Debt-ridden Vodafone Idea is working very closely with the government and expects to come up with the best, long-term solution to its Rs 78,500 crore adjusted gross revenue dues, a top official of the company has said.
During the company’s earnings call on Tuesday, Vodafone Idea CEO Abhijit Kishore said the company is engaging multiple sources, including banks and non-banking finance companies, for fundraising, which also depends on the resolution of the AGR matter for long-term funding.
A relief from Supreme Court
“We are looking at the solution which we believe will be best, and with a long-term view from the government. Our sense is that since the Supreme Court order has come recently, there would be a little bit of a dependency on that with the banks when they are looking at long-term funding,” Kishore said.
The company, during the quarter, received a favourable order from the Supreme Court that has allowed the government to reconsider and take an appropriate decision with reference to the additional AGR demand raised for the period up to the financial year 2016-2017 and comprehensively reassessing and reconciling all AGR (adjusted gross revenue) dues, including interest and penalty.
Kishore said the AGR liability of the company stood at around Rs 78,500 crore as of the end of September 2025.
Vodafone Idea’s current financial position
“As on September 30, 2025, Vi’s outstanding debt from banks (including interest accrued but not due) is Rs 15,421 million and deferred payment obligation (including interest accrued but not due) towards spectrum, which is payable over the years till FY2044 and AGR which is payable over the years till FY 2031 aggregates to Rs 2,014,090 million,” the company filing said.
VIL (Vodafone Idea Ltd) has incurred a loss of Rs 12,132 crore in the first half of the current fiscal, and its net worth stood at negative Rs 82,460 crore as on September 30.
The company’s total debt stood at Rs 2.02 lakh crore at the end of the reported quarter.
The company, however, has shown improvement in its financial performance, narrowing losses on a YoY basis during the reported quarter.
Vi’s consolidated net loss year-on-year narrowed to Rs 5,524 crore in the second quarter ended September 2025, mainly on account of savings in finance costs on bank debt and an increase in average revenue per user, supported by a tariff hike.
The finance cost of the Vodafone Idea reduced by about 27 per cent on a year-over-year (YoY) basis to Rs 4,784.4 crore in the September 2025 quarter from Rs 6,613.6 crore a year ago, mainly on account of a reduction in debt from banks.
VIL debt from banks reduced to Rs 1,542 crore in the September quarter from Rs 3,250 crore.
Kishore said that the company is mainly focusing on expanding network coverage to improve customers’ experience, and some investment will also be made to enhance network capacity.