Company targets faster network expansion as CEO Abhijit Kishore says additional bank funding is in progress
New Delhi: Vodafone Idea (Vi) is set to accelerate its capital expenditure (capex) programme after securing its first tranche of ₹6,400 crore in funding from banks during the quarter ended June 2026.
The telecom operator is now working to raise additional funds from a consortium of public sector banks (PSBs), private Indian banks and foreign lenders, with discussions being led by State Bank of India (SBI).
Vodafone Idea CEO Abhijit Kishore said the company is confident of concluding discussions with lenders and securing additional funding to support its planned network expansion.
₹9,000 Crore in Capex Orders Already Placed
Kishore said Vodafone Idea has already placed capex orders worth ₹9,000 crore, including ₹1,930 crore of capex deployed in Q1 FY27.
Supplies and execution against these orders have already begun, with the company now looking to accelerate network expansion through fresh equipment orders placed with Ericsson, Nokia and Samsung, among other technology partners.
“We have already placed orders worth ₹9,000 crore for capex till now, which also includes the capex undertaken in Q1 FY27 of ₹1,930 crore,” Kishore said during the company’s earnings call.
He added that the company plans to deploy the capex over the next two quarters, targeting an average addition of approximately 3,500 4G sites per month.
₹45,000 Crore Three-Year Capex Plan
Vodafone Idea has outlined a broader ₹45,000 crore capex programme over the next three years.
According to Kishore, the funding architecture for the programme is based on three major lending groups:
- A consortium of public sector banks led by SBI, with six to seven participating banks.
- A group of Indian private-sector banks.
- Foreign banks providing funding through External Commercial Borrowings (ECBs).
The company said it has made substantial progress with lenders across all three groups.
The first tranche of funding includes ₹1,183 crore from warrant proceeds and debt, along with non-funded facilities through ECBs and Indian private banks.
“We are hopeful of closing the discussions with PSBs, led by SBI, as well as continuing work on other debt-raised streams,” Kishore said.
Supply Chain Challenges Hit Q1 Capex
The company said geopolitical challenges and supply-chain constraints affected the pace of capex deployment during Q1 FY27.
With funding availability improving and equipment supplies underway, Vodafone Idea now expects to accelerate its network expansion programme.
Kishore said recent developments have increased the company’s confidence in its ability to participate more strongly in the telecom industry’s growth.
Bank Debt Falls Sharply
Vodafone Idea’s financial position has also seen a significant change in its bank debt.
The company’s bank debt stood at ₹211 crore as of June 30, 2026, compared with ₹1,926 crore a year earlier, representing a reduction of ₹1,715 crore.
The company had ₹6,558 crore in free cash and bank balances as of June 30.
The combination of fresh funding and available cash is expected to improve Vodafone Idea’s ability to finance its 4G and 5G network expansion in the near term while maintaining its longer-term targets.
4G Rollout Across 17 Priority Circles
Kishore said Vodafone Idea expects to complete its 4G rollout within 18 months across its 17 priority circles.
The company’s 5G deployment is expected to continue into the third year of its capex programme.
The accelerated network rollout is aimed at improving coverage and capacity as more customers migrate to higher-value 4G and 5G services.
Vi Retains Postpaid Customers
Addressing concerns over competition from Bharti Airtel’s Fastlane offering, Kishore said Vodafone Idea has not witnessed a decline in its postpaid customer base.
He said the company has recorded positive net additions in postpaid subscribers consistently over the past six to eight quarters.
“We have not seen any dip in the post-paid business,” Kishore said, adding that net additions have remained positive and continued to grow.
He also noted an increase in machine-to-machine (M2M) connections during Q1 compared with the previous quarter.
Losses Narrow to ₹3,754 Crore
Vodafone Idea narrowed its losses substantially to ₹3,754 crore in Q1 FY27, the quarter ended June 2026.
The improvement was supported by a shift among customers towards higher-value 4G and 5G services, which contributed to an increase in average revenue per user (ARPU), a key indicator of telecom profitability.
The company’s revenue from operations rose nearly 6% year-on-year to ₹11,689 crore, compared with ₹11,023 crore in the corresponding period a year earlier.
The revenue figure also exceeded market expectations, strengthening the company’s outlook as it works to secure additional financing and accelerate its network expansion.
