The constructive outlook elements in expectations of wholesome income and revenue progress, supported by well timed capex rollout and potential tariff hikes.
Credit standing firm ICRA Restricted upgraded Vodafone Thought’s (Vi) score to BBB and revised the outlook for ‘Lengthy Time period-Fund Primarily based – Time period Loans’ from ‘Steady’ to ‘Constructive’ 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 Trade Board of India Rules, 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 ‘Steady’ to ‘Constructive’ as per the letter issued to the Firm in the present day,” as per an trade submitting by the telco.
In a rationale observe, 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 by a follow-on public provide (FPO) in April 2024 and the issuance of NCDs by its subsidiary previous to the AGR aid. ICRA’s constructive outlook displays its expectation of wholesome income and revenue progress following well timed capex implementation and the potential for a tariff hike, the agency mentioned in its observe.
However, the score stays constrained by the corporate’s constant subscriber churn, which introduced the subscriber base all the way 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 internet 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 nearly all of the debt being within the type of deferred spectrum and AGR liabilities. The compensation burden for presidency liabilities pertaining to spectrum due conversion and AGR aid has come all the way 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 skill to tie up financial institution debt to roll out capex as per the plan, well timed help from the GoI and promoters, and a capex funding tie-up stay the important thing credit score monitorables.
Revealed on March 4, 2026
