Voda-Idea to prioritize vendor dues repayment from FY26

Vodafone Idea will prioritize payments of vendor dues from internal cash generation starting FY26, after settling a bulk of the outstanding debt of 35,400 crore in the next fiscal year, its chief executive officer Akshaya Moondra said at an earnings call on Tuesday.

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"The easing of debt situation does help us in setting aside some capital or some cash for capex. However, we also have an overdue vendor position and in the first phase as cash is not going towards debt servicing, we will be able to use it towards reduction of vendor dues and that will be a first priority," Moondra told analysts at the call.

Vodafone Idea has begun paying off vendor dues, with the latest being payments made to Indus Towers, the tower provider to the carrier that is essential for telecom services.

Indus Towers' top executive said in its quarterly earnings call last week that one of its clients not naming Vodafone Idea paid up an extra ₹300 crore towards pending dues in the October-December quarter, in addition to the full payment of monthly current dues. Vodafone Idea owes Indus about ₹5,700 crore as of December 2023, for which the tower company has made a provision for doubtful debts.