Abhijit Kishore, CEO of Vodafone Concept (Vi), mentioned on the firm’s second-quarter (Q2FY26) post-earnings name on Tuesday that the telco is working very intently with the federal government and expects to provide you with the “greatest and long-term” resolution for its AGR dues. Relating to tariff hikes, the CEO mentioned the corporate “will type of wait and watch.” Examine what the corporate’s management mentioned in response to a couple of the analysts’ questions in the course of the earnings name within the story forward. Edited excerpts.
Q: Fundraising and Financial institution Engagements
Query: On the pending fundraise, I’ve two questions on this. Firstly, do you assume banks, now that you could have been, you realize, for the discussions with them over the past couple of weeks, do you assume they are going to be ready for an official reduction package deal from the Authorities, which I suppose might take a couple of months, as there aren’t any repayments due earlier than March? Or might this be unbiased of when the reduction package deal comes, now that we do have a Supreme Courtroom verdict?
And simply secondly, on this, what’s the standing of elevating credit score from non-banking sources that you’ve got beforehand spoken about? Is that one thing the place timelines might be superior?
Vi CEO: So, on the primary one, on the fundraising, I believe, as you rightly mentioned, we’re engaged with, you realize, the banks. And with the latest growth of the Honorable Supreme Courtroom, the order is fairly clear, and the Authorities being a 49 p.c fairness holder, and the Authorities making it additionally amply clear that, you realize, within the Indian context, three non-public gamers are required.
We’re wanting on the resolution which we imagine shall be greatest and for the long-term view from the Authorities. And our sense is that, for the reason that Supreme Courtroom order has come not too long ago, could be there would a bit of little bit of a dependency of that with the banks when they’re long-term funding. However we’re engaged with them, and we’re type of working fairly intently. And as and once we get to listen to, we’ll come again to you.
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Q: Vi on Elevating Credit score from Non-Banking Sources
Query: You had spoken about elevating credit score from non-banking sources, I suppose, non-public credit score. So I simply puzzled, can that be one thing which will be superior forward of, say, funding from banks?
Vi: Yeah, so, kind of, I believe we’re, as we mentioned, we’re speaking to many banks and the NBFCs each. And as and once we get nearer to the deal, we’ll come again to you. As we converse, we’re engaged with a number of companions at this cut-off date.
Q: Vi on AGR Conclusion Timeline
Query: And only one final query, I imply, associated to our [Vi’s] dialogue happening with DoT and the Authorities with respect to AGR dues, what kind of timeline are we anticipating when it comes to some conclusion right here? And in opposition to our dues, any thought course of you’ll be able to share? What’s our ask with the DoT and the Authorities?
Vi: We welcome the order from the Honorable Supreme Courtroom, and we’re fairly hopeful, the Authorities being a 49 p.c participant, to have a look at a long-term resolution, and we’re engaged with the DoT. I can’t actually give a timeline at this cut-off date on saying when it will get solved, however the Authorities has been extraordinarily useful, and we’re very hopeful that it will likely be resolved as quickly as potential.
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Q: Vi on ICR with BSNL and Different Home Distributors
Query: Now, there are a few media experiences that speak about you doing trials with different home distributors. A number of are named by the media. And secondly, a subject which is unrelated, one among your opponents has signed an ICR with BSNL. So, significantly in rural areas the place the intra-circle roaming might maybe assist present deep protection, what are your ideas on these two issues, and what are you able to focus on additional to what’s shared within the media on each these matters?
Vi CEO: To be trustworthy, I don’t wish to touch upon what the media has written so far as these are involved. A few of these, you realize, our dialogue, as soon as it rectifies, then it will likely be higher for us to return again and discuss to you. As we converse, there is no such thing as a dialog that we’re actually having with anyone on the ICR at a BAU degree.
And the primary query that you just mentioned on the opposite companions, I imply, everyone retains exploring that chance, which is what we’re additionally doing. However there is not any agency change of plan as we converse. , our companions from a community gear perspective are just about, you realize, what now we have disclosed. So there is not any change as we converse. However, yeah, from an analysis perspective on the technical entrance, there could be some analysis which we preserve doing. And even the Authorities would need an indigenous vendor, and therefore we’d be exploring that chance clearly.
Q: Vi on 5G SA versus NSA Structure
Query: On the expertise upgrades and the talk on 5G Standalone versus Non-Standalone. So, beforehand, whenever you had been speaking about, say, your just-in-time Capex technique, you’d spotlight that you’ll be able to benefit from developments in applied sciences even throughout the requirements, proper, whether or not it is 4G or 5G. And there, that might make it easier to economize in your deployments. So I would like your ideas, one, on this SA versus NSA debate on 5G, and secondly, is there a method so that you can roll out your 5G community incrementally?
Vi: On the 5G, as you realize, at Vodafone Concept Restricted, we have type of taken the route of NSA structure, and, you realize, that is what we’re rolling out proper now. And I believe that is type of doing the work for us. However sure, on the similar time, I also can say that, you realize, at any cut-off date that we really feel like shifting to the SA structure, the one which now we have proper now could be able to shifting to SA. After we really feel the necessity to transfer to the SA structure, we’d consider that and try this.
As a second query of claiming how and the place we’re going to go, I believe, once more, as I mentioned, the steadiness of the Capex for this yr, in addition to going ahead, goes to be a good mixture of attending to a 90 p.c, providing capability within the markets the place we really feel that there is congestion, and a good bit of 5G as nicely.
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Q: Vi on Tariff Hike
Query: Clearly, you are in contact with the DoT on the AGR information, however do you assume if any reduction comes by means of, the tariff hike, or any potential tariff hike that will get delayed? How do you take a look at it?
Vi: Yeah, I imply, from a tariff hike perspective, in the event you actually ask us, clearly, you realize, it is dependent upon, you realize, how the business takes form and the way the leaders take the place of the tariff hike. Is there a requirement for a tariff hike? The reply is sure. How briskly and the way quickly can that occur? , we’ll type of wait and watch. I cannot actually hyperlink it to the DoT and the AGR judgment on that.
Vi CEO’s Closing Feedback
“Our investments have led to improved protection and enhanced buyer expertise. 5G expertise has been expanded to 29 cities and 17 circles. Our knowledge utilization has elevated considerably by 7.8 p.c quarter-on-quarter, exhibiting elevated engagement with our subscribers. We proceed to maintain exploring new avenues for debt funding for execution of our long-term community growth plan. Thanks as soon as once more for becoming a member of us and in your continued confidence in our firm. We look ahead to updating you on our progress within the quarters forward,” Vi CEO concluded the Q2FY26 earnings name.
