Vodafone Idea to Skip Fresh Equity Raise, Focuses on Debt Funding and AGR Relief

Vodafone Idea announced it is not considering a fresh equity infusion at this stage and will rely on bank loans, promoter backing and adjusted gross revenue (AGR) relief to support its three-year turnaround plan, as per CEO Abhijit Kishore.  

The company is targeting ₹25,000 crore in bank funding and ₹10,000 crore in non-funded facilities to fund a ₹45,000 crore capital expenditure programme over the period. Equity raising will be reviewed later, depending on how the business progresses. 

Capex Mix and Deployment 

The ₹45,000 crore capex plan comes on top of about ₹18,000 crore spent over the last six quarters. Around 70% of the new spending is earmarked for radio access networks, with the rest allocated to transport and core infrastructure.  

The company said spending will be front-loaded in the first 2 years to speed up network rollout and improve service coverage. 

Debt Metrics and Internal Funding 

Vodafone Idea reported annual EBITDA of about ₹9,200 crore, with a debt-to-EBITDA ratio of roughly 2.5x. Management said internal cash generation, incremental borrowing and operational efficiencies will be used to fund both network investments and statutory payments. Promoters reiterated their ongoing support and engagement with the business. 

AGR Dues and Reassessment Process 

AGR dues have been frozen at ₹87,695 crore as of 31 December 2025, with repayments scheduled over a 10-year, back-ended period. Around ₹80,000 crore has been recognised on the balance sheet, with the remaining amount disclosed as a contingent liability.  

A reassessment of AGR dues for FY07-FY19 is underway, though no timelines or estimates of potential relief were provided. 

Spectrum Payment Obligations 

The company faces spectrum payment obligations of about ₹49,000 crore over the next 3 years, including roughly ₹7,000 crore in the first year, ₹15,000 crore in the second and about ₹27,000 crore in the third.  

Vodafone Idea said it is not seeking any moratorium and has incorporated these payments into its cash flow planning. 

Read More:  Vodafone Idea Share Price in Focus; Revenue Rises 1.9% in Q3FY26 Results! 

Vodafone Idea Share Price Performance  

As of January 29, 2026, 9:59 am, Vodafone Idea share price was trading at ₹9.88, a 0.70% decrease from the previous closing price. 

Conclusion 

Vodafone Idea’s turnaround plan is centred on debt funding, structured repayments and network investment, with equity fundraising deferred while the company monitors cash flows, liabilities and regulatory outcomes. 

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