Capital and financial risk management (Tables)

12 Months Ended

Mar. 31, 2026

Capital and financial risk management



	2026 €m			2025 € m

Borrowings (note 21)		52,636			53,143

Cash and cash equivalents (note 19)		(8,982	)		(11,001	)

Derivative and other financial instruments included in trade and other receivables (note 14)		(2,975	)		(4,197	)

Derivative and other financial instruments included in trade and other payables (note 15)		1,812			1,906

Non-current investments in sovereign securities (note 13)		(915	)		(913	)

Short-term investments (note 13)		(3,431	)		(5,280	)

Collateral assets (note 13)		(1,169	)		(1,010	)

Financial liabilities under put option arrangements		107			97

Equity		54,365			53,916

Capital		91,448			86,661

Schedule of financial instruments exposure to credit risk



	2026 €m		2025 € m

Cash and bank deposits (note 19)		5,274		8,871

Money market funds (note 19)		3,708		2,130

Managed investment funds (note 13)		3,214		3,141

Bonds and debt securities (note 13)		1,220		4,013

Collateral assets (note 13)		1,169		1,010

Other investments (note 13)		2,170		1,134

Derivative and other financial instruments (note 14)		2,975		4,197

Trade receivables (note 14) 1		6,473		5,717

Contract assets and other receivables (note 14)		4,829		4,605

Financial Guarantees2		1,034		1,518

		32,066		36,336

Notes:

1.	Includes amounts guaranteed under sales of trade receivables € 1,868 million (2025: € 1,765 million).

2. Principally comprises Vodafone Group Plc’s guarantee of the Group’s share in a multicurrency loan facility, amounting to US$0.5 billion and

€

0.6 billion (2025: US$1.0 billion and

€

0.6 billion), which forms part of its overall joint venture investment in TPG Telecom Ltd. The Group’s share of these loan balances is included in the net investment in joint venture (see note 12 ‘Associates and joint arrangements’).

Schedule of cash collateral, which is reported within short-term borrowings, held by Group



	2026		2025

	€m		€ m

Collateral liabilities (note 21)		1,644		2,357

Schedule of movements in the allowance for expected credit losses



	Contract assets						Trade receivables held at amortised cost						Trade receivables held at fair value through other comprehensive income

	2026			2025			2026			2025			2026			2025

	€m			€ m			€m			€ m			€m			€ m

1 April		46			20			865			765			77			78

Exchange movements		(1	)		1			(24	)		(7	)		–			–

Amounts charged to credit losses on financial assets		48			85			319			360			62			31

Other 1		4			(60	)		(229	)		(253	)		(78	)		(32	)

31 March		97			46			931			865			61			77

Note:

1.	Primarily utilisation of the provision by way of write-off.

Expected credit losses are presented as net credit losses on financial assets within operating profit and subsequent recoveries of amounts previously written off are credited against the same line item.

The majority of the Group’s trade receivables are due for maturity within 90 days and largely comprise amounts receivable from consumers and business customers. The table below presents information on trade receivables past due¹ and their associated expected credit losses:



31 March 2026				Trade receivables at amortised cost past due
				30 days			31–60			61–180			180
	Due			or less			days			days			days+			Total
	€ m			€ m			€ m			€ m			€ m			€ m

Gross carrying amount		2,878			538			252			280			889			4,837

Expected credit loss allowance		(53	)		(49	)		(30	)		(126	)		(673	)		(931	)

Net carrying amount		2,825			489			222			154			216			3,906



31 March 2025				Trade receivables at amortised cost past due
				30 days			31–60			61–180			180
	Due			or less			days			days			days+			Total
	€ m			€ m			€ m			€ m			€ m			€ m

Gross carrying amount		2,553			400			134			284			736			4,107

Expected credit loss allowance		(67	)		(59	)		(27	)		(129	)		(583	)		(865	)

Net carrying amount		2,486			341			107			155			153			3,242

Note:

1.	Contract assets relate to amounts not yet due from customers. These amounts will be reclassified as trade receivables before they become due. Trade receivables at fair value through other comprehensive income are not materially past due.

