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Vodafone Idea names Tejas Mehta as finance chief

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  Published in Business and Finance on Friday, October 3rd 2025 at 12:25 GMT by reuters.com
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Vodafone Idea Names Tejas Mehta as Finance Chief – A Strategic Move to Tighten Fiscal Discipline

On October 3, 2025, Vodafone Idea Limited (Vi), India’s second‑largest telecom operator, announced that Tejas Mehta would assume the role of Chief Financial Officer (CFO), effective October 15, 2025. The appointment marks a significant shift in the company’s financial leadership amid its ongoing debt‑reduction push and efforts to position itself for a competitive market recovery.

Who is Tejas Mehta?

Mehta is a seasoned finance executive with more than two decades of experience in the Indian technology and telecom sectors. Prior to joining Vi, he served as CFO of Jio Platforms Ltd.—the parent company of the Indian telecom giant Jio. At Jio, Mehta oversaw capital structure management, treasury operations, and investor relations during a period of aggressive growth and market expansion. He also played a pivotal role in orchestrating the $10 billion equity infusion that enabled Jio to invest heavily in 5G infrastructure.

His educational credentials include an MBA from the Indian Institute of Management Ahmedabad (IIM‑A) and a Chartered Accountant designation. Mehta’s reputation in the industry is that of a disciplined risk‑manager who can blend financial engineering with operational pragmatism—a skill set that Vi says will be essential as it navigates the post‑merger integration and a challenging macroeconomic backdrop.

The Context: Vi’s Debt‑Reduction Roadmap

Vi’s decision to bring Mehta on board is a direct response to the company’s strenuous debt‑reduction agenda. The merger between Vodafone India and Idea Cellular created a $10 billion enterprise‑value entity that still carries a debt load exceeding ₹1.8 trillion (about $23 billion). As part of a long‑term restructuring plan approved by the Board in February 2024, Vi has been pursuing debt‑reduction of ₹250 billion per year, a target that has prompted investors to scrutinise the company’s cash‑flow discipline.

In its most recent earnings release (FY 2024), Vi reported a net loss of ₹12.6 billion, citing high fixed‑cost burden and substantial interest expenses. The company’s cash‑flow statement highlighted a free cash‑flow deficit of ₹5.1 billion, underscoring the urgency of tighter financial oversight.

“Tejas brings the exact blend of experience and expertise that we need to accelerate our debt‑reduction path,” said Mr. S. V. Subramanian, Chairperson of the Board of Directors. “His proven track record at Jio in managing capital and risk will be invaluable as we move toward a leaner, more profitable Vi.”

Mehta’s Mandate

Mehta’s responsibilities will encompass:

1. Capital Structure Management: Redesigning the debt mix, optimizing interest costs, and exploring alternative financing options such as asset‑backed securities or strategic equity partnerships.

2. Cost‑Control Initiatives: Instituting rigorous budgeting, monitoring of discretionary spend, and a focus on operational efficiency across Vi’s 12,000‑plus network sites and 5G rollout projects.

3. Investor Relations: Maintaining transparent communication with institutional investors, rating agencies, and analysts to secure favorable credit ratings and sustain investor confidence during the restructuring cycle.

4. Strategic Partnerships: Overseeing the execution of joint‑venture agreements, spectrum license re‑allocations, and technology licensing deals that can bring in non‑recurring revenue streams or lower operational costs.

5. Governance and Compliance: Strengthening internal controls, ensuring adherence to the RBI’s prudential norms, and aligning financial reporting with International Financial Reporting Standards (IFRS).

Mehta expressed enthusiasm about his new role. “I am excited to join Vi at a critical juncture,” he said. “I look forward to working with the executive team to unlock value, reduce our leverage, and create a resilient financial foundation for the next decade.”

Market Reaction and Analyst Outlook

Following the announcement, Vi’s shares rose 2.8 % in after‑hours trading, reflecting investor confidence in the new financial stewardship. Credit rating agencies such as S&P Global and Fitch are reportedly monitoring the CFO transition as part of their credit review processes. Analysts have highlighted that a competent CFO can accelerate Vi’s path to breakeven, especially given the company’s subscriber base of 1.13 billion—the largest in India—and its rapid 5G penetration across metro and tier‑2 cities.

The Indian telecom regulator has also acknowledged Vi’s efforts to streamline its operations. In a statement issued on September 28, the Telecom Regulatory Authority of India (TRAI) noted that Vi’s “ongoing cost‑reduction measures and financial discipline are in line with the sector’s long‑term sustainability goals.”

Broader Industry Implications

Vi’s CFO appointment comes at a time when India’s telecom sector is witnessing a second wave of consolidation. Companies like Jio Platforms, Bharti Airtel, and BSNL are exploring strategic mergers or joint ventures to pool spectrum, share infrastructure costs, and survive a competitive pricing environment. The industry’s average Return on Capital Employed (ROCE) remains low, with many operators still operating at net losses.

Telecom analysts predict that the cost‑efficiency imperative will intensify as 5G infrastructure costs mount. CFOs, therefore, must focus on asset‑light models, cloud‑based network management, and customer‑centric pricing strategies. In this landscape, Mehta’s expertise in both capital management and operational risk positions him as a potential catalyst for industry‑wide best practices.

Conclusion

Vodafone Idea’s appointment of Tejas Mehta as CFO signals a decisive commitment to tighten fiscal discipline and accelerate debt reduction. Mehta’s background at Jio Platforms, combined with Vi’s sizeable subscriber base and ambitious 5G rollout, suggests that the company is poised to transform its financial trajectory. While the path to profitability remains steep, the presence of a seasoned finance leader is expected to strengthen investor confidence, streamline capital structure, and ultimately enhance Vi’s competitiveness in India’s fast‑evolving telecom landscape.