| Textual Information(1) |
Notes 1.The above unaudited consolidated financial results of Vodafone Idea Limited, its subsidiaries (the Group), joint venture and associates, as reviewed by the Audit Committee of the Board, were approved and taken on record by the Board of Directors at their meeting held on January 27, 2026. 2. In September 2025, the Company filed a writ petition before the Hon'ble Supreme Court seeking quashing of the additional AGR demands for the period up to FY 2017 raised by Department of Telecommunication (DoT) and for comprehensive reassessment/reconciliation of all AGR dues including interest and penalty upto said period. The Hon'ble Supreme Court, keeping in view the change in circumstances and the larger public interest, vide its orders dated October 27, 2025 and November 3, 2025, has stated that comprehensive reassessment/reconciliation of all AGR dues falls within the policy domain of the Government of India (GoI) and DoT could re-assess and reconcile all AGR dues including interest and penalty up to the said period. As at December 31, 2025, the Company is carrying AGR liability of Rs 80,502 Cr, which as per original agreement was payable in six equal instalments starting from March 31, 2026. Subsequently, on January 8, 2026, the Company has received communication from DoT that: -The AGR dues (Principal + Interest + Penalty and Interest on Penalty) of the Company (for the period from FY 2006-07 to FY 2018-19) as of December 31, 2025 shall be frozen and shall be payable as follows: (a) Maximum Rs. 124 Cr to be paid annually over next 6 years i.e. March 2026 to March 2031; (b) Rs. 100 Cr to be paid annually over next 4 years i.e. March 2032 to March 2035; (c) The remaining re-assessed AGR dues, without further interest, has to be paid in equal installments annually over 6 years, i.e. March 2036 to March 2041. - A committee is to be constituted by DoT to reassess the AGR dues, whose decision shall be final and the Company has given an undertaking to DoT that the outcome of such reassessment shall be final and binding upon the Company. The DoT, vide its communication of even date, has confirmed that the AGR dues frozen as on December 31, 2025 amount to Rs. 87,695 Cr, which is, however, subject to reassessment. The above being non-adjusting event in accordance with IND AS 10, no effect has been given in these consolidated financial results. 3. The Group has incurred a loss of Rs. 17,418 Cr for the nine months ended December 31, 2025 and net worth stands at negative Rs. 87,744 Cr at that date. - As at December 31, 2025, the Group’s outstanding debt from banks and others (including interest accrued but not due) is Rs. 4,424 Cr and instalments payable, as scheduled, by December 2026 is Rs 1,126 Cr and interest thereon. - As at December 31, 2025, Deferred payment obligation (including interest accrued but not due) of Rs. 124,877 Cr towards Spectrum and Rs. 80,502 Cr towards AGR (subject to note 2 above), and instalments payable, as scheduled, by December 2026 is Rs. 7,001 Cr. - As of date, the Group has met all its debt obligations payable to its lenders / banks and financial institutions along with applicable interest. The Company is in discussion with banks to raise additional funds as required. Based on recent developments with respect to AGR matter as mentioned in Note 2 above, the Group is confident of generating sufficient cash flow from operations to meet its obligations including lenders, spectrum and AGR dues payable over the next 12 months as and when they fall due. Accordingly, these consolidated financial results have been prepared on a going concern basis 4. As at December 31, 2025, assets include amounts recorded as recoverable from the promoters of erstwhile Vodafone India Limited (“VInL”) under the Implementation agreement (IA) executed on March 20, 2017 which was amended as on December 31, 2025. Both parties have agreed to settle such recoverable as follows: - An amount of Rs. 2,307 Cr (based on exchange rate as of the date of the Amendment Agreement), will be released by the Vodafone Group Promoters over the next 12 months, subject to and in accordance with the terms agreed in the Amendment Agreement. - A portion of the Settlement amount is secured through the earmarking of 328 Cr equity shares of the Company by certain Vodafone Group entities for a period of five years. Proceeds from sale of these shares as and when undertaken, at the instructions of a person authorised/ appointed by the Company, will accrue to the Company. As on the date of the Amendment Agreement, the fair market value of such earmarked shares on December 31, 2025 stands at Rs. 3,302 Cr (arrived basis closing market price of the Company as quoted on National Stock Exchange of India Limited, adjusted for transaction and other incidental cost). - Accordingly, difference between the carrying amount of Rs. 6,394 Cr and fair value of such recoverable assets basis above settlement mechanism is recognised as loss on remeasurement of Settlement assets. In addition, certain provisions were written back and these are disclosed as “Provisions written back net of loss on remeasurement of Settlement assets” of Rs. 1,228 Cr under “Exceptional Items”. 5. The Group operates only in one reportable segment i.e. Mobility and hence no separate disclosure is required for Segments. 6. The Government of India has consolidated 29 existing labour legislations into a united framework comprising four Labour Code viz Code on wages 2019, Code on Social Security 2020, Industrial Relation Code 2020, and Occupational Safety, Health and Working Condition Code 2020 (collectively referred to as the Labour Codes). These Codes have been made effective from November 21, 2025. The labour codes, amongst other things introduces changes, including a uniform definition of wages. The Company has assessed the financial implications of these changes which has resulted in increase in gratuity and Leave liability arising out of past service cost amounting to Rs. 159 Cr and same has been disclosed under “Exceptional items” as “Impact of Labour code”. The Group continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect, if any, on the basis of such developments as needed. 7. Effective current quarter, the Company has presented the consolidated financial results in Indian Rupees (INR) crores to adopt a more standard approach of effective communication. Previous period figures have also been accordingly presented in Indian Rupees (INR) crores. Previous period figures have been regrouped and rearranged wherever necessary. For and on behalf of the Board of Directors of VODAFONE IDEA LIMITED Ravinder Takkar Non-Executive Chairman Date: January 27, 2026 Place: Gurugram * Share of profit/(loss) of associates and joint ventures accounted for using equity method and Income tax relating to items that will not be reclassified to profit or loss are below one Cr. |