Speaking at the 31st annual general meeting, Aditya Birla Group chairman Kumar Mangalam Birla said the company’s business plan factors in servicing all scheduled spectrum payments over the next three years. “Our AGR (adjusted gross revenue) payments are deferred to FY35… The current outstanding in terms of bank loans is only ₹225 crore today and, in the next three years, the business plan factors in payment of all spectrum dues,” he said.
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The repayment plan is significant because after the government slashed Vi’s AGR liabilities this year, the ₹49,000 spectrum dues were its biggest financial overhang.
ET BureauHowever, it is still unclear how the telco plans to service these payments. As per schedule, Vi is required to pay about ₹7,000 crore in FY27, ₹15,000 crore in FY28 and ₹27,000 crore in FY29.
Market analysts have raised doubts over Vi’s ability to demonstrate a credible repayment roadmap for these obligations. Lenders have also questioned whether Vi can generate sufficient cash flows to simultaneously fund network expansion, service debt and meet rising spectrum payment obligations.
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Numbers Show Operational Strength Returning
The company earlier said it does not intend to seek any further moratorium on spectrum payments and plans to meet obligations through a combination of higher ebitda, internal cash generation and fresh bank funding.
This runs parallel to Vi’s Rs 45,000-crore capital expenditure programme to expand 4G coverage and accelerate its 5G rollout.
Operationally, the company returned to monthly subscriber additions from February, expanded 4G population coverage to over 86%, increased its broadband tower count to more than 200,000, and ended FY26 with 192.8 million subscribers, including nearly 129 million 4G and 5G users, Birla said.
Vi’s 5G services are now live in more than 200 cities and towns and will expand to around 450 cities over the next two to three months. Over the past six quarters, the telecom operator has added 32,000 4G sites and 16,000 5G sites, increasing network capacity by 47% and improving 4G population coverage from 77% to 87%. The telecom aims to expand coverage to 95% of the population in its operating circles within the next five to six quarters.
Vi has significantly strengthened its financial position in FY26 by raising Rs 3,300 crore through non-convertible debentures and concluding the settlement of Rs 6,394 crore of receivables from Vodafone Group.