Telecom player Vodafone Idea on Tuesday, 12 May, announced that its board will meet later this week on 16 May to consider the fourth quarter results and mull a fundraising proposal.
The company’s board will discuss and consider the standalone and consolidated results for the quarter and the financial year ended 31 March 2026.
Furthermore, it would also evaluate proposals for raising funds via the issuance of equity shares and/or warrants on a preferential basis, subject to such approvals as may be required, including approval of the shareholders of the company.
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Vodafone Idea’s board is scheduled to meet on May 16th to consider their fourth quarter results and a proposal for fundraising.
Vodafone Idea’s board will evaluate proposals for raising funds through the issuance of equity shares and/or warrants on a preferential basis, subject to necessary approvals.
The company has seen improved investor confidence following relief on adjusted gross revenue (AGR) dues, which reduced their debt by ₹23,600 crore.
Vodafone Idea has clarified that it has not received any communication from Vodafone Group regarding a possible transfer of promoter shareholding to the company as treasury stock.
The revised CLAM arrangement involved Vodafone Group promoters agreeing to release nearly ₹2,307 crore over 12 months, subject to conditions, to improve predictability around future cash flows.
Analysts expect Vodafone Idea’s quarterly loss to narrow sharply on a year-on-year basis amid a marginal rise in net sales.
Kotak Institutional Equities said that revenue could grow 1.7% to ₹11,197.1 crore, while it could decline by 1.1% quarter-on-quarter (QoQ). The company’s average revenue per user (ARPU) could decline to ₹171 per share from ₹172 on a lower number of days in the quarter. Meanwhile, subscriber losses could also continue to weigh.
However, it pegs Q4 loss at ₹5,103.5 crore in Q4FY26 compared with ₹7,166.1 crore in the same period last year and ₹5,286 crore in the preceding quarter of FY26.
On the flip side, Ambit Capital sees a sequential increase in its ARPU to ₹173. In terms of profitability, it also sees a lower loss of ₹5,286 crore and a 3% increase in net sales to ₹11,289.3 crore.
Higher network cost should lead to 107 bps lower EBITDA margin, it said, as it pegs the figure at 41.4% for the quarter under review.
Vi looks to raise funds after AGR relief
Meanwhile, the company’s plan to raise funds comes following the recent relief on adjusted gross revenue (AGR) dues, which has improved investor confidence in the counter as it eases concerns on the company’s financials and becomes a non-issue in the near term.
The telecom department earlier this month finalised the revised AGR figure after a reassessment ordered by the Supreme Court last year. The government has reduced the dues of the telecom operator by ₹23,600 crore to ₹64,046 crore as of December-end, with a bulk of the instalments falling due from FY36 to FY41.
Moreover, the company recently welcomed Kumar Mangalam Birla as its non-executive chairman. Birla, who returns as non-executive chairman of the company after five years, will replace Ravinder Takkar.
These developments have driven Vodafone Idea shares higher by 30% in a month and 70% in a year.
(This is a developing story. Check back for updates.)
