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Informist, Monday, Aug. 18, 2025

 

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--Vodafone Idea: Confident subscriber metrics will continue to improve 
--CONTEXT: Comments by Vodafone Idea mgmt in post-earnings analyst call 
--Vodafone Idea: Looking at other sources of funding to continue investing 
--Vodafone Idea: Larger quantum of capex will need new funding 
--Vodafone Idea: To incur INR 50 bln-INR 60 bln capex by Sept 
--Vodafone Idea: Don't expect much change in number of sites in Jul-Sept 
--Vodafone Idea: Hope to add higher number of sites in Oct-Mar vs Jul-Sept 
--Vodafone Idea: In talks with govt to provide banks clarity on AGR 
--Vodafone Idea: Requested govt to resolve AGR issue before March 
 

 

By Arya S. Biju and Sunil Raghu

 

MUMBAI – Vodafone Idea Ltd. is on track to meet its planned capital expenditure target of INR 50 billion to INR 60 billion in the first half of 2025-26 (Apr-Mar) despite spending a lower amount in the June quarter, the company's management said in a conference call with analysts Monday post its earnings announcement. "...larger quantum of capex (capital expenditure), which is a part of our plan, will require new funding to come, for which I think we have mentioned that we are engaged with the banks and also looking at some other sources of funding so that we can maintain the continuity of our capex," a top company official said in the call. 

 

The telecommunication company's capital expenditure during the June quarter was INR 24.4 billion. The company is currently in talks with lenders to secure finance as it continues to invest in network expansion and to accelerate its broader capital expenditure plans, Vodafone Idea said.

 

"We remain actively engaged with our lenders for tying up debt funding towards the execution of our long-term network expansion plan. The recent conversion of spectrum auction dues into equity and the credit rating upgrade have supported these discussions to move forward," Chief Executive Officer Akshaya Moondra said. In addition to the rollout of fifth-generation network services, the company continues to invest in expanding its high-speed broadband network's coverage and capacity by adding new fourth-generation sites and upgrading its core and transmission network, the company had said in a press release after announcing its earnings Thursday. 

 

"With these initial investments, which have resulted in increased coverage and capacity and as a result offer better customer experience, the subscriber decline was restricted to just 0.5 million during the June quarter," the management said. This was lower than the 1.6 million subscribers the company lost in the March quarter and the 5 million subscribers lost in both the December and September quarters of the previous financial year. "We are confident that these trends will improve further as the investment continues," the management said.

 

However, the company does not expect a significant change in the number of sites during the September quarter, as it is primarily involved in the enhancement of capacity at its existing sites. "Any significant increase in the new sites would depend largely on the new funding," the management said. However, Vodafone Idea expects to see higher number of sites in the second half of the current financial year as it deploys some of its internal cash generation for capital expenditure.

 

The company is currently in talks with the government on settling its adjusted gross revenue dues, the management said. "Given that the government has made the conversion (spectrum auction dues into equity), and they are today the largest stakeholder in the company...we are quite confident that there will be a solution to AGR (adjusted gross revenue dues)," a top company official said. The company has requested the government to resolve this issue before the March deadline, the management said. With this, banks will get more clarity and the company can proceed with bank funding, the company added.

 

After market hours on Thursday, Vodafone Idea reported a consolidated net loss of INR 66.08 billion for the June quarter, down from INR 71.66 billion in the Jan-Mar quarter supported by lower finance costs, depreciation, and amortisation expenses. Revenue for the quarter remained largely unchanged at INR 110.23 billion from INR 110.14 billion in the previous quarter. On the National Stock Exchange, shares of the company Monday closed more than 5% higher at INR 6.46.  End

 

Edited by Ashish Shirke

 

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