Airtel’s Request for Equity Swap Likely to Be Rejected by DoT: Report

Reported by Kripa B July 1st, 2025 at 10:31 am

Department of Telecommunications cites Airtel’s strong financials as reason to deny bailout-like support similar to Vodafone Idea.

Highlights

DoT believes Airtel is financially sound and doesn’t need a bailout.
Airtel posted Rs 33,556 crore net profit in FY25—up 4x from last year.
Vodafone Idea, by contrast, reported a Rs 27,383 crore loss.

Bharti Airtel's request to convert its statutory dues into equity—similar to the government's bailout of Vodafone Idea—is unlikely to be approved. The Department of Telecommunications (DoT) believes Airtel is financially strong and does not warrant such support, The Times of India reported, citing government sources.

Also Read: Airtel Seeks Urgent AGR Dues-to-Equity Conversion Amid Mounting Promoter Debt

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Government's Stand

In April, Airtel surprised many by seeking a conversion of its spectrum and Adjusted Gross Revenue (AGR) dues into equity. If accepted, the government would have gained a stake in Airtel, as it did with Vodafone Idea, where it now owns 49 percent.

Comparing Financials

However, DoT's preliminary assessment indicates that Airtel, unlike Vodafone Idea, is financially robust. In FY25, Airtel's net profit rose over fourfold to Rs 33,556 crore, with revenues climbing 15 percent to Rs 1.7 lakh crore. In contrast, Vodafone Idea posted a FY25 loss of Rs 27,383 crore, with a negative net worth of Rs 70,320 crore.

Also Read: Bharti Airtel’s AGR Dues to Be Scrutinised by DoT for Equity Conversion: Report

DoT's Preliminary Assessment

The DoT, which has conducted a preliminary review of Airtel's request, believes the proposal lacks merit. "There seems to be no need to discuss this proposal. The company is sufficiently healthy and does not appear to be in need of such a financial bailout," the report quoted top sources as saying.

Also Read: Bharti Airtel Writes to DoT for Equity Conversion of Statutory Dues

Equity Swap Missed Deadline

Airtel is estimated to owe around Rs 70,000 crore, including Rs 40,000 crore in AGR dues. Sources reportedly added that Airtel decided to seek the equity swap from the government as it believed that the step would help it conserve cash. However, officials noted that the deadline to apply for such a conversion ended on March 31, making Airtel ineligible.

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Reported By

Kripa B

Kirpa B is passionate about the latest advancements in Artificial Intelligence technologies and has a keen interest in telecom. In her free time, she enjoys gardening or diving into insightful articles on AI.