Vi’s Future: Capex, 5g, And Agr Clarity

Moondra told analysts that Vi is seeing constant enhancement in subscriber metrics. Its customer churn has actually come down by 90% to 0.5 million in Q1 from 9 million each over the coming before 2 quarters.

Subscriber Metrics Improvement

“In the last quarter, we have actually indicated that we are considering about Rs 5,000-6,000 crore of capex in H1. That target will certainly be fulfilled by September,” claimed Moondra at the firm’s Q1 FY25 earnings call on Monday, which notes his last quarter before his tenure runs out on August 19.

“What the banks are presently looking for is some clarity on the AGR (adjusted gross earnings) front. Our demand to the federal government has actually been that allow us fix this earlier than prior to the due date of March, so that banks get clarity and we can continue with bank financing.

Capex and Funding Strategy

He confirmed that investing will increasingly rely on interior accruals once the FPO-linked capex is released. “Yes, there are various other ands also and minuses, yet directionally, yes. Beyond September, we will only invest what we are making as money EBITDA, so around Rs 21-22 billion (Rs 2100-2200 crore) per quarter,” he claimed.

VI’s mobile ARPU boosted sequentially from Rs 164 to Rs 165. Vi’s supply jumped 5.04% to shut at Rs 6.46 on BSE Monday.

He noted that while 5G itself was not the single variable behind churn, its rollout is enhancing customer experience: “As we present 5G it is likewise to produce even more capacity, and particularly in congested locations. While it brings in the 5G experience, it additionally improves experience on 4G since that gets decongested as web traffic transfers to 5G.”

5G Impact on Customer Experience

The four-year halt granted to Vi on AGR payments in 2021 ends in September this year and the telco is anticipated to start making its yearly settlements due in March 2026. The initial tranche is projected to be almost Rs 16,400 crore. The business just produces Rs 2100 cash EBITDA per quarter which does not be adequate to make such repayment.

Beyond September, we will only spend what we are earning as cash EBITDA, so around Rs 21-22 billion (Rs 2100-2200 crore) per quarter,” he stated.

Vi’s capex had continuously expanded in FY25 and came to a head in the January-March 2025 period at Rs 4,230 crore as it increased network investing after fundraising with FPO and marketer groups. Nevertheless, by June-end capex strength regulated to Rs 2,440 crore while funds are anticipated to just last till September at this speed.

Reliance on Cash Flows

Vodafone Idea Ltd (Vi) will need to depend on its very own cash flows to fund network development beginning September 2025, as the resources increased through its follow-on public offering (FPO) will certainly be completely deployed already, and clearness on new financial institution funding stays evasive pending relief on the adjusted gross earnings (AGR) fees issue.

VI’s mobile ARPU enhanced sequentially from Rs 164 to Rs 165. Vi’s stock leapt 5.04% to shut at Rs 6.46 on BSE Monday.

The first tranche is predicted to be nearly Rs 16,400 crore. The firm just creates Rs 2100 cash money EBITDA per quarter which does not be enough to make such payment.

“Offered the truth that we are keen on keeping a continuity of our capex, which has actually been taking place because last year, we are considering non-banking sources of funding likewise. Not the full amount of Rs 25,000 crore that we have actually discussed, yet a minimal amount so that we can proceed with the capex cycle,” Moondra included.

He explained that the benefits of brand-new financial investments are still playing out. “While the 4G protection was largely done, I would state in the previous quarter, the 5G rollout started occurring from March 25. A few cities were rolled down in Q1 yet a huge part of the new cities have actually been rolled out in June and July onwards, so that influence is still to type of mirror in the total enhancement in customer metrics,” he clarified.