Schedule of maturity analysis for non-derivative financial liabilities on an undiscounted basis



Maturity profile 1																Trade
																payables and
							Lease						Total			other financial
	Bank loans			Bonds			liabilities			Other 2			Borrowings			liabilities 3			Total
	€ m			€ m			€ m			€ m			€ m			€ m			€ m

Within one year		175			3,003			3,241			2,609			9,028			13,089			22,117

One to two years		175			2,047			2,546			1,005			5,773			469			6,242

Two to three years		394			2,444			1,972			729			5,539			–			5,539

Three to four years		62			5,559			1,441			481			7,543			–			7,543

Four to five years		75			4,490			1,269			255			6,089			–			6,089

More than five years		766			36,386			4,265			247			41,664			–			41,664

		1,647			53,929			14,734			5,326			75,636			13,558			89,194

Effect of discount / financing rates		(264	)		(20,101	)		(2,346	)		(289	)		(23,000	)		(26	)		(23,026	)

31 March 2026		1,383			33,828			12,388			5,037			52,636			13,532			66,168

Within one year		223			3,626			2,765			2,969			9,583			11,719			21,302

One to two years		171			4,426			2,081			253			6,931			138			7,069

Two to three years		79			2,034			1,756			673			4,542			–			4,542

Three to four years		176			2,628			1,434			469			4,707			–			4,707

Four to five years		69			4,893			965			422			6,349			–			6,349

More than five years		769			41,898			3,868			90			46,625			–			46,625

		1,487			59,505			12,869			4,876			78,737			11,857			90,594

Effect of discount / financing rates		(274	)		(23,103	)		(2,043	)		(174	)		(25,594	)		(8	)		(25,602	)

31 March 2025		1,213			36,402			10,826			4,702			53,143			11,849			64,992

Notes:

Maturities reflect contractual cash flows applicable except in the event of a change of control or event of default, upon which lenders have the right, but not the obligation, to request payment within 30 days. This also applies to undrawn committed facilities. There is no debt that is subject to a material adverse change clause. Where there is a choice of contractual cash flow dates, principally on ‘hybrid bonds’, the expected settlement date is used.

Includes spectrum licence payables with maturity profile

€

215 million (2025:

€

187 million) within one year,

€

215 million (2025:

€

187 million) in one to two years,

€

215 million (2025:

€

187 million) in two to three years,

€

215 million (2025:

€

187 million) in three to four years,

€

89 million (2025:

€

187 million) in four to five years and

€

60 million (2025:

€

89 million) in more than five years. Also includes

€

1,644 million (2025:

€

2,357 million) in relation to cash received under collateral support agreements shown within 1 year.

3.	Includes financial liabilities under put option arrangements and non-derivative financial liabilities presented within trade and other payables.

Schedule of maturity analysis for derivative financial liabilities on an undiscounted basis



	2026								2025
	Payable 1			Receivable 1		Total			Payable 1			Receivable 1		Total
	€ m			€ m		€ m			€ m			€ m		€ m

Within one year		(9,341	)		9,866		525			(8,207	)		8,792		585

In one to two years		(2,924	)		3,266		342			(5,780	)		6,180		400

In two to three years		(3,001	)		3,425		424			(2,363	)		2,807		444

In three to four years		(4,056	)		4,343		287			(5,782	)		6,326		544

In four to five years		(2,168	)		2,483		315			(4,174	)		4,666		492

In more than five years		(46,662	)		50,331		3,669			(47,357	)		53,987		6,630

		(68,152	)		73,714		5,562			(73,663	)		82,758		9,095

Effect of discount/financing rates							(4,399	)							(6,804	)

Financial derivative net receivable							1,163								2,291

Note:

