IDEA

funding hits roadblock as moratorium deadline approaches

’s funding plan has hit a roadblock, with banks reluctant to release the previously guided ₹25,000 crore until there is clarity on adjusted gross revenue (AGR) relief, the company has begun scouting non‑bank sources to bridge near‑term capex needs. The timing is critical. The 4‑year moratorium on regulatory payouts ends in September, and Vi faces a heavy back‑loaded liability stack: roughly ₹16,400 crore of AGR instalments due by March 2026 and about ₹2,600 crore of deferred spectrum payments by June—on top of a total government‑dues burden estimated around ₹2 trillion, stretching to FY32/FY44 The Supreme Court’s rejection of Vi’s plea to waive interest and penalties on pending AGR—about ₹45,000 crore—removes a potential relief valve and heightens solvency risk unless a negotiated pathway emerges. Vi wants to stick by the capex cycle—earlier guided at ₹50,000–55,000 crore over three years—by front‑loading ₹5,000–6,000 crore in H1 FY26 to expand 4G and seed 5G. 5G has launched in 22 cities across 13 circles, with plans to reach additional key markets in all 17 priority circles by September; encouragingly, 60–70% of 5G‑device users in launch markets are active on the network. Churn moderated in the June quarter, reflecting improved network focus and retention. The policy dimension remains the swing factor. Vi is urging the government to resolve the AGR schedule before March 2026 so banks can lend with visibility, noting past precedents of targeted relief—spectrum instalment deferments, reforms, and equity conversions—arriving when system stability required it. A delayed Vi capex cycle could reinforce a two‑speed market where peers consolidate 5G leadership and enterprise share, while Vi prioritizes selective densification and high‑return pockets.