Kumar Mangalam Birla has once again taken charge of debt-ridden telecom company Vodafone Idea. The company has appointed him as non-executive chairman, with effect from May 5, 2026. According to the company’s regulatory filing, he has replaced Ravinder Takkar, PTI reported. Takkar has resigned as Chairman, but will now remain involved as Non-Executive Vice Chairman and assist in the company’s transition.
Big challenge for the company
Vodafone Idea has been struggling with financial pressure for a long time. The company was burdened with huge dues following the Supreme Court’s AGR (adjusted gross revenue) judgment in 2019, with liabilities of around ₹53,000 crore further weakening its financial position. Competition in the telecom market also remained a big challenge for the company. Cheap data and free calling offers by Mukesh Ambani’s Reliance Jio had a deep impact on Vodafone Idea’s business.
However, some relief has definitely been received from the government. AGR dues were revalued and reduced by about 27% to ₹64,046 crore, which was earlier ₹87,695 crore. Despite this, market analysts believe that this relief is less than expected. According to IIFL Capital, if there was exemption in interest and penalty, the relief could have been much higher.
The company will have to pay installments
Under the payment structure, the company will have to repay the AGR dues over 10 years. A minimum installment of ₹100 crore will have to be paid every year from FY2031-32 to FY2034-35 and ₹10,608 crore every year from FY2035-36 to FY2040-41. Apart from this, ₹124 crore will have to be paid separately every year from March 2026 to March 2031 for the dues related to FY2018 and FY2019. According to analysts, spectrum dues also remain a big challenge for the company. BofA Global Research estimates that Vi will have to pay around ₹49,000 crore over the next three years, with the liability rising rapidly.
Despite government relief, the financial condition of the company still remains weak. Vodafone Idea suffered a loss of ₹17,418 crore in the nine months to December 2025, while its net worth declined to minus ₹87,744 crore.
