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Debt-laden telecom operator Vodafone Idea outlined an ambitious roadmap for FY26-29, targeting sustained subscriber additions, double-digit revenue growth, and a threefold increase in cash EBITDA over the period.
The management said this growth push will be driven by a capital expenditure programme of ₹45,000 crore over the next three years.
To fund this, the company plans to raise ₹25,000 crore through debt, in addition to arranging ₹10,000 crore in bank guarantees. The management ruled out any equity fundraising in the near term.
Vodafone Idea expects to meet cumulative spectrum payment obligations of ₹49,000 crore over the next three years through a combination of the proposed debt raise and internal accruals.
On tariffs, the company said the timing and extent of any price hikes will be led by the market leader, with Vodafone Idea expected to follow suit once an industry-wide move materialises.
Brokerage firm IIFL, however, flagged execution risks around the company's targets.
According to the brokerage, tripling cash EBITDA over three years would require a revenue CAGR of around 16%, implying market share gains from better-capitalised peers, which it described as a challenging task.
The company reported a mixed performance for the December quarter.
On a sequential basis, revenue rose marginally by 1.1% to ₹11,323 crore from ₹11,194.7 crore in the September quarter.
Net loss narrowed to ₹5,286 crore from ₹5,524.2 crore in the previous quarter, largely aided by an exceptional gain of ₹1,078 crore during the period.
However, on an adjusted basis, losses widened to ₹6,368 crore from ₹5,565 crore quarter-on-quarter.
EBITDA increased to ₹4,816 crore from ₹4,685.1 crore, while EBITDA margins improved to 42.5% from 41.9%.
Average revenue per user rose 3% sequentially to ₹172 from ₹167.
Capital expenditure during the quarter climbed to ₹2,250 crore, compared with ₹1,750 crore in the preceding quarter.
Subscriber metrics remained a key area of concern, with the company losing 3.8 million subscribers sequentially, marking the steepest decline in several quarters.
Vodafone Idea reported gross debt, including accrued interest, at ₹2.098 lakh crore. This comprises deferred spectrum liabilities of ₹1,24,877 crore, AGR dues of ₹80,502 crore, subject to revision based on the Department of Telecommunications' assessment, and ₹4,424 crore of borrowings from banks and financial institutions.
The company's cash balance stood at ₹6,960 crore at the end of the quarter, while net debt increased by nearly ₹3,000 crore quarter on quarter to ₹2.028 lakh crore.
Over the next 12 months, Vodafone Idea has repayment obligations of ₹1,126 crore towards banks and ₹7,001 crore towards spectrum dues.
The company said it remains confident of meeting these commitments. It also clarified that no AGR relief has been recognised in the December quarter, as the relief was received in January 2026.
Shares of Vodafone Idea ended Wednesday's session 2.34% higher at ₹10.06. The stock has gained about 40% over the past six months.
The management said this growth push will be driven by a capital expenditure programme of ₹45,000 crore over the next three years.
To fund this, the company plans to raise ₹25,000 crore through debt, in addition to arranging ₹10,000 crore in bank guarantees. The management ruled out any equity fundraising in the near term.
Vodafone Idea expects to meet cumulative spectrum payment obligations of ₹49,000 crore over the next three years through a combination of the proposed debt raise and internal accruals.
On tariffs, the company said the timing and extent of any price hikes will be led by the market leader, with Vodafone Idea expected to follow suit once an industry-wide move materialises.
Brokerage firm IIFL, however, flagged execution risks around the company's targets.
According to the brokerage, tripling cash EBITDA over three years would require a revenue CAGR of around 16%, implying market share gains from better-capitalised peers, which it described as a challenging task.
The company reported a mixed performance for the December quarter.
On a sequential basis, revenue rose marginally by 1.1% to ₹11,323 crore from ₹11,194.7 crore in the September quarter.
Net loss narrowed to ₹5,286 crore from ₹5,524.2 crore in the previous quarter, largely aided by an exceptional gain of ₹1,078 crore during the period.
However, on an adjusted basis, losses widened to ₹6,368 crore from ₹5,565 crore quarter-on-quarter.
EBITDA increased to ₹4,816 crore from ₹4,685.1 crore, while EBITDA margins improved to 42.5% from 41.9%.
Average revenue per user rose 3% sequentially to ₹172 from ₹167.
Capital expenditure during the quarter climbed to ₹2,250 crore, compared with ₹1,750 crore in the preceding quarter.
Subscriber metrics remained a key area of concern, with the company losing 3.8 million subscribers sequentially, marking the steepest decline in several quarters.
Vodafone Idea reported gross debt, including accrued interest, at ₹2.098 lakh crore. This comprises deferred spectrum liabilities of ₹1,24,877 crore, AGR dues of ₹80,502 crore, subject to revision based on the Department of Telecommunications' assessment, and ₹4,424 crore of borrowings from banks and financial institutions.
The company's cash balance stood at ₹6,960 crore at the end of the quarter, while net debt increased by nearly ₹3,000 crore quarter on quarter to ₹2.028 lakh crore.
Over the next 12 months, Vodafone Idea has repayment obligations of ₹1,126 crore towards banks and ₹7,001 crore towards spectrum dues.
The company said it remains confident of meeting these commitments. It also clarified that no AGR relief has been recognised in the December quarter, as the relief was received in January 2026.
Shares of Vodafone Idea ended Wednesday's session 2.34% higher at ₹10.06. The stock has gained about 40% over the past six months.
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