The Indian business tycoon and Chairman of the Aditya Birla Group, Kumar Mangalam Birla has recently showed confidence on Vodafone Idea Limited (VIL). Birla led Aditya Birla Group is already a promoter of Vodafone Idea, the third-largest telecom operator in the country. Over the last few years, it was seen that Birla wanted to exit out of his stake in the ailing telco. Things were not really in the best shape for Vi. However, after the recent quarterly results (for Q3 FY26), Birla acquired additional stake in Vi. This shows that the business tycoon is now showing confidence in Vi's ability to improve its business in the coming quarters.
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Vi is raising capital via debt to infuse it into the capex (capital expenditure) for the coming years. The telco has set an ambitious target of raising another Rs 35,000 crore to improve its business. Vi is now looking to invest more in the networks, be it 4G or 5G, to compete in the network coverage and speed segments with the other telcos.
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Things particularly look better for Vi compared to the previous quarters because the government has now frozen its AGR (adjusted gross revenue) dues and is also reassessing the amount the telco needs to pay. The frozen dues will largely be payable after 10 years, in 2036, which is a great thing for the telco's cash flow. If and when the amounts are reassessed, it will further help the telco's ability to raise funds from the market. The Indian government has made one thing clear, and it is that it doesn't want a duopoly of Airtel and Jio in the market.
This brings Vi in a great position. However, the telco still needs to add new users in the future to make a difference.