1.	Payables and receivables are stated separately in the table above where cash settlement is on a gross basis.

Schedule of sensitivity of Group's adjusted operating profit to strengthening major currency



	Change in exchange rates

31 March 2026	Weakening 10% € m			Strengthening 10% € m

EGP		(68	)		83

TRY		(40	)		49

ZAR		(41	)		50

GBP		60			(79	)



	Change in exchange rates

31 March 2025	Weakening 10% € m			Strengthening 10% € m

EGP		(50	)		61

TRY		(24	)		29

ZAR		(101	)		124

GBP		66			(88	)

Schedule of carrying values and nominal amounts of derivatives


							Other comprehensive income											Weighted average
At 31 March 2026	Nominal amounts € m		Carrying value assets € m		Carrying value liabilities € m		Opening balance 1 April 2025 € m			(Gain)/loss deferred to OCI € m		Gain/(Loss) recycled to financing costs € m			Closing balance 31 March 2026 1 € m			Maturity year		FX rate		Euro interest rate %
Cash flow hedges - foreign currency risk 2
Cross-currency and foreign exchange swaps:
- US dollar bonds		13,964		1,230		324		(1,061	)		974		(860	)		(947	)		2044		1.15		3.69
- Australian dollar bonds		163		–		8		(1	)		(1)		2			–			2027		1.56		1.58
- Swiss franc bonds		204		46		–		(9	)		(8)		5			(12	)		2030		1.08		1.53
- Pound sterling bonds		3,154		–		284		489			114		(461	)		142			204 4		0.85		4.43
- Hong Kong dollar bonds		199		10		–		(1	)		10		(15	)		(6	)		2028		9.14		1.62
- Japanese yen bonds		78		–		24		(3	)		10		(7	)		–			2037		128.53		2.47
- Norwegian krona bonds		–		–		–		–			1		(1	)		–			–		–		–
- Foreign exchange forwards 3		–		–		–		–			6		–			6			–		–		–
Cash flow hedges - foreign currency and interest rate risk 2
Net investment hedge - foreign exchange risk 4
Cross currency and foreign exchange swaps - South African rand investment		1,024		89		–		994			17		–			1,011			2027		17.86		2.53
		18,786		1,375		640		408			1,123		(1,337	)		194


							Other comprehensive income											Weighted average
At 31 March 2025	Nominal amounts € m		Carrying value assets € m		Carrying value liabilities € m		Opening balance 1 April 2024 € m			(Gain)/loss deferred to OCI € m			Gain/(Loss) recycled to financing costs € m		Closing balance 31 March 2025 1 € m			Maturity year		FX rate		Euro interest rate %
Cash flow hedges - foreign currency risk 2
Cross-currency and foreign exchange swaps:
- US dollar bonds		16,097		2,245		138		(810	)		(307	)		56		(1,061	)		2044		1.15		3.51
- Australian dollar bonds		163		–		11		(13	)		14			(2)		(1	)		2027		1.56		1.58
- Swiss franc bonds		204		37		–		(10	)		(23	)		24		(9	)		2030		1.08		1.53
- Pound sterling bonds		4,642		58		444		333			86			70		489			2043		0.86		3.84
- Hong Kong dollar bonds		216		20		–		–			(4	)		3		(1	)		2028		9.14		1.62
- Japanese yen bonds		78		–		14		(6	)		2			1		(3	)		2037		128.53		2.47
- Norwegian krona bonds		25		–		4		(5	)		3			2		–			2025		9.25		0.37
- Foreign exchange forwards 3		–		–		–		(42	)		(1	)		43		–			–		–		–
Cash flow hedges - foreign currency and interest rate risk 2
Net investment hedge - foreign exchange risk 4
Cross currency and foreign exchange swaps - South African rand investment		1,203		124		–		898			96			–		994			2026		17.62		2.76
		22,628		2,484		611		345			(134	)		197		408

Notes:

1.	Fair value movement deferred into other comprehensive income includes € 55 million lo ss (2025: € 200 million gain) and € 1 million loss (2025: € 1 million gain) of foreign currency basis outside the cash flow and net investment hedge relationships respectively.

