Vodafone Idea continues discussions with lenders, enters FY27 with financial clarity: KM Birla

Vodafone Idea (Vi) has ongoing discussions with lenders to secure long-term funding for the planned capital investment programme of ₹45,000 crore over FY27 and FY29, and the telecom operator has entered the new fiscal year with greater financial clarity and a renewed capacity to invest, its Chairman Kumar Mangalam Birla said.

“Discussions continue with lenders to secure long-term funding for the planned capital investment programme of ₹45,000 crore over FY27 to FY29, supporting the expansion of a fully competitive network,” Birla said in the telco’s annual report for FY26 released on Wednesday.

Confidence among investors and lenders strengthened during the financial year that ended March 31, 2026, the top executive said.

During the year, Vi raised ₹3,300 crore through non-convertible debentures (NCDs).

“Promoter support remained unequivocal. Vodafone Group concluded the settlement of the Contingent Liability Adjustment Mechanism (CLAM) receivable amounting to ₹6,394 crore, while the Aditya Birla Group committed a further equity infusion of $500 million (approximately ₹4,730 crore) through fully convertible instruments,” Birla said.

He termed the resolution of the AGR matter the “most significant” development for India’s third-largest private wireless telco.

Following a reassessment by a Department of Telecommunications (DoT) committee, the telecom carrier’s AGR liability has been finalised at ₹64,046 crore, substantially below the earlier provisional figure of ₹87,695 crore.

“The reduction in liability, together with the recognition of the present value of future payments, was a key factor contributing to the one-time profit after tax of ₹34,552 crore. More importantly, it removed a major source of uncertainty by establishing a clear long-term repayment schedule,” Birla said.

Vi’s revenue increased 3% to ₹44,873 crore in FY26, from ₹43,571 crore a year earlier. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 4.8% to ₹19,003 crore, while the EBITDA margin improved to 43.1% from 41.6%, “reflecting disciplined cost management alongside steady revenue growth”, he added.

Vi’s average revenue per user (ARPU) – a crucial performance metric – reached ₹190 in the fourth quarter of FY26, an increase of 8.3% over the previous year. Monthly subscriber additions turned positive from February 2026, marking the first sustained improvement in customer growth in several years.

The telco ended FY26 with 192.8 million subscribers, including 128.9 million on 4G and 5G networks.

As a result of the improving financial profile, both CRISIL and ICRA upgraded the company’s credit rating to A- (Stable) during the year.

“FY26 was a year of resolution. FY27 begins a period of execution. The company enters this phase with greater financial clarity, improving operating performance and renewed capacity to invest,” Birla said.

Vi’s priorities include execution of the network investment programme, strengthening market competitiveness, and translating a stronger balance sheet into sustained growth in customers and earnings, he said.

Birla concluded that the telecom industry’s consolidation into three private operators and one state-owned player (BSNL) has “restored pricing discipline and improved the sector’s investment outlook”.