After AGR relief, ARPU growth is Vi's top priority

Analysts flag ₹340 target as spectrum payments kick in

- URVI MALVANIA

VODAFONE IDEA WILL need its average revenue per user to nearly double by FY28 to around ₹340 from current levels to service looming spectrum payments that begin this year, analysts said, highlighting that the telco's financial stress has only partially eased despite recent regulatory relief.

Under the revised AGR framework, Vodafone Idea's legacy dues have been frozen at around ₹87,695 crore, with no further interest accrual. Annual payments are capped at a token level until FY35, pushing the bulk of repayments to FY36 onwards.

In net present value terms, brokerages estimate this translates into debt relief of about ₹53,500 crore, materially improving near-term cash flow visibility and reducing headline leverage.