FY27 will be a year of execution and delivery for Vodafone Idea, says Kumar Mangalam Birla

Vodafone Idea’s non-executive chairman Kumar Mangalam Birla on Thursday said FY27 will be a year of execution and delivery for Vodafone Idea.

“The current fiscal year will be a year of execution and delivery for Vodafone Idea, which has already placed capex orders worth Rs 9,000 crore,” Birla said at the 31st Annual General Meeting of the company on Thursday.

"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," he added.

What led to one time profitability spike in Vodafone Idea?

Since the merger of Vodafone and Idea, the combined entity has achieved its first net subscriber additions in the June quarter of FY27.

April-June 2026 was the first quarter after a long gap when Vi recorded growth in subscriber base on a quarterly basis.

On a year-on-year basis, Vi recorded around a 2 per cent decline in subscriber base to 19.31 crore in the June quarter from 19.77 crore a year earlier. However, the net addition of the company grew on a quarterly basis.

Birla said that the reduction in liability, together with the recognition of the present value of future payments, was one of the primary reasons for the one-time profit after tax of Rs 34,552 crore.

"More importantly, it removed a major source of uncertainty by establishing a clear long-term repayment schedule," he said.

What support has govt provided to Vodafone Idea?

The government has slashed adjusted gross revenue liability on debt-ridden Vodafone Idea by about 27 per cent to Rs 64,046 crore after reassessment of statutory dues.

The Department of Telecom has 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.

Following reassessment, Vi 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.

Birla said 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. It has already selected 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.

He said Vi's 5G rollout also progressed steadily, with 5G services available in over 200 cities and further expansion planned across all key circles where it holds spectrum.