Vodafone Idea’s growth path hinges on closing its pending fundraise, executing a focused 4G/5G capex plan in 17 priority circles, and sustaining ARPU gains from premium and postpaid users. While losses and high debt persist, network upgrades, enterprise digital services and India’s data growth offer a narrow but real turnaround window.
Growth levers after survival mode
After equity infusions and government becoming the largest shareholder, Vi is pivoting from survival to selective growth, targeting Rs 50,000–55,000 crore of network investments over three years, largely in 4G densification and 5G across 17 priority circles. Management has already lifted 4G coverage beyond 84% of the population and completed 5G rollout in these circles, feeding early traffic and perception gains.
Key highlights to watch
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ARPU trajectory: ARPU has risen to about Rs 180 with a four‑year growth streak, driven by upgrades to higher-value “Hero Unlimited” and premium postpaid plans; further tariff hikes and customer up-trading remain central to the thesis.
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Capex & funding: Vi is seeking up to Rs 20,000–25,000 crore via bank debt and non-bank funding, on top of earlier equity raises, to lift 4G coverage from 84.4% to 90% and deepen 5G in 29 cities.
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Network & brand rebuild: Focused investments in 17 circles, AI-led network optimisation, and partnerships in content and digital ecosystems aim to improve experience and reposition Vi as a credible third player.
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Enterprise & new services: Management is pushing IoT, cloud and cybersecurity solutions to diversify revenue beyond pure mobility and monetise 5G for enterprises.
Risks: Heavy AGR dues, a leveraged balance sheet and intense price competition from Jio and Airtel mean execution slippage or delayed funding could quickly derail the fragile recovery.
Sources: ScanX investor roadmap note; Moneycontrol and Economic Times telecom coverage; Vodafone Idea Press Release