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

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.

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

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