Vodafone Idea has seen a reduction in its Adjusted Gross Revenue (AGR) liabilities after a revision by the Department of Telecommunications.
The dues now stand at ₹64,046 crore, down from ₹87,695 crore. Most of the payments have been pushed to FY36-FY41, delaying cash outflows and providing near-term relief on liabilities.
As per The Economic Times reports, a consortium led by State Bank of India is considering a ₹25,000 crore term loan for the company. In addition, around ₹10,000 crore is being sought for working capital needs.
Discussions between lenders and the telecom operator have continued over recent months, with banks reviewing the company’s financial position after the revised AGR structure.
The company has outlined a capital expenditure plan of ₹45,000 crore over 3 years. This includes spending on network upgrades and rollout of 5G services in select markets. It has already invested about ₹18,000 crore, with some improvement in network performance.
Internal projections include double-digit revenue growth and a threefold rise in EBITDA over the same period.
Banks have indicated that while the AGR relief improves cash flow visibility, concerns remain. The company has lost subscribers to competitors such as Reliance Jio and Bharti Airtel.
It also faces upcoming spectrum payment obligations of ₹7,000 crore in FY27, ₹15,000 crore in FY28 and ₹28,000 crore in FY29. Revenue levels and average user earnings continue to be key factors under review.
Lenders have not indicated willingness for a single-bank exposure, and wider participation is being discussed. The presence of promoters including the Aditya Birla Group is seen as a supporting factor.
However, banks are seeking clearer visibility on cash flows and repayment capacity before taking a final decision.
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As of May 4, 2026, 10:06 am, Vodafone Idea Ltd share price was trading at ₹10.63, up 4.01% from the previous closing price.
The AGR revision has improved the company’s immediate financial position and reopened funding discussions. Final decisions on lending will depend on participation from multiple banks and the company’s ability to meet future payment obligations.
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Published on: May 4, 2026, 10:17 AM IST
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