025. AGR payments will start from March 31, 2026 in six equal installments. Vodafone Idea had sought AGR relief from the DoT in April 2025, but it was rejected. The petition filed in the Supreme Court in May 2025 was also rejected. However, non-executive chairman Ravinder Takkar said that the company will continue to negotiate with the government on a payment solution.

Bank funding and investment Takkar said that the company has paid all debt obligations and interest so far. But, future payments require government support, equity and debt raising, and better cash flow. The company is in talks with banks for additional funding. Chief Executive Officer Akshay Mundhra said, "This quarter was decisive. The results of investments made in increasing 4G coverage in the last three quarters are showing. Customer loss has reduced by 90%, which is the lowest since the merger." The company is working on a capital expenditure (capex) plan of Rs 50,000-55,000 crore, for which efforts are on to raise loans from banks.

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