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Bharti Airtel in Discussions with Govt Regarding AGR Dues to Equity Conversion: MD Gopal Vittal

Written by: Team Angel OneUpdated on: 7 Aug 2025, 5:41 pm IST
Airtel seeks govt nod to convert ₹40,000 crore AGR dues into equity, while preparing for payments and expanding into cloud, broadband, and enterprise services.
Bharti Airtel in Discussions with Govt Regarding AGR Dues to Equity Conversion: MD Gopal Vittal
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Bharti Airtel has approached the government to request the same relief given to other telecom operators in relation to adjusted gross revenue (AGR) dues, says MD Gopal Vittal. The company referred to the recent conversion of Vodafone Idea’s spectrum dues into equity as a reference point. As per reports, Airtel has left the decision to the government but stated it is ready to comply either way.

₹40,000 Crore Equity Conversion Proposal

As per news reports, in April 2025, Airtel proposed converting about ₹40,000 crore of its AGR dues into equity. If approved, this would result in the government holding a 3-4% stake in the company. The Department of Telecommunications has not yet responded to this proposal. Airtel has clarified that this was a request to check if the option was available.

Upcoming AGR Payment Commitments

As per reports, the 4-year moratorium on AGR dues is set to expire in September. Airtel’s annual payments, including for AGR, will begin from March 2026. For the current year, the company has AGR-related dues of ₹5,054 crore and spectrum dues of ₹538 crore. Over 5 years, total deferred payments stand at ₹51,243 crore.

Airtel’s Growth in ARPU and Subscribers

Airtel reported an average revenue per user (ARPU) of ₹250 for the June quarter. The company added 700,000 postpaid users, taking the total to 26.6 million. Net profit for the quarter rose 43% year-on-year to ₹5,948 crore. Revenue grew to ₹49,463 crore, up 28.5% from the previous year.

The company is expanding into cloud, cybersecurity, and data centre services. Airtel launched its sovereign cloud product, targeting Indian firms with data localisation needs. Vittal estimated the market size at ₹60,000 crore. The B2B segment revenue, however, declined 7.7% year-on-year.

Airtel added 939,000 Wi-Fi customers in the June quarter, taking the base past 11 million. Revenue from the homes business rose 25.7% to ₹1,718 crore. The company is testing unlicensed band radio technology in low-density areas as a complement to its fibre broadband offering.

Read More: Bharti Airtel Q1 FY26 Results; Net Profit Jumps 43% YoY, ARPU Rises to ₹250!

Bharti Airtel Share Price Performance 

As of 09:48 AM on August 7, 2025, Bharti Airtel share price was trading at ₹1,918.30, a 0.59% decrease

Conclusion

Airtel continues to manage its AGR obligations while exploring government-approved options for conversion. It is also investing in adjacent digital segments to expand its business beyond telecom.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Aug 7, 2025, 9:51 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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