The Group has liabilities in the form of borrowings, guarantees, trade and other payables as well as receivables in the form of loans, investments, cash, deposits, trade and other receivables. These arise as a part of the business activities and operations of the Group.
The business activities of the Group expose it to a variety of financial risks, namely market risks (that is, foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. Further, the Group uses certain derivative financial instruments to mitigate some of these risk exposures. The Group’s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Group are accountable to the Board of directors and the Audit and Risk Committee. The Group’s Finance Committee is primarily responsible for matters including framing of policies and execution procedures as well as laying down the risk framework mechanisms for the treasury function that will help the Group to achieve its strategic financial goals, balancing opportunity, prudence and initiative with risk control measures. This provides assurance to the Group that the Group’s financial risk-taking activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with Group policies and Group risk appetite. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Group’s policy that no trading in derivatives for speculative purposes shall be undertaken.
Details of key risks applicable to the Group are summarised below:
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk – currency rate risk, interest rate risk and other price risks, such as equity risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments.
The Group’s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates. The Group may use derivative financial instruments such as foreign exchange forward contracts, options, currency swaps and interest rate swaps and options to manage its exposures to foreign exchange fluctuations and interest rates.
Foreign exchange risk
Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group has foreign currency loans and foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. Further, the Group derives revenue and incurs costs in local currencies where it operates, but it also incurs costs in foreign currencies, mainly from buying equipment and services from manufacturers and technology service providers. That means adverse movements in exchange rates between the currencies in the Group’s OpCos and the US dollar could have a negative effect on Group’s liquidity and financial condition. In some markets, the Group faces instances of limited supply of foreign currency within the local monetary system. This may not only constrain the Group’s ability to fully repatriate at Group level the strong cash generation by those OpCos but may impact its ability to make timely foreign currency payments to our international suppliers or foreign currency external debts.
The Group may use risk management products such as foreign exchange options, currency swaps or forward contracts towards hedging risk resulting from changes and fluctuations in foreign currency exchange rate and in order to find structural solutions to mitigate interim foreign currency scarcity, where applicable. These foreign exchange contracts, carried at fair value, may have varying maturities depending upon the primary host contract requirement and risk management strategy of the Group. The Group manages its foreign currency risk by hedging its foreign currency exposure as per business needs and as approved by the Board in accordance with established risk management policy. The Group also continues to mitigate foreign exchange risk by minimising cash held in local currency in its various OpCos where possible through such risk management products by diversifying its foreign currency sourcing.
Foreign currency sensitivity
The following table demonstrates the sensitivity in the USD account balances to the functional currency of the respective entities as of 31 March 2026 and 31 March 2025, with all other variables held constant. The impact on the Group’s profit before tax is due to changes in the amount of monetary assets and liabilities due to the impact of changes in foreign exchange rates including foreign currency derivatives. The impact on the Group’s equity is due to the changes in the fair value of intra-group monetary items that form part of the net investment in foreign operations:
Change in currency exchange rate1 | Effect $m | Effect $m | |
|---|---|---|---|
1 ‘+’ represents appreciation and ‘-’ represents depreciation in USD against respective functional currencies of subsidiaries. 2 Represents losses/(gains) before tax arising from conversion/translation. | |||
For the year ended 31 March 2026 | |||
US dollars | +5% | 157 | 33 |
| -5% | (157) | (33) |
For the year ended 31 March 2025 | |||
US dollars | +5% | 151 | 27 |
–5% | (151) | (27) | |
For the years ended 31 March 2026 and 31 March 2025, with respect to currency sensitivity going forward, on a 12-month period and assuming that the movement occurs at the beginning of the period, a further 1% movement of the USD across all OpCos currencies would result in an estimated impact of $60m–$62m (31 March 2025: $46m–$48m) on revenues, $29m–$31m (31 March 2025: $22m–$24m) on EBITDA and $27m–$29m (31 March 2025: $25m–$27m) on foreign exchange (excluding derivatives). Our largest exposure is to the Nigerian naira, where a similar 1% USD movement would result in an estimated impact of $14m–$15m (31 March 2025: $14m–$15m) on foreign exchange (excluding derivatives).
