Vodafone Warns of Shutdown Beyond FY26 Without Financial Support

Cash-strapped Vodafone Idea Ltd (Vi) approached the Supreme Court seeking relief on its massive Adjusted Gross Revenue (AGR) dues. The telecom operator warned that it may not be able to sustain operations beyond FY 2025–26 without adequate financial support.

Telecom companies in India are mandated to share a percentage of their revenue with the government.

As per a petition filed on May 13, the telecom operator said that despite receiving financial support from the government two months ago, the company is once again facing an existential crisis. Moreover, banks have also refused to lend to the beleaguered telecom company citing concerns over Vi’s outstanding liabilities, including the Rs 18,000 crore AGR instalment due in March 2026.

“It is humbly submitted that without bank funding, the Petitioner company (Vodafone Idea) will not be able to operate beyond FY 2025–26, as it does not have the ability to pay AGR instalment of Rs 18,000 crore as per DoT demands,” the Vi petition stated.

Notably, Vodafone Idea owes close to ₹58,000 crore in total AGR-related liabilities, but has repeatedly sought relief due to its inability to raise funds or attract strategic investors.