Vodafone Idea upgraded to BBB by ICRA, outlook turned positive after AGR relief

The positive outlook elements in expectations of wholesome income and revenue development, supported by well timed capex rollout and potential tariff hikes.

Credit standing firm ICRA Restricted upgraded Vodafone Idea’s (Vi) score to BBB and revised the outlook for ‘Lengthy Time period-Fund Primarily based – Time period Loans’ from ‘Secure’ to ‘Positive’ on March 4, 2026.

“Pursuant to Regulation 30(6) learn with Clause 3 of Para A of Half A of Schedule III of the Securities and Change Board of India Laws, 2015, it’s hereby knowledgeable that ICRA Restricted (ICRA) has upgraded the credit standing and revised the outlook assigned to the Lengthy Time period-Fund Primarily based – Time period Loans from ‘Secure’ to ‘Positive’ as per the letter issued to the Firm in the present day,” as per an trade submitting by the telco.

In a rationale be aware, ICRA mentioned the improve displays latest developments, together with the Authorities of India’s January revision of Vi’s adjusted gross income (AGR) dues and the settlement of the contingent legal responsibility adjustment mechanism settlement with VIL’s promoter, Vodafone Group PLC. The telco additionally efficiently raised funds via a follow-on public provide (FPO) in April 2024 and the issuance of NCDs via its subsidiary prior to the AGR relief. ICRA’s positive outlook displays its expectation of wholesome income and revenue development following well timed capex implementation and the potential for a tariff hike, the agency mentioned in its be aware.

However, the score stays constrained by the corporate’s constant subscriber churn, which introduced the subscriber base down to round 192 million as of December 2025 from 215 million as of December 2023, as capex remained muted prior to now. Additional, the general deferred cost obligations in direction of spectrum and AGR stay elevated, at ₹1,24,877 crore and ₹80,502 crore, respectively, as of December 2025.

“The elevated obligations, together with the weak profitability metrics and detrimental web value place, has translated into modest debt indicators,” mentioned ICRA.

The financial institution debt stays low at round ₹ 1,126 crore as of December 2025, with the vast majority of the debt being within the type of deferred spectrum and AGR liabilities. The reimbursement burden for presidency liabilities pertaining to spectrum due conversion and AGR relief has come down to round ₹7,000 crore for FY27, round ₹15,400 crore for FY28, and round ₹27,000 crore for the interval between FY29 and FY32. Vi’s capacity to tie up financial institution debt to roll out capex as per the plan, well timed assist from the GoI and promoters, and a capex funding tie-up stay the important thing credit score monitorables.

Printed on March 4, 2026