Vodafone Idea Limited (VIL), India’s third-largest telecom operator, has cleared its outstanding dues to Indus Towers, paving the way for a potential dividend payout post FY25 results. The long-standing non-payment had previously strained Indus’s cash flow, but the Q4 FY25 clearance has significantly improved its financial position.
In Q4 FY25 alone, Indus’s free cash flow surged to ₹3,872.6 crore following Vi’s payment. Over the full fiscal year, Indus received a total of ₹5,100 crore from Vodafone Idea as part of the cleared backlog—up sharply from just ₹332.8 crore in free cash flow during the same quarter last year. With the backlog resolved, the company is now poised to consider rewarding shareholders.
Indus Towers is shifting into aggressive expansion mode, aiming to support customer rollouts across the country through both new tower deployments and additional tenancies on existing infrastructure. CEO Prachur Shah confirmed this direction, stating “Now that we’ve moved past the backlog issue, our strategy includes aggressively pursuing market share through both organic and inorganic routes, as demonstrated by our recent tower acquisition.”
While Indus had been in talks to acquire an additional 3,400 towers from Bharti Hexacom, those discussions are currently on hold. For the quarter ending March 31, 2025, Indus reported a net profit of ₹1,779 crore. Investors now await updates from the company to learn whether a dividend will be officially declared.
