Vodafone Idea explores non-banking funding for capex continuity.

Vodafone Idea is exploring non-banking funding sources to maintain capex continuity, as banks await clarity on the AGR issue. The company's board has approved a leadership change, with COO Abhijit Kishore becoming CEO. Vodafone Idea has a net debt of over Rs 2 lakh crore and an AGR liability of around Rs 75,000 crore. The government holds a 49% equity stake in the company.

Vodafone Idea (VIL) is exploring non-banking funding options to sustain its capital expenditure (capex) plans, as banks await clarity on the adjusted gross revenue (AGR) matter. The company reported a widened loss in the June 2025 quarter but saw increased revenue and ARPU. Vodafone Idea's CEO, Akshaya Moondra, announced the company's intention to seek alternative funding sources to maintain capex continuity, stating that the banks are looking for clarity on the AGR issue before issuing debt [1].

The company's board has approved the elevation of Chief Operating Officer Abhijit Kishore to the position of Chief Executive Officer, effective from August 19. Kishore will replace Moondra, whose three-year tenure ends on August 18. Moondra emphasized the company's ongoing engagement with banks for credit, while also exploring non-banking funding sources [1].

Vodafone Idea, which has a net debt of over Rs 2 lakh crore and an AGR liability of around Rs 75,000 crore, is banking on the Department of Telecom's support to resolve the AGR issue before March 2026, when it is scheduled to begin AGR repayments in six equal installments [1, 3]. The government, which holds a 49% equity stake in the company, has been supportive in the past, providing relief measures such as deferment of spectrum installments and conversion of government dues to equity [1, 3].

Despite a widening loss in the June 2025 quarter, Vodafone Idea's capex of Rs 2,440 crore helped arrest customer losses, which fell to 5 lakh from about 50 lakh in the September and December 2024 quarters. The company's subscriber base stood at 19.77 crore, including 12.74 crore 4G and 5G users. Vodafone Idea has launched 5G services in 22 cities and plans to extend coverage across its 17 priority circles by September [1, 3].

The company's financial challenges have heavily impacted its 5G rollout, which only launched in March, two-and-a-half years behind schedule. Vodafone Idea has expanded its 5G network to 22 cities since launching the service earlier this year [2].

References:
[1] https://m.economictimes.com/industry/telecom/telecom-news/vodafone-idea-looking-for-non-baking-funding-sources-for-capex-continuity-ceo/articleshow/123367846.cms
[2] https://www.datacenterdynamics.com/en/news/vodafone-idea-names-abhijit-kishore-as-ceo/
[3] https://www.businesstoday.in/latest/corporate/story/with-rs2-lakh-crore-debt-and-agr-dues-vodafone-idea-eyes-non-bank-funds-to-keep-capex-going-489940-2025-08-18