Vodafone Idea plans to accelerate the pace of capital expenditure (capex) after receiving an initial tranche of ₹640 billion from banks for the quarter ending June 2026. The company's CEO, Abhijit Kishore, stated on Tuesday that Vodafone Idea, supported by Aditya Birla Group, is in discussions with six public sector banks, including the State Bank of India, as well as several private Indian and international banks to secure External Commercial Borrowings (ECB) for additional funds.
Kishore told analysts during the earnings call for the quarter ending June 2026 that orders worth ₹900 billion have currently been placed for capital needs, which includes capital construction amounting to ₹1,930 billion in the first quarter of FY27. He emphasized that the supply and execution of these orders have already begun and will continue. Currently, the company is focused on accelerating network expansion through new orders from Ericsson, Nokia, Samsung, and other partners.
Furthermore, Kishore noted that geopolitical issues created supply chain constraints that slowed down capital expenditure realization in the first quarter of FY27. He added that the improving trend and recent positive developments increase the company's confidence in its ability to participate in industry growth.
Detailing the financing plan of the Aditya Birla Group, Kishore specified that the first tranche included partial receipts of ₹1,183 billion from warrants and debt instruments, as well as non-financial funds through ECB and private Indian banks. He explained that the overall financial structure supporting the ₹45,000 billion capital expenditure plan over the next three years consists of three groups. The first is a consortium of public sector banks led by SBI involving six to seven banks. The second group is private Indian banks, and the third is ECB with foreign banks. Kishore expressed satisfaction with the significant progress made with creditors across all three groups and the successful attraction of the first funding tranche.
The company demonstrated a substantial reduction in losses to ₹3,754 billion in the quarter ending June 2026 (Q1FY27). This was achieved through user migration and upgrades to more expensive 4G and 5G services, leading to an increase in Average Revenue Per User (ARPU), a key profitability metric. Meanwhile, operating revenue grew by approximately 6% year-on-year, reaching ₹11,689 billion compared to ₹11,023 billion.
Kishore also noted that thanks to the inflow of funds and cash reserves, the company's capacity to finance 4G and 5G network deployment in the near term has improved, while targets remain set for FY29. The company plans to complete 4G rollout in 17 priority circles within the next 18 months, and 5G implementation will transition into the third year of the capital expenditure plan. In response to analysts' questions about whether the Airtel Fastlane product poses a risk to Vodafone Idea's postpaid subscriber base, Kishore assured that the company has managed to retain its postpaid subscribers, which was reflected in the overall growth. The company recorded its highest net addition since the merger of Vodafone India and Idea Cellular in 2018. He also noted the growth in M2M subscribers, who are predominantly postpaid customers.
