Vodafone Idea's Financial Struggles: A Bridge to Survival

Debt-laden telecom operator Vodafone Idea reported a narrowed loss of Rs 7,166.1 crore for the March quarter, down from Rs 7,674.6 crore a year prior. The company announced plans to raise up to Rs 20,000 crore, contingent on shareholder and regulatory approvals.

Vodafone Idea, grappling with significant debts including Rs 1,94,910.6 crore towards spectrum and AGR dues, is seeking further government support. Its revenue for the fourth quarter rose 3.8% year-on-year to Rs 11,013.5 crore, driven by a tariff hike and customer upgrades, resulting in an ARPU increase to Rs 175.

The telecom giant is set to expand its 5G services in key Indian cities by August 2025 while simultaneously negotiating with lenders to fund its capex plans. Despite recent setbacks, including a Supreme Court dismissal of its plea on AGR dues, the company remains optimistic about securing necessary support.

(With inputs from agencies.)