New Delhi: Vodafone Idea, India's third largest telecom operator, has finally shown signs of recovery. On Saturday, the company posted a net profit of Rs 51,970 crore for the fourth quarter of fiscal year 2026, driven primarily by a one-time accounting gain from the government's adjusted gross revenue (AGR) relief. This marks a sharp turnaround from a loss of Rs 7,166 crore in the same quarter of the previous fiscal year.
Capital Infusion by Promoter
On the same day, promoter Aditya Birla Group committed a capital infusion of Rs 4,730 crore through one of its companies, Suryaja Investments Pte Ltd, based in Singapore. The company's board has approved the issuance of up to 430 crore warrants, each convertible into an equity share, representing a 3.82% stake, to Suryaja Investments at an issue price of Rs 11 per warrant, according to an exchange filing.
Warrant Exercise Details
The filing stated that 25% of the warrant exercise price shall be payable at the time of subscription of warrants, while the remaining 75% shall be payable by the warrant holder at the time of exercising the right to subscribe to equity shares.
Government Relief on AGR Dues
In December last year, the government had frozen Vodafone Idea's AGR dues at Rs 87,695 crore. Subsequently, in April this year, the government reduced the company's AGR dues by Rs 23,600 crore to Rs 64,046 crore after a recalculation. The bulk of these payments have been deferred by 10 years, with the dues to be paid from fiscal year 2036 to fiscal year 2041.
