Crisil upgrades Vodafone Idea’s credit rating on promoter support, improving market position
Crisil Ratings on Monday upgraded Vodafone Idea’s (Vi) credit rating to ‘A-’ (stable) on continued support from promoter entity, Aditya Birla Group (ABG) and an improvement in subscriber market share.
“ABG sees VIL as a strategically important entity and recent appointment of Mr. Kumar Mangalam Birla as VIL’s chairman highlights strong management control of the group,” the credit rating agency said in its report.
“The recent announcement of the group committing subscription of share warrants aggregating to ₹4,730 crore underscore the commitment of the group,” it added.
The rating action is for Vi’s bank facilities of ₹35,000 crore.
Citing data from the telecom regulator (TRAI), Crisil said Vi holds a meaningful subscriber market share of 15.68%, as of March 2026, noting that its subscriber losses are expected to reduce on the back of planned investments over the next two-to-three fiscal years.
“Underinvestment in capex to expand 4G network coverage has led to a fall in subscriber base from 29.1 crore at the end of March 2020 to 19.8 crore at the end of March 2025. However, the subscriber loss has reduced significantly during fiscal 2026 with net additions in the last two months of fiscal 2026,” it said.
Vi has earmarked ₹45,000 crore as capital expenditure (capex) between FY27 and FY29 to enhance 4G coverage and add fifth-generation (5G) network sites.
As per the ratings agency, the capex plan is further expected to increase the telco’s operating revenues, and earnings before interest, taxes, depreciation, amortisation and rentals (EBTIDAR), leading to higher cash flow generation.
Crisil also noted the recent announcement on the resolution of AGR dues by the Department of Telecommunications (DoT), which will reduce Vi’s liabilities and ease pressure on cash flow generation.
“The liabilities pertaining to AGR have reduced to ₹64,046 crore from ₹87,695 crore with minimal repayments till fiscal 2035. This should ease pressure on cash flow position over the near to medium term,” it said.
