Can Vodafone Idea survive even if SC lets it stagger AGR dues?

NEW DELHI: Vodafone Idea has the weakest balance sheet among the top telecom players. The telecom major, which reported a Rs 25,460 crore loss for June quarter, is looking to restructure and raise money.

But it is losing subscribers fast and has the Supreme Court verdict on adjusted gross revenue (AGR) looming over its head. Analysts said the company needs to increase average revenue per user (Arpu) to Rs 150-175 in order to be able to stay in business.

The telco says the industry can easily absorb tariff hikes, but analysts have doubts. The telecom firm reported a drop in Arpu during a lockdown-hit quarter when peers saw a sharp rise. Its low investments in the 4G space could also pose a problem to increasing Arpu, said analysts, who have advised retail investors to steer clear of the stock.