Vodafone Idea Limited (VIL), the third-largest telecom operator in the country, could announce dividends for the Q4 results. This is because Vi has likely paid Indus Towers the remaining Rs 500 crore that it owed in Q4 FY25. Indus Towers rising free cash flow could mean that a dividend is loading for the investors.
BofA Securities said, "We expect Vi receivables of ?500 crore to be cleared in 4QFY25 and also expect Indus to announce dividends along with its 4Q results." The companies are expected to soon announce quarterly results with which the picture will become clearer. Indus Towers will announce its results on April 30, 2025. Note that Indus Towers is now a Bharti Airtel subsidiary. So the company has had a policy of clearing the excess cash (board-determined) or 100% of the free cash flows (FCF) as dividends for the investors.
Read More - Vodafone Idea’s Cheapest 5G Plan: Take a Look
With this policy, it is expected that Indus Towers will announce a dividend of more than Rs 20 per share, said UBS, a Swiss Brokerage. Indus management was previously very doubtful of being able to clear a dividend for the investors because of Vi's financial situation. The telco has now been clearing debt fast of the banks and the vendors and also recently got a credit rating upgrade from CARE.
Read More - India Adds Over 4,440 5G BTS in March 2025, Possibly Driven by Vodafone Idea
Vodafone Idea is trying to raise more funds from banks via debt. The upgraded credit rating in addition to government's support with the adjusted gross revenue (AGR) dues will definitely help the telco in the near future. The better the business functions and finances improve for Vi, the better it is for Indus Towers also. The eyes of the investors will now be on the April 30 results of Indus Towers.
