Bharti Airtel on Wednesday said it is fully equipped to meet its adjusted gross revenue (AGR) obligations, even as it has written to the government seeking the same treatment extended to other telecom players, hinting at the recent relief given to Vodafone Idea.
“We have written to the government to extend the same relief as any other telco, but that is a decision the government will take, and we will abide by whatever decision they make,” Gopal Vittal, vice-chairman and MD of Airtel, said during the company’s earnings call after announcing June-quarter results. “To that extent, I would say we have the room to make whatever payments are required,” Vittal added.
The request comes ahead of the expiry of the four-year moratorium on AGR dues in September. Annual repayments, including for Bharti, are set to begin in March 2026. As per its FY25 annual report, Bharti has AGR-related deferred payments of Rs 5,054 crore due within the year, in addition to Rs 538 crore in spectrum dues. Over five years, its total deferred payment liability stands at Rs 51,243 crore.
In April, Bharti had proposed converting around Rs 40,000 crore in AGR dues into equity, a move similar to the government’s decision in March to convert Vodafone Idea’s Rs 36,950 crore dues into equity. The company did not say whether there’s been any government response. Back in May, the Supreme Court dismissed pleas by Bharti and others for a waiver on interest and penalties related to AGR dues.
Clarifying the company’s position on equity conversion, Vittal had earlier said, “We just wanted a non-discriminatory level-playing field in terms of an option to convert. Whether we will convert or not is a decision for the board to take”.
Diversifying Beyond Traditional Telecom Services
Bharti is also sharpening focus on its enterprise and cloud businesses. “We are investing in areas like security, cloud, and data centres,” Vittal said. Recently, the company launched its sovereign cloud offering, eyeing the growing demand for data localisation among Indian enterprises. Vittal pegged the potential market at Rs 60,000 crore and said the company is embedding AI into its digital platforms, though he did not share further details.
On future Arpu drivers, Vittal said, “The penetration of international roaming is still abysmally low. The penetration of postpaid is still very low”. Bharti added 700,000 postpaid users during the quarter, taking the base to 26.6 million.
Expanding Home Broadband and Future ARPU Drivers
The homes business saw a 25.7% jump in revenue to Rs 1,718 crore. Bharti added 939,000 new Wi-Fi users, with the customer base crossing 11 million. Vittal said fiber remains the focus for home broadband, with fixed wireless access acting as a complementary option. On trials for unlicensed band radio (UBR), he said it could work in low-density areas but may face interference issues in cities.
