Vodafone Idea (Vi) is once again in the spotlight, and not for the best reasons. The debt-laden telecom operator is trying to raise fresh funds to meet its future obligations, even as losses continue to mount.
The company recently reported a consolidated net loss of ₹6,608 crore for the latest quarter. Losses of this scale have become routine for Vi, largely because of its massive debt burden.
Debt Mountain Crosses ₹2 Lakh Crore
As of June 30, 2025, Vi’s total outstanding debt, including bank loans, spectrum dues, and adjusted gross revenue (AGR) liabilities, stood at a staggering ₹2 lakh crore.
Despite the challenges, the company did post a positive sign on the revenue front. Revenue from operations rose 5% year-on-year to ₹11,022.5 crore, supported by higher user spending. Average Revenue Per User (ARPU), a key industry benchmark, jumped 15% to ₹177, giving some relief to the struggling telco.
Leadership Change at the Top
Vi’s board has approved a leadership reshuffle. Chief Operating Officer Abhijit Kishore will take charge as CEO from August 19, replacing Akshaya Moondra, whose three-year term ends a day earlier.
Fundraising Efforts Continue
The company has already managed to raise around ₹24,000 crore in equity funding, but that’s far from enough because of Vodafone Idea’s huge debt. The Company is in Talks with many banks for up to ₹25,000 crore in debt financing to shore up its finances.
Still, the balance sheet remains deeply stressed. As of the end of the quarter, Vi’s net worth was negative at ₹76,934.6 crore. Debt worth ₹1,715.2 crore from banks is due by June 2026, excluding interest. On top of that, another ₹210.8 crore has been reclassified as short-term borrowing due to covenant breaches.
DoT Support
Vi’s future also hinges on regulatory relief. The company is banking on support from the Department of Telecommunications (DoT) in the AGR matter. The first installment of these dues is scheduled for March 31, 2026.
Expanding 5G and 4G Networks
On the operations side, Vi is pushing ahead with its network expansion. The telco has already rolled out 5G services in 22 cities across 13 circles and aims to cover all 17 circles where it holds 5G spectrum by the end of this month. Investments are also being made in 4G infrastructure, with more towers being added.