Crisil Ratings has upgraded the bank facilities of Vodafone Idea to ‘Crisil A-/Stable’, citing continued support from the Aditya Birla Group, improving operating metrics, and easing regulatory liabilities.
The ratings agency said Vodafone Idea remains strategically important for the Aditya Birla Group, highlighting Kumar Mangalam Birla’s appointment as chairman and the group’s repeated financial backing through equity infusions and financing support. Crisil also pointed to the group’s recent commitment to invest Rs 4,730 crore through share warrants as evidence of continued support.
“The ratings also reflect VIL’s meaningful market position in the Indian mobile services market with a subscriber market share of 15.68% as of March 2026 (based on data from TRAI) and its presence across all the 22 telecom circles. While the company has been losing subscribers and market share in the past, the subscriber loss is expected to be arrested on the back of planned investments over the next 2-3 fiscals and resultant improvement in service levels,” Crisil said in its report.
The company’s 4G coverage increased to nearly 86% in March 2026 from around 77% in March 2024 after cumulative capex of about Rs 18,000 crore over fiscals 2025 and 2026. Subscriber losses have moderated sharply in recent months, while blended average revenue per user (ARPU) rose to Rs 174 in the March 2026 quarter from Rs 146 two years earlier, aided by tariff hikes and an improving subscriber mix.
The agency added that the government’s decision to defer adjusted gross revenue (AGR) dues until fiscal 2035 has significantly eased near-term liquidity pressure. However, it cautioned that Vodafone Idea’s financial profile remains weak because of sizeable spectrum liabilities, with repayments set to rise sharply from fiscal 2028 onwards.