SC judgement on Vi AGR 'turning point', Co to focus on sustainable growth: KM Birla

New Delhi, Jan 28 (PTI) The Supreme Court judgement on Adjusted Gross Revenue (AGR) liabilities of telecom operator Vodafone Idea has been a 'decisive turning point', enabling the company to look beyond survival, with focus on sustainable growth, Aditya Birla Group Chairman KM Birla said on Wednesday.

In an annual note, Birla said the Vodafone Idea experience underlines his belief that "Tough Times Don't Last. Tough Companies Do." "With long-standing uncertainty removed through the clarity of the Honourable Supreme Court's judgment and the government's decisive intervention, the operating environment has fundamentally changed. For the first time in years, the fog has cleared, allowing the business to look beyond survival and focus on sustainable growth," Birla said.

Based on the apex court order, the government has frozen the AGR liability of the company at Rs 87,695 crore, which will also be reassessed.

"Our joint venture, Vodafone Idea, has stood in the eye of this storm, navigating one of the most protracted periods of uncertainty in the industry's history," Birla said.

He said the company carried through its most challenging years with the commitment of employees, loyalty of customers and the belief of business partners and shareholders.

Birla said the government's determination to revitalise the telecom sector was equally vital, coupled with the promoters' firm conviction in the long-term potential of the Indian telecom sector.

"A dogged focus on daily operations, service and network expansion will now serve as the foundation for revival. A healthy, competitive telecom industry is essential to India's digital future. India deserves 3 private telecom players. India deserves a successful Vodafone Idea. And this is, once again, an idea whose time has come," Birla said.

On several occasions, Birla had given up on continuing the operations of debt-ridden and cash-strapped Vodafone Idea in the absence of relief.

The company's total debt stood at Rs 2.09 lakh crore, comprising Rs 4,424 crore of outstanding bank debt, Rs 1.24 lakh crore of deferred payment obligations for spectrum, and Rs 80,502 crore of adjusted gross revenue dues.

The Group has incurred a loss of Rs 17,418 crore during the nine months ended December 31, 2025, and its net worth stood at negative Rs 87,744 crore.

Debt-ridden telecom operator Vodafone Idea (VIL) on Tuesday reported a narrowing of its consolidated net loss to Rs 5,286 crore in the third quarter ended December 2025, mainly due to customer service upgrades.

The company's subscriber base declined by 3.4 per cent year-on-year to 19.29 crore from 19.98 crore. However, Vi saw an increase in postpaid and 4G/5G subscribers.

The company's postpaid subscriber base increased by 14.2 per cent to 2.88 crore from 2.52 crore a year ago. The 4G and 5G subscriber base increased to 12.85 crore from 12.6 crore on a YoY basis.

Vi said its user revenue or ARPU (average revenue per user) rose 7.3 per cent year-on-year to Rs 186 in the reported quarter from Rs 173 in the quarter ended December 2024, mainly due to customer upgrades.

Consolidated revenue from operations remained almost flat at Rs 11,323 crore during the latest third quarter compared to Rs 11,117 crore a year ago. PTI PRS DRR DRR