Airtel’s proposal to convert its statutory dues into equity has reportedly not found support from the Department of Telecom. As per recent updates, government sources have indicated that the request is unlikely to move forward, largely due to Airtel’s strong financial position.
This development comes after Airtel made an unexpected move by seeking a relief mechanism similar to what Vodafone Idea received. Vodafone Idea has been under severe financial stress, with total debt crossing Rs 2 lakh crore and consistent quarterly losses. In contrast, Airtel has shown a major financial recovery, posting a consolidated net profit of Rs 33,556 crore for the financial year ending March 31, 2025. This marks a sharp rise from Rs 7,467 crore reported in the previous year. The company also recorded a 15 percent jump in revenue from operations, reaching Rs 1.7 lakh crore.
Despite having outstanding dues of over Rs 70,000 crore, including Rs 40,000 crore in adjusted gross revenue dues, Airtel remains financially stable. The telecom major was aiming to preserve cash by seeking a conversion of dues into equity, but the government appears unconvinced about the need for such support.
According to a source familiar with the matter, “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 firm stance underscores the significant gap between Airtel’s financial performance and Vodafone Idea’s crisis.
The Department of Telecom has reportedly completed an initial review of the proposal and sees no merit in pursuing further discussion.
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