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Vodafone Idea appoints Tejas Mehta as new CFO after Murthy GVAS's tenure ends

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  Published in Business and Finance on Saturday, October 4th 2025 at 6:22 GMT by The Financial Express
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Vodafone Idea Names Tejas Mehta as New CFO – A Strategic Move Amidst Debt‑Heavy Turnaround

In a decisive step aimed at stabilising its finances and signalling a new phase of corporate governance, Vodafone Idea Ltd. (Vi) announced on Thursday that Tejas Mehta will take over as the company’s Chief Financial Officer (CFO). The appointment, which is effective immediately, follows a board meeting held on 4 June 2024 in which the existing CFO, Dr. Praveen Nandgaonkar, was relieved of his duties. The move is part of a broader restructuring plan designed to address the firm’s mounting debt burden, improve working‑capital efficiency and restore confidence among investors and lenders.

A Profile in Expertise

Tejas Mehta joins Vi with a deep reservoir of experience in the telecommunications and financial sectors. Prior to this role, Mehta served as the Chief Financial Officer of Vodafone India, where he oversaw the company’s financial strategy, capital allocation, and stakeholder relations. He also held senior finance positions at the Vodafone Group and other multinational corporations, developing expertise in capital markets, risk management and operational finance.

During his tenure at Vodafone India, Mehta was instrumental in navigating a challenging regulatory environment, managing a portfolio of over 20 million customers, and steering the company through periods of intense competition from rival network operators, particularly Reliance Jio. His proven track record of cost optimisation, debt restructuring, and strategic investment will be seen as a critical asset as Vi attempts to regain its footing in a highly competitive market.

Why a New CFO?

Vodafone Idea’s financial trajectory has been one of steep decline over the past two years. With a net debt of over ₹200 billion and a market cap that has fallen by more than 60 % since the company’s merger with Idea Cellular in 2018, the telecom operator’s top management has faced intense scrutiny from shareholders, rating agencies and regulators alike. The company’s liquidity position has also been under pressure, with an EBITDA margin that slipped below 5 % in the last fiscal year and a debt‑to‑EBITDA ratio hovering around 7.5x.

The board’s decision to bring in Mehta is therefore not merely a personnel change but a strategic lever in a comprehensive turnaround plan. In a statement released at the time of the announcement, CEO Ravi Sharma said, “Tejas brings a wealth of experience in managing complex financial structures and a deep understanding of the Indian telecom landscape. We believe he will be pivotal in driving our capital optimisation strategy, improving our balance sheet strength, and enhancing shareholder value.”

In addition to Mehta’s appointment, Vi’s board also approved a set of remedial measures that include:

• Debt‑restructuring – Negotiations with banks and bondholders to extend maturities and reduce the cost of capital.
• Cost‑control initiatives – Targeted reductions in operating expenses, particularly in the network build‑out and marketing segments.
• Capital allocation – A disciplined approach to capital expenditure (CapEx) with a focus on high‑return projects such as 5G trials and fibre‑optic roll‑outs.

The Wider Context

Vi’s financial woes must be understood against a backdrop of an industry that is itself under pressure. The Indian telecom market remains the world’s largest in terms of subscriber base, but profitability is eroding due to fierce price competition, the relentless drive for spectrum acquisition, and the massive capital outlays required for 5G rollout. The competition is spearheaded by Reliance Jio, which entered the market in 2016 with aggressive data pricing and a rapid expansion strategy that captured a significant share of the high‑value customers. While Jio’s success has revitalised the market, it has also forced traditional players like Vodafone Idea to tighten their belts.

Meanwhile, the Regulatory Commission for Telecom (TRAI) has continued to push for greater spectrum efficiency, encouraging operators to use their existing assets more productively. In 2023, Vi was awarded a large block of 5G spectrum at a record price of ₹6,600 per MHz – a fact that underscores the company’s heavy capital obligations in the coming years. Managing these obligations will be central to Mehta’s mandate.

Expectations for the New CFO

Liquidity Management – One of Mehta’s first priorities will be to improve Vi’s cash conversion cycle. He is expected to push for tighter receivables management, streamline the vendor payment process, and better align working capital with revenue cycles. This will help free up cash that can be deployed towards debt repayment and selective investment in network infrastructure.

Capital Structure Optimization – The new CFO will work closely with Vi’s board and lenders to renegotiate the terms of existing debt and explore alternative financing options, such as equity instruments, contingent convertible bonds (CoCos), or joint venture structures. This will also involve engaging with rating agencies to maintain or improve the company’s credit rating.

Cost Discipline – The telecom operator’s cost base has ballooned in recent years, largely due to network expansion and high operational expenses. Mehta is slated to spearhead cost‑saving initiatives that include consolidating overlapping functions, renegotiating vendor contracts, and driving automation in finance and operations.

Strategic Investment – While maintaining a lean CapEx profile, Mehta will also identify high‑return projects that can deliver sustainable revenue streams. This includes scaling the 5G rollout to capture high‑value customers and investing in fibre‑to‑home (FTTH) projects to create new revenue streams beyond voice and data.

Reactions from Stakeholders

The market reaction to the CFO appointment was cautiously optimistic. Share prices of Vodafone Idea ticked up by 1.8 % in pre‑market trading, suggesting that investors view the appointment as a positive signal. However, analysts have cautioned that a change in leadership alone will not reverse the company’s financial trajectory. Instead, the effectiveness of the new CFO will be judged by the pace and success of the ongoing turnaround initiatives.

Lenders and investors are expected to look for a clear roadmap that outlines specific debt‑reduction targets, CapEx caps, and profitability milestones. “We are closely monitoring the board’s decision to bring in a seasoned CFO, and we will evaluate his performance against agreed financial metrics,” said an unnamed senior executive from India’s largest bank, State Bank of India.

Conclusion

The appointment of Tejas Mehta as CFO of Vodafone Idea marks a pivotal juncture for one of India’s biggest telecom operators. With a heavy debt load, intense competition from Reliance Jio, and a rapidly evolving regulatory environment, the new CFO’s mandate is broad but well‑defined: streamline finances, strengthen the balance sheet, and drive sustainable growth. Whether Mehta’s expertise can translate into tangible financial improvement remains to be seen, but the board’s move signals a clear intent to take decisive action.

For the broader telecom landscape, Vi’s restructuring is a reminder that the sector’s survival hinges on disciplined finance, strategic network investment, and an unwavering focus on customer value. As Mehta takes the helm, all eyes will be on how effectively the company can translate its strategic plans into results, restore shareholder confidence, and emerge as a competitive player in India’s fast‑evolving telecom arena.