NEW DELHI: The recent resolution of the AGR (Adjusted Gross Revenue) issue marks a decisive turning point for Vodafone Idea, said Aditya Birla Group Chairman Kumar Mangalam Birla on Wednesday.
Birla, in an “annual reflections” note for 2025–26, also said that government intervention in the AGR matter has provided significant relief to the company and that the operating environment has fundamentally changed.
“One sector that has had its fair share of shocks and volatility for over two decades is Telecom. Our joint venture, Vodafone Idea, has stood in the eye of this storm, navigating one of the most protracted periods of uncertainty in the industry’s history,” said Birla.
The ailing Vodafone Idea received relief from the Department of Telecommunications (DoT) on its AGR dues of ₹87,695 crore following a court order to the DoT. As per the repayment plan approved by the DoT, the telco will pay its Adjusted Gross Revenue (AGR) dues in instalments until March 2041.
India’s third-largest telecom operator said in an exchange filing that it will pay a maximum of ₹124 crore annually from March 2026 to March 2031, followed by ₹100 crore per year between March 2032 and March 2035. The balance AGR dues will be repaid in equal annual instalments over six years from March 2036 to March 2041.
Birla, one of the promoters of Vodafone Idea, also reiterated that the recent resolution of the AGR issue marks a decisive turning point.
“With long-standing uncertainty removed through the clarity of the Honourable Supreme Court’s judgment and the government’s decisive intervention, the operating environment has fundamentally changed. For the first time in years, the fog has cleared, allowing the business to look beyond survival, and focus on sustainable growth,” said Birla.
He further said that the telco’s experience underlines his belief that tough times do not last.
“Tough Companies Do. The company was carried through its most challenging years by the commitment of employees, loyalty of customers and the belief of business partners and shareholders. Equally vital was the government’s unflinching determination to revitalise the telecom sector, coupled with the firm conviction of the promoters on the long-term potential of the Indian telecom sector,” said Birla.
Birla also pitched for the need for three private telecom players in India, stating that the country deserves a successful Vodafone Idea.
On the financial front, Vodafone Idea reduced its net loss to ₹5,286 crore in the third quarter of FY 2025–26, compared with a loss of ₹6,609 crore in the same period last year. Revenue from operations rose 2% year-on-year and 1.15% quarter-on-quarter to ₹11,323 crore.
The company’s average revenue per user (ARPU) increased 3% sequentially to ₹172 per month from ₹167 in the previous quarter. Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at ₹4,816 crore, marking a 2.8% increase from ₹4,685 crore in the preceding quarter.