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s interest bearing debt obligations with floating interest rates. Further, the Group engages in financing activities which are dependent on market rates and any changes in the interest rates environment may impact future rates of borrowing. The Group monitors the interest rate movement and manages the interest rate risk based on its risk management policies, which inter-alia may include entering into interest swaps contracts as considered appropriate and whenever necessary. The Group also maintains a portfolio mix of floating and fixed rate debt. As of 31 March 2026, after taking into account the effect of interest rate swaps, approximately 40% of the Group’s borrowings are at a fixed rate of interest (31 March 2025: 41%).
Interest rate sensitivity of borrowings
With all other variables held constant, the following table demonstrates the sensitivity to a reasonably possible change in interest rates on floating rate portion of loans and borrowings after considering the impact of interest rate swaps, wherever applicable, based on the outstanding amount of such borrowings as of 31 March 2026 and 31 March 2025.
Interest rate sensitivity | Increase ‘+’ / decrease ‘-’ | Effect $m |
|---|---|---|
1 Represents losses/(gains) arising from increase/decrease of interest rates. | ||
For the year ended 31 March 2026 | ||
| ||
US dollar – Borrowings | +100 | 6 |
| -100 | (6) |
| ||
Other currency – Borrowings | +100 | 8 |
| -100 | (8) |
For the year ended 31 March 2025 | ||
| ||
US dollar – Borrowings | +100 | 7 |
-100 | (7) | |
| ||
Other currency – Borrowings | +100 | 7 |
-100 | (7) | |
The assumed movement in basis points for interest rate sensitivity analysis is based on the movements in the interest rates historically and the prevailing market environment.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities, primarily from trade receivables but also from cash, other banks balances, balance held under mobile money trust, investments, derivative financial instruments and other financial receivables.
Trade receivables
Trade receivables are typically non-interest bearing unsecured and derived from sales made to a large number of independent customers. As the customer base is widely distributed both economically and geographically, there is no concentration of credit risk.
As independent credit ratings of customers is not available, the Group reviews the creditworthiness of its customers based on their statement of financial position, past experience, ageing and other factors.
Credit risk related to trade receivables is managed/mitigated by each business unit in accordance with the policies and procedures established by the Group, by setting appropriate payment terms and credit period, and by setting and monitoring internal limits on exposure to individual customers. The credit period provided by the Group to its customers generally ranges from 14-30 days.
The Group uses an age-based provision policy to measure the expected credit loss of trade receivables, which comprise a very large numbers of small balances. Refer to note 19 for details on the impairment of trade receivables.
Based on the industry practice and business environment in which the Group operates, management considers trade receivables are credit impaired if the payments are more than 270 days past due in the case of interconnect customers and 90 days past due in other cases since probability of default in such cases is considered to be 100% except amount due from related parties. In determining the amount of impairment, management considers the collateral against such receivables and any amount payable to such customers.
The following table details the ageing profile of gross trade receivables and allowance for impairment of trade receivables based on the Group’s provision policy:
Not past due $m | Past due | Total $m | |||||
|---|---|---|---|---|---|---|---|
Less than $m | 31 to 60 days $m | 61 to 90 days $m | 91 to 270 days $m | Above $m | |||
31 March 2026 | |||||||
Gross trade receivables | 13 | 36 | 2 | 11 | 8 | 315 | 385 |
Less: allowance for impairment of trade receivables | – | – | – | – | (5) | (187) | (192) |
Net trade receivables | 13 | 36 | 2 | 11 | 3 | 128 | 193 |
31 March 2025 | |||||||
Gross trade receivables | 11 | 43 | 16 | 9 | 13 | 287 | 379 |
Less: allowance for impairment of trade receivables | – | – | – | – | (8) | (168) | (176) |
Net trade receivables | 11 | 43 | 16 | 9 | 5 | 119 | 203 |
The gross carrying amount of the trade receivable is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Group determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amount due. Where the trade receivable has been written off, the Group continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in profit and loss.
Other financial instruments and cash deposits
The Group’s treasury, in accordance with the Board approved policy, maintains its cash and cash equivalents and deposits and enters into derivative financial instruments – with banks, financial and other institutions, having good reputation and past track record which are considered to carry a low credit risk. Similarly, counterparties of the Group’s other receivables carry either negligible or very low credit risk. Further, the Group reviews the creditworthiness of the counterparties (on the basis of its ratings, credit spreads and financial strength) of all the above assets on an ongoing basis, and if required, takes necessary mitigation measures.
