Vodafone Idea Gets an Upgraded Rating from CARE

Reported by Tanay Singh Thakur January 31st, 2026 at 06:50 am

Vodafone Idea's business still has a high risk profile according to the ratings agency due to high leverage business. Not only are there thousands of crores left to be paid in AGR and Spectrum Usage Charghes (SUCs).

Most readers read for free. A small group from the TelecomTalk community keeps this going. Support only if our work adds value for you.

Highlights

Vodafone Idea Limited (VIL), the third-largest telecom operator in India, has received a revised and upgraded rating from the CARE Ratings.
The rating has moved from 'stable' to 'positive'. This is a great sign for the telco.
The development takes place after the AGR (adjusted gross revenue) dues relief from the government, and the announcement of Rs 45,000 crore capex (capital expenditure) plan for the next three years.

vodafone idea gets an upgraded rating from

Vodafone Idea Limited (VIL), the third-largest telecom operator in India, has received a revised and upgraded rating from the CARE Ratings. The rating has moved from 'stable' to 'positive'. This is a great sign for the telco. The development takes place after the AGR (adjusted gross revenue) dues relief from the government, and the announcement of Rs 45,000 crore capex (capital expenditure) plan for the next three years.

In a statement, CARE Ratings said, "Revision of the outlook to ‘Positive’, while reaffirming the rating assigned to the long-term bank facilities, follows the announcement on adjusted gross revenue (AGR) relief by the Department of Telecommunication (DoT), which strengthens VIL’s long-term debt tie-up prospects in accelerating network capex investments, thus enabling improvement in its operating performance."

Vodafone Idea's business still has a high risk profile according to the ratings agency due to high leverage business. Not only are there thousands of crores left to be paid in AGR and Spectrum Usage Charghes (SUCs), but there's also plenty of debt that the company is taking up to deploy in the business.

The Rs 45,000 crore capex plan for the next three years is largely driven by debt. Also, Care cautioned that the spectrum charges could go up sifinificantly from FY28. "The company’s ability to service these obligations hinges upon timely execution of network capex, tariff actions, and operating leverage-led improvement in cash flows," the ratings agency said.

In the near future, Vi is expected to receieve Rs 5,836 crore from the Vodafone Group, in the form of cash infusion of Rs 2,307 crore in the next 12 months, and the balance from sale of proceeds from the sale of telco's 328 crore shares earmarked by Vodafone Group. Vi needs to start adding subscribers soon, or arrest the current rate of subscriber loss at least. That could trigger another re-rating for the business.