Vodafone Idea (VIL) CEO Akshaya Moondra stated that the company is actively working with the government to find a solution to the ongoing Adjusted Gross Revenue (AGR) issue. During the post Q4 FY25 earnings call, he expressed confidence that the government is not restricted from offering relief to the telecom operator.
“I see no reason why the government should be constrained in any way to offer relief,” Moondra said, referring to a 2021 Supreme Court ruling that identified AGR reforms as a policy matter for the government to decide.
AGR dues of Rs 30,000 crore weighing heavily on Vodafone Idea
Vodafone Idea has been struggling with high AGR dues, reportedly around Rs 30,000 crore, along with a shrinking subscriber base. TRAI data shows the company lost 6.47 lakh mobile subscribers in April, bringing its total to 20.47 crore.
Last month, the Supreme Court rejected VIL’s plea related to AGR, dealing a major blow to the telco’s efforts. The company had warned the telecom department that without government support, it may not survive beyond FY26.
“As far as government relief is concerned, I think we are engaged with the government… what the government will do, I cannot comment on their behalf. But definitely post the judgment, we continue our engagement to find a solution,” he said regarding the AGR dues.
Vodafone Idea CEO stresses need for fairer data pricing in telecom sector
Moondra emphasized the need for a new pricing system in the telecom sector. He said heavy data users should pay more in proportion to their usage. “Incremental data usage comes at an extremely low, unsustainable price,” he added, stressing the importance of a fairer pricing structure.
He also highlighted the challenges facing the telecom industry, pointing out that India’s Average Revenue Per User (ARPU) is the lowest in the world, and industry returns are below the cost of capital.
Moondra clarified that although the government holds a 49 per cent stake in Vodafone Idea after converting dues to equity, it has no intention of taking a seat on the company’s board. “There is no intent to take up any board seat; the government’s shareholding is a consequence of providing support in reducing dues,” he said.
Vodafone Idea reports narrowing losses; Board approves its Rs 20,000 cr fundraising proposal
Despite losses, Vodafone Idea reported a narrowing of its quarterly losses to Rs 7,166.1 crore in Q4 FY25, down from Rs 7,674.6 crore the previous year. Revenue rose 3.8 per cent year-on-year to Rs 11,013.5 crore.
For the full year FY25, losses narrowed to Rs 27,383.4 crore from Rs 31,238.4 crore, while revenue grew 2.1 per cent to Rs 43,571.3 crore.
Vodafone Idea’s board has approved a fundraising plan of up to Rs 20,000 crore, subject to shareholder and regulatory approvals. The funds may be raised through public offers, private placements, or other permitted means.