India, May 20 -- Credit ratings agency ICRA has revised its outlook for the Indian telecom sector from negative to stable, citing improved financial discipline across telecom operators. A key factor behind this upgrade is the timely payment of dues by telecom companies, particularly Vodafone Idea (Vi), which has made notable progress in 2024.

Vi's recent efforts, raising capital, implementing tariff hikes, and boosting revenues, have collectively improved its cash flow and eased its financial burden in the short term. Furthermore, the company has been allowed to convert a portion of its government debt into equity, offering further relief.

In contrast, Reliance Jio and Bharti Airtel, which already have stronger balance sheets than Vi, h...