Vodafone Idea Plans ₹45,000 Crore Network Capex Through FY29, Targets Growth Across Key Circles
Vodafone Idea Limited (Vi) has outlined a major network investment plan of around ₹45,000 crore through FY29, with management focusing on rebuilding network strength, improving coverage in key circles, expanding 5G, and driving subscriber and revenue growth.
The company disclosed the strategy in its September 2026 investor presentation.
For investors, the key takeaway is that Vi is entering a critical phase of network investment aimed at improving its competitive position while simultaneously targeting higher ARPU, subscriber additions, and cash generation.
₹45,000 Crore Capex Planned Through FY29
Vodafone Idea has earmarked approximately ₹45,000 crore of capex towards network rollout through FY29.
The investment will primarily support the company’s 17-5-5 network strategy, which focuses on its most important revenue-generating circles.
According to the company, its 17 key circles account for around 99% of Vi’s revenue and more than 92% of industry revenue.
The network investment is intended to:
- Regain coverage parity in 17 key circles
- Improve network competitiveness in five additional circles
- Achieve 100% 2G and 4G coverage on national highways
- Strengthen coverage on key state highways
- Improve connectivity at airports and tourist locations
- Provide a seamless 5G experience across urban markets
The company believes concentrating investment in these markets can help generate better returns from its network spending.
Management’s 1-2-3 Growth Strategy
Vi has outlined a 1-2-3 strategy for its next phase of growth.
The three key objectives are:
1. Sustained subscriber addition
The company wants to return to consistent subscriber growth by improving network quality, coverage and customer experience.
2. Double-digit revenue growth
Vi plans to use ARPU growth, higher 4G/5G adoption and increased customer engagement to drive revenue growth.
3. Thrice cash EBITDA in three years
Management has set an ambitious target of increasing cash EBITDA by three times over a three-year period.
The strategy combines network investment with ARPU expansion, enterprise growth and service differentiation.
4G and 5G Subscriber Base Continues to Improve
Vi’s presentation shows a gradual improvement in its higher-value subscriber mix.
The company’s 4G/5G subscriber base increased to 130.1 million in Q1 FY27, compared with 126.7 million in Q1 FY26.
At the same time, total subscribers stood at 193.1 million at the end of Q1 FY27.
The company sees significant opportunity to migrate more customers towards 4G and 5G services, which can support higher ARPU and data consumption.
ARPU Growth Is Another Key Lever
Vi is also targeting higher customer ARPU as its subscriber mix improves.
Customer ARPU increased to ₹195 in Q1 FY27, compared with ₹177 in Q1 FY26, according to the investor presentation.
Management expects ARPU to benefit from:
- Increasing share of 4G/5G subscribers
- Higher data consumption
- Upselling of unlimited data plans
- Organic ARPU growth
- Impact of tariff increases
The company is therefore relying on both network investment and monetisation of its existing subscriber base.
Data Usage Shows Strong Growth
Data consumption has also increased significantly.
Vi reported data usage of 88.4 petabytes per day in Q1 FY27, compared with 69.1 petabytes per day in Q1 FY26.
This represents an increase of around 28%.
The trend highlights the growing importance of network capacity as customers consume more data through smartphones, video, digital services and other applications.
Broadband Sites Expanded
Vi’s broadband sites increased to 205,000 in Q1 FY27, compared with 189,000 in Q1 FY26.
The company is continuing to expand its network footprint as part of its broader effort to improve coverage and service quality.
The planned ₹45,000 crore investment through FY29 is expected to accelerate this network rollout.
Financial and Cash EBITDA Improvement
The investor presentation also points to improvement in key financial parameters.
Vi reported Q1 FY27 revenue of ₹11,689 crore, compared with ₹11,023 crore in Q1 FY26.
EBITDA increased to ₹5,034 crore from ₹4,612 crore, while cash EBITDA before Ind AS 116 increased to ₹2,475 crore from ₹2,181 crore.
The company is looking to build on this improvement through subscriber additions, higher ARPU and increased network utilisation.
Enterprise Business Remains Another Growth Opportunity
Alongside consumer telecom, Vi is targeting growth in its enterprise business.
Management highlighted opportunities across:
- Private networks
- Industry 4.0
- IoT
- Cloud services
- Cybersecurity
- Managed Wi-Fi
- SD-WAN
- AI-enabled services
- CCaaS and CPaaS
- SaaS offerings
- Industry-specific solutions
The company plans to strengthen its enterprise connectivity business while expanding into higher-value digital services.
Vi Also Wants to Improve Customer Experience
Vodafone Idea is using AI-led initiatives to improve customer service and reduce assisted interactions.
The company said its i@50 initiative has already delivered a 42% reduction in assisted customer complaints.
It is also working on initiatives such as:
- Zero Interaction Complaints
- Generative AI-powered customer service
- Voice biometrics
- Self-healing network technology
- AI-enabled contact centre capabilities
These initiatives are aimed at reducing service-related friction and improving customer retention.
What the ₹45,000 Crore Capex Means for Investors
The planned capex is potentially one of the most important elements of Vi’s current turnaround strategy.
The company has a large subscriber base and substantial spectrum and network assets, but its ability to compete effectively depends heavily on network quality and 4G/5G availability.
The ₹45,000 crore investment through FY29 therefore represents an attempt to close the network gap in its most important markets and create a stronger platform for subscriber and ARPU growth.
However, the investment also creates an important execution challenge.
Vi will need to translate this spending into:
- Better network coverage
- Subscriber additions
- Higher 4G/5G penetration
- Higher ARPU
- Revenue growth
- Stronger cash EBITDA
- Improved competitive positioning
Investor Takeaway
Vodafone Idea’s September 2026 investor presentation signals a clear shift towards network-led growth and financial recovery.
The company’s ₹45,000 crore capex plan through FY29, 17-circle network strategy, improving 4G/5G subscriber base, and higher ARPU provide the key pillars of its growth plan.
Management is targeting double-digit revenue growth and three-times cash EBITDA in three years, making execution of the network rollout particularly important for investors.
The key numbers to track going forward will be capex deployment, 4G/5G subscriber additions, ARPU, network coverage, data consumption, revenue growth, and cash EBITDA.
For investors, the opportunity is significant, but so is the execution risk. The success of the strategy will ultimately depend on whether the planned network investment translates into sustainable subscriber growth and stronger cash generation.
Disclaimer: This article is based on information disclosed by Vodafone Idea Limited in its September 2026 investor presentation. The management targets and forward-looking statements discussed above are subject to business, competitive, regulatory, financial, and execution risks and should not be treated as guarantees of future performance. This article is for informational purposes only and is not investment advice.