Liquidity risk
Liquidity risk is the risk that the Group may not be able to meet its present and future obligations as and when due, without incurring unacceptable losses. The Group’s liquidity risk management objective is to at all times maintain adequate levels of liquidity to meet its requirements. The Group closely monitors its liquidity position, expected cash flows and deploys a robust cash management and planning exercise. It maintains adequate sources of financing including term loans, short-term loans and overdraft from both domestic and international banks at an optimised cost. It has also implemented all necessary steps to enjoy strong access to international capital markets if and when required. For details on borrowings and going concern, refer to notes 23 and 2.2 respectively.
The table below summarises the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments:
As of 31 March 2026 | |||||||
|---|---|---|---|---|---|---|---|
Carrying amount $m | On demand $m | Less than $m | 6 to $m | 1 to 2 years $m | > 2 years $m | Total $m | |
Interest bearing borrowings1 | 2,226 | 286 | 570 | 371 | 690 | 683 | 2,600 |
Lease liabilities2 | 4,224 | – | 476 | 362 | 742 | 6,280 | 7,860 |
Mobile money wallet balance | 1,310 | 1,310 | – | – | – | – | 1,310 |
Put option liability | 515 | – | 517 | – | – | – | 517 |
Trade payables | 612 | – | 612 | – | – | – | 612 |
Other financial liabilities | 649 | – | 427 | 40 | 49 | 231 | 747 |
Gross settled derivatives | |||||||
– Outflow | 2 | – | 80 | – | – | – | 80 |
– Inflow | – | – | (77) | – | – | – | (77) |
| 9,538 | 1,596 | 2,605 | 773 | 1,481 | 7,194 | 13,649 |
As of 31 March 2025 | |||||||
|---|---|---|---|---|---|---|---|
Carrying amount $m | On demand $m | Less than $m | 6 to $m | 1 to 2 years $m | > 2 years $m | Total $m | |
Interest bearing borrowings1 | 2,363 | 444 | 562 | 327 | 555 | 975 | 2,863 |
Lease liabilities2 | 3,661 | – | 357 | 313 | 601 | 5,448 | 6,719 |
Mobile money wallet balance | 928 | 928 | – | – | – | – | 928 |
Put option liability | 542 | – | 544 | – | – | – | 544 |
Trade payables | 485 | – | 485 | – | – | – | 485 |
Other financial liabilities | 557 | – | 320 | 32 | 43 | 271 | 666 |
Gross settled derivatives | |||||||
– Outflow | 4 | – | 202 | – | – | – | 202 |
– Inflow | – | – | (196) | – | – | – | (196) |
| 8,540 | 1,372 | 2,274 | 672 | 1,199 | 6,694 | 12,211 |
1 Includes contractual interest payment based on interest rate prevailing at the end of the reporting period after adjustment for the impact of interest rate swaps, over the tenor of the borrowings.
2 Maturity analysis is based on undiscounted lease payments.
Reconciliation of liabilities whose cash flow movements are disclosed as part of financing activities in the statement of cash flows
Statement of cash flow line items | 1 April 2025 $m | Cash $m | Non-cash movements | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Interest and other finance charges $m | Foreign exchange loss/(gain) $m | Dividend declared during the year $m | Additions $m | Fair value changes $m | Foreign currency translation reserve $m | Others $m | 31 March 2026 $m | ||||
1 Does not include overdraft. | |||||||||||
Borrowings1 | Proceeds/repayment of borrowings | 1,877 | (31) | – | (5) | – | – | – | 92 | – | 1,933 |
Lease liability | Repayment of lease liability | 3,661 | (643) | 467 | (185) | – | 627 | – | 297 | – | 4,224 |
Derivative liabilities net | Outflow on maturity of derivatives (net) | 9 | (61) | – | – | – | – | 55 | 2 | – | 6 |
Interest accrued but not due | Interest and other finance charges paid | 42 | (384) | 382 | – | – | – | – | (2) | – | 38 |
Dividend payable | Dividend paid to owners of equity and non controlling interests | 9 | (351) | – | – | 346 | – | – | (0) | – | 4 |
Deferred payment liability | Payment of deferred spectrum liability | 243 | (47) | 19 | 3 | – | 20 | – | 4 | – | 242 |
| Other financial liability | Purchase of shares under buy-back programme | 21 | (74) | – | – | – | 50 | – | 0 | 3 | – |
Statement of cash flow line items | 1 April 2024 $m | Cash $m | Non-cash movements | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Interest and other finance charges $m | Foreign exchange loss/(gain) $m | Dividend declared during the year $m | Additions $m | Fair value changes $m | Foreign currency translation reserve $m | Others $m | 31 March 2025 $m | ||||
