Vodafone Idea needs 2.2x ARPU jump to meet payout obligations

Vodafone Idea’s average revenue per user (ARPU) needs to more than double in the next two years for meeting its stiff annual regulatory payouts from FY27, analysts said.

Vi’s ARPU, they said, needs to jump 2.2x to around Rs 320 by FY27—from Rs 146 now—even if the cash-strapped telco sees a 50% cut in its adjusted gross revenue (AGR) liability to Rs 35,000 crore via a favourable Supreme Court verdict on its curative plea. As per company data, Vi’s total AGR dues were pegged at Rs 70,320 crore in the quarter to March 2024.