Vodafone Idea to Fund Capex Via Internal Cash & Non-Bank Sources from September: CEO

(Vi) has announced a strategic shift in its funding approach for network expansion. From September 2025, the company will rely primarily on internal cash flows (cash EBITDA) and non-bank funding mechanisms, as the capital raised through its follow-on public offering (FPO) is expected to be fully utilized by then. * Capex Guidance: Vi aims to complete its H1 capex target of ₹5,000–6,000 crore by September. Post that, capex is expected to be sustained at ₹2,100–2,200 crore per quarter, funded entirely by cash EBITDA. * Non-Bank Financing: To avoid disrupting the ongoing capex cycle, Vi is exploring non-bank funding routes for additional capital requirements—not the entire envisioned ₹25,000 crore, but amounts sufficient to maintain momentum. * Bank Funding Dependent on AGR Clarity: Vi continues to engage with banks for potential loans, though clarity on Adjusted Gross Revenue (AGR) dues remains crucial. The first tranche amounts to nearly ₹16,400 crore, with a four-year moratorium ending in September. Why It Matters: * Vi is effectively navigating cash flow challenges post-FPO and ensuring continuity in capital-intensive infrastructure investments. * The pivot to internal accruals reflects growing operational discipline, while selective external sourcing underscores strategic flexibility. * Clarity on AGR liabilities will be a critical inflection point—potentially unlocking bank funding and easing balance sheet pressure. Source: The Economic Times No Recommendations