Won't survive beyond FY26 without loans: Vi

Vodafone Idea Ltd's survival hangs in the balance, as it pleads before the Supreme Court for a waiver on massive government dues, with banks refusing loans.

- Jatin Grover & Devina Sengupta

The struggling telecom operator has said in a court petition that it will not be able to operate beyond the current fiscal year without bank funding, which remains elusive as lenders remain wary of its dues linked to adjusted gross revenue (AGR).

"It is humbly submitted that without bank funding, the petitioner company (Vodafone Idea) will not be able to operate beyond FY 2025-26, as it does not have the ability to pay AGR instalment of Rs 18,000 crore as per DoT (department of telecommunications) demands due in March 2026,"

Vodafone Idea said in its petition submitted to the Supreme Court on 13 May. Mint has reviewed the petition.

Vodafone Idea has sought a waiver on interest, penalty, and interest on penalty—together worth over ₹45,000 crore—on the ₹83,400 crore pending AGR dues. The four-year moratorium on these payouts ends in September.

After the recent conversion by spectrum dues to equity by the government, the company again approached the banks for debt funding, but "they have expressed their inability to progress till there is resolution of these large AGR annual instalments", the petition said.