28 August,2026 12:33 PM IST | New Delhi | mid-day online correspondent
Kumar Mangalam Birla. File picture.
With capex orders worth Rs 9,000 crore in place, telecom major Vodafone Idea's Chairman Kumar Mangalam Birla on Thursday said the current fiscal year will be a year of execution and delivery for the company, according to news agency PTI.
While addressing the shareholders at the company's 31st annual general meeting (AGM), Birla said, "As I look ahead, I believe FY27 will be a year of execution and delivery for your company. The foundations have been laid. Significant progress has been made in addressing legacy challenges, restoring financial flexibility, investing in network infrastructure and rebuilding momentum in the business."
The Aditya Birla Group committed to infusing Rs 4,730 crore through warrants in May 2026, of which Rs 1,183 crore was received in June 2026.
"As of August 2026, your company secured approximately Rs 6,400 crore of funding, including both fund-based and non-fund-based facilities, as well as the upfront proceeds from the warrants issued. Your company has already placed capex orders worth Rs 9,000 crore to maintain capex intensity," he said.
The company has rolled out a Rs 45,000 crore capex plan spread over three years starting September 2024 and has roped in telecom gear makers Nokia, Ericsson and Samsung for network expansion.
Birla said the company's focus post placement of the order now shifts to disciplined execution, operational excellence and translating these investments into sustainable growth and long-term value creation for all stakeholders.
Since the merger of the telecom firms Vodafone and Idea, the combined entity has achieved its first net subscriber additions on a quarterly basis in the June quarter of FY27, after a long time.
On a year-on-year basis, the company posted around a 2 per cent decline in subscriber base to 19.31 crore in the June quarter from 19.77 crore a year earlier.
He said Vodafone Idea's 5G rollout also progressed steadily, with 5G services available in over 200 cities. It will further expand its presence across all key circles where it holds spectrum.
The adjusted gross revenue (AGR) reassessment significantly strengthened Vodafone Idea's balance sheet and improved visibility on future cash obligations, Birla said.
Birla said that the reduction in liability, together with the recognition of the present value of future payments, was one of the main reasons for the one-time profit after tax of Rs 34,552 crore.
The government had slashed adjusted gross revenue liability on the debt-ridden firm by about 27 per cent to Rs 64,046 crore after reassessment of statutory dues.
"More importantly, it removed a major source of uncertainty by establishing a clear long-term repayment schedule," he said.
The Department of Telecom had frozen the AGR dues as of December 31, 2025, at Rs 87,695 crore. However, the amount was subject to reassessment by the DoT and final approval by a committee to be constituted by it to reassess the AGR dues, according to PTI.
Following reassessment, Vodafone Idea has to pay a minimum of Rs 100 annually over four years between March 2032 and March 2035. The remaining AGR dues have to be paid in equal instalments annually over six years, between March 2036 and March 2041, which will be Rs 10,608 crore annually.
(With inputs from PTI)