1 Does not include overdraft. | |||||||||||
Borrowings1 | Proceeds/repayment of borrowings | 1,916 | (17) | – | – | – | – | (1) | (20) | (1) | 1,877 |
Lease liability | Repayment of lease liability | 2,089 | (547) | 319 | – | – | 1,857 | – | (57) | – | 3,661 |
Derivative liabilities net | Outflow on maturity of derivatives (net) | 167 | (194) | – | – | – | – | 54 | (18) | – | 9 |
Interest accrued but not due | Interest and other finance charges paid | 46 | (341) | 331 | – | – | – | – | 6 | – | 42 |
Dividend payable | Dividend paid to owners of equity and non controlling interests | 19 | (301) | – | – | 291 | – | – | (0) | – | 9 |
Deferred payment liability | Payment of deferred spectrum liability | 167 | (33) | 13 | – | – | 101 | – | (5) | – | 243 |
Other financial liability | Purchase of shares under buy-back programme | 41 | (120) | – | – | – | 100 | – | 0 | – | 21 |
Capital management
Capital includes equity attributable to the equity holders of the company. The primary objective of the Group’s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
No changes were made in the objectives, policies or processes during the year ended 31 March 2026 and 31 March 2025. The company also periodically runs its share buy-back programme reflecting the significant progress made in recent years to reduce leverage and strengthen the Company’s balance sheet. In light of the cash accretion at the holding company level, the current leverage and the consistent strong operating cash generation, the company is well positioned to undertake this share buy-back to enhance shareholder returns which is consistent with its existing capital allocation policy.
The Group monitors capital using a leverage ratio, which is net debt divided by Underlying EBITDA for the preceding 12 months. Net debt is calculated as total of borrowings and lease liabilities less cash and cash equivalents, term deposits with banks, current investments, deposits from customers in payment service bank operations, deposits given against borrowings, non-derivative financial instruments, processing costs related to borrowings and fair value hedge adjustments.
During the year ended 31 March 2025, the Group started using lease-adjusted leverage as an additional metric to monitor the capital, as this metric reduces the volatility in the leverage ratio associated with lease accounting under IFRS 16, improves comparability between periods and reflects the leverage based on the Group’s financial market debt position. The Group defines lease-adjusted leverage ratio as lease-adjusted net debt divided by lease-adjusted EBITDA for the preceding 12 months. Lease-adjusted net debt is defined as borrowings excluding lease liabilities less cash and cash equivalents, term deposits with banks, current investments, deposits from customers in payment service bank operations, deposits given against borrowings/non-derivative financial instruments, processing costs related to borrowings and fair value hedge adjustments. Lease-adjusted EBITDA is defined as operating profit/(loss) for the period before depreciation and amortisation less principal repayments due on right-of-use assets during the period and interest on lease liabilities. Also refer to alternative performance measures section.
For the year ended | ||
|---|---|---|
31 March 2026 $m | 31 March 2025 $m | |
Long term borrowings | 1,169 | 1,226 |
Short-term borrowings | 1,019 | 1,095 |
Lease liabilities | 4,224 | 3,661 |
Adjusted for: | ||
Cash and cash equivalents | (646) | (552) |
Term deposits with bank | (189) | (76) |
Current investments | (20) | – |
Deposit from customers in payment service bank operations | 25 | – |
Processing costs related to borrowings | 8 | 9 |
Net debt | 5,590 | 5,363 |
Less: Lease liabilities | (4,224) | (3,661) |
Lease-adjusted net debt | 1,366 | 1,702 |
| ||
Underlying EBITDA | 3,162 | 2,304 |
Less: Interest on lease liabilities | (467) | (319) |
Less: Repayment of lease liabilities | (195) | (219) |
Lease-adjusted EBITDA | 2,500 | 1,766 |
| ||
Leverage ratio | 1.8 | 2.3 |
Lease-adjusted leverage ratio | 0.5 | 1.0 |