Airtel's proposal to convert its statutory dues into equity is facing a stiff challenge from the Department of Telecom (DoT), The Times of India reported on July 1. According to government sources cited by ToI, the request is unlikely to be approved, primarily due to the company's robust financial standing.
This development comes after Airtel surprised many industry observers by seeking a similar bailout to what financially deeply troubled Vodafone Idea received.
Vodafone Idea's business has been struggling in a big way, with its debts exceeding Rs 2 lakh crore and quarterly losses mounting.
In stark contrast, Airtel reported a remarkable turnaround, with its consolidated net profit soaring to Rs 33,556 crore for the financial year ending March 31, 2025, compared to Rs 7,467 crore the previous year.
Additionally, its revenue from operations increased by 15%, reaching Rs 1.7 lakh crore.
According to latest reports, the DoT has conducted a preliminary review of Airtel's request and has concluded that there is no necessity to discuss the proposal further.
A source close to the situation told ToI, "There seems to be no need to discuss this proposal. The company is sufficiently healthy and does not appear to be in need of such a financial bailout."
The govt's stance highlighted the contrast between Airtel’s financial health and the dire circumstances faced by Vodafone Idea.
Airtel's decision to seek an equity swap was primarily driven by its desire to conserve cash amid outstanding dues of over Rs 70,000 crore, which includes Rs 40,000 crore in adjusted gross revenue (AGR) dues.
This development comes after Airtel surprised many industry observers by seeking a similar bailout to what financially deeply troubled Vodafone Idea received.
Vodafone Idea's business has been struggling in a big way, with its debts exceeding Rs 2 lakh crore and quarterly losses mounting.
In stark contrast, Airtel reported a remarkable turnaround, with its consolidated net profit soaring to Rs 33,556 crore for the financial year ending March 31, 2025, compared to Rs 7,467 crore the previous year.
Additionally, its revenue from operations increased by 15%, reaching Rs 1.7 lakh crore.
According to latest reports, the DoT has conducted a preliminary review of Airtel's request and has concluded that there is no necessity to discuss the proposal further.
A source close to the situation told ToI, "There seems to be no need to discuss this proposal. The company is sufficiently healthy and does not appear to be in need of such a financial bailout."
The govt's stance highlighted the contrast between Airtel’s financial health and the dire circumstances faced by Vodafone Idea.
Airtel's decision to seek an equity swap was primarily driven by its desire to conserve cash amid outstanding dues of over Rs 70,000 crore, which includes Rs 40,000 crore in adjusted gross revenue (AGR) dues.
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