Abhijit Kishore, CEO of Vodafone Idea (Vi), said at the company’s second-quarter (Q2FY26) post-earnings call on Tuesday that the telco is working very closely with the government and expects to come up with the “best and long-term” solution for its AGR dues. Regarding tariff hikes, the CEO said the company “will kind of wait and watch.” Check what the company’s leadership said in response to a few of the analysts’ questions during the earnings call in the story ahead. Edited excerpts.
Q: Fundraising and Bank Engagements
Question: On the pending fundraise, I have two questions on this. Firstly, do you think banks, now that you must have been, you know, for the discussions with them over the last couple of weeks, do you think they will be waiting for an official relief package from the Government, which I suppose could take a few months, as there are no repayments due before March? Or could this be independent of when the relief package comes, now that we do have a Supreme Court verdict?
And just secondly, on this, what is the status of raising credit from non-banking sources that you have previously spoken about? Is that something where timelines could be advanced?
Vi CEO: So, on the first one, on the fundraising, I think, as you rightly said, we are engaged with, you know, the banks. And with the recent development of the Honorable Supreme Court, the order is pretty clear, and the Government being a 49 percent equity holder, and the Government making it also amply clear that, you know, in the Indian context, three private players are required.
We are looking at the solution which we believe will be best and for the long-term view from the Government. And our sense is that, since the Supreme Court order has come recently, might be there would a little bit of a dependency of that with the banks when they are looking at long-term funding. But we are engaged with them, and we are kind of working pretty closely. And as and when we get to hear, we'll come back to you.
Also Read: Vodafone Idea in Talks with Private Credit Funds Amid Uncertainty over Bank Financing
Q: Vi on Raising Credit from Non-Banking Sources
Question: You had spoken about raising credit from non-banking sources, I guess, private credit. So I just wondered, can that be something which can be advanced ahead of, say, funding from banks?
Vi: Yeah, so, sort of, I think we are, as we said, we are talking to many banks and the NBFCs both. And as and when we get closer to the deal, we'll come back to you. As we speak, we are engaged with multiple partners at this point in time.
Q: Vi on AGR Conclusion Timeline
Question: And just one last question, I mean, related to our [Vi’s] discussion going on with DoT and the Government with respect to AGR dues, what sort of timeline are we expecting in terms of some conclusion here? And against our dues, any thought process you can share? What is our ask with the DoT and the Government?
Vi: We welcome the order from the Honorable Supreme Court, and we are pretty hopeful, the Government being a 49 percent player, to look at a long-term solution, and we are engaged with the DoT. I cannot really give a timeline at this point in time on saying when this will get solved, but the Government has been extremely helpful, and we are very hopeful that it will be resolved as soon as possible.
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Q: Vi on ICR with BSNL and Alternative Domestic Vendors
Question: Now, there are a couple of media reports that talk about you doing trials with alternative domestic vendors. Several are named by the media. And secondly, a topic which is unrelated, one of your competitors has signed an ICR with BSNL. So, particularly in rural areas where the intra-circle roaming could perhaps help provide deep coverage, what are your thoughts on these two matters, and what can you discuss further to what is shared in the media on both these topics?
Vi CEO: To be honest, I do not want to comment on what the media has written as far as these are concerned. Some of these, you know, our discussion, once it rectifies, then it will be better for us to come back and talk to you. As we speak, there is no conversation that we are really having with anybody on the ICR at a BAU level.
And the first question that you said on the other partners, I mean, everybody keeps exploring that opportunity, which is what we are also doing. But there's no firm change of plan as we speak. You know, our partners from a network equipment point of view are pretty much, you know, what we have disclosed. So there's no change as we speak. But, yeah, from an evaluation point of view on the technical front, there would be some evaluation which we keep doing. And even the Government would want an indigenous vendor, and hence we would be exploring that opportunity clearly.
Q: Vi on 5G SA versus NSA Architecture
Question: On the technology upgrades and the debate on 5G Standalone versus Non-Standalone. So, previously, when you were talking about, say, your just-in-time Capex strategy, you would highlight that you are able to take advantage of advancements in technologies even within the standards, right, whether it's 4G or 5G. And there, that would help you economize on your deployments. So I want your thoughts, one, on this SA versus NSA debate on 5G, and secondly, is there a way for you to roll out your 5G network incrementally?
Vi: On the 5G, as you know, at Vodafone Idea Limited, we've kind of taken the route of NSA architecture, and, you know, that's what we are rolling out right now. And I think that's kind of doing the work for us. But yes, at the same time, I can also say that, you know, at any point in time that we feel like moving to the SA architecture, the one that we have right now is capable of moving to SA. When we feel the need to move to the SA architecture, we would evaluate that and do that.
As a second question of saying how and where we are going to go, I think, again, as I said, the balance of the Capex for this year, as well as going forward, is going to be a fair mix of getting to a 90 percent, providing capacity in the markets where we feel that there's congestion, and a fair bit of 5G as well.
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Q: Vi on Tariff Hike
Question: Obviously, you're in touch with the DoT on the AGR news, but do you think if any relief comes through, the tariff hike, or any potential tariff hike that gets delayed? How do you look at it?
Vi: Yeah, I mean, from a tariff hike point of view, if you really ask us, obviously, you know, it depends on, you know, how the industry takes shape and how the leaders take the position of the tariff hike. Is there a requirement for a tariff hike? The answer is yes. How fast and how soon can that happen? You know, we'll kind of wait and watch. I will not really link it to the DoT and the AGR judgment on that.
Vi CEO's Closing Comments
“Our investments have led to improved coverage and enhanced customer experience. 5G experience has been expanded to 29 cities and 17 circles. Our data usage has increased significantly by 7.8 percent quarter-on-quarter, showing increased engagement with our subscribers. We continue to keep exploring new avenues for debt funding for execution of our long-term network expansion plan. Thank you once again for joining us and for your continued confidence in our company. We look forward to updating you on our progress in the quarters ahead,” Vi CEO concluded the Q2FY26 earnings call.