2.	Hedge ineffectiveness of the swaps designated in a cash flow hedge during the period was € 19 million (2025: € 28 million).

3.	Hedge ineffectiveness of swaps designated in a net investment hedge during the period was € nil (2025: € nil).

Summary of changes in assets and liabilities arising from financing activities



	Borrowings € m			Derivative and other financial instrument assets and liabilities € m			Financial liabilities under put options € m		Other liabilities1 € m			Assets and liabilities from financing activities € m

1 April 2025		53,143			(2,291	)		97		194			51,143

Cash movements

Proceeds from issuance of long-term borrowings		6,081			–			–		–			6,081

Repayment of borrowings		(11,924	)		–			–		–			(11,924	)

Net movement in short-term borrowings		(502	)		–			–		–			(502	)

Net movement in derivative and other financial instruments		–			73			–		–			73

Interest paid		(2,227	)		28			10		(68	)		(2,257	)

Purchase of treasury shares		–			–			–		(2,041	)		(2,041	)

Non-cash movements

Fair value movements		–			(14	)		–		–			(14	)

Foreign exchange		(1,642	)		1,276			–		(1	)		(367	)

Interest costs		2,324			(235	)		–		57			2,146

Net lease additions		3,190			–			–		–			3,190

Acquisition of subsidiaries		4,209			–			–		–			4,209

Other		(16	)		–			–		2,000			1,984

31 March 2026		52,636			(1,163	)		107		141			51,721



	Borrowings € m			Derivative and other financial instrument assets and liabilities € m			Financial liabilities under put options € m		Other liabilities1 € m			Assets and liabilities from financing activities € m

1 April 2024		56,987			(2,702	)		–		105			54,390

Cash movements

Proceeds from issuance of long-term borrowings		4,680			–			–		–			4,680

Repayment of borrowings		(12,963	)		–			–		–			(12,963	)

Net movement in short-term borrowings		78			–			–		–			78

Net movement in derivative and other financial instruments		–			404			–		–			404

Interest paid		(2,975	)		348			4		(82	)		(2,705	)

Purchase of treasury shares		–			–			–		(1,868	)		(1,868	)

Non-cash movements

Fair value movements		–			(45	)		–		–			(45	)

Foreign exchange		121			61			–		(4	)		178

Interest costs		2,196			(356	)		–		43			1,883

Net lease additions		4,361			–			–		–			4,361

Acquisition of subsidiaries		–			–			–		–			–

Other		658			(1	)		93		2,000			2,750

31 March 2025		53,143			(2,291	)		97		194			51,143

Notes:

1.	Movement in Other liabilities primarily relate to share buyback programmes.

Schedule of Group's financial assets and liabilities that are subject to offset in the balance sheet and the impact of enforceable master netting or similar agreements



At 31 March 2026							Related amounts not set off in the balance sheet
At 31 March 2026	Gross amount € m		Amount set off € m		Amounts presented in balance sheet € m		Right of set off with derivative counterparties € m		Collateral (liabilities)/ assets 1 € m		Net amount € m

Derivative and other financial instrument assets		2,975		–		2,975		(921)		(1,599)		455

Derivative and other financial instrument liabilities		(1,812)		–		(1,812)		921		1,169		278

Total		1,163		–		1,163		–		(430)		733



At 31 March 2025							Related amounts not set off in the balance sheet
At 31 March 2025	Gross amount € m		Amount set off € m		Amounts presented in balance sheet € m		Right of set off with derivative counterparties € m		Collateral (liabilities)/ assets 1 € m		Net amount € m

Derivative and other financial instrument assets		4,197		–		4,197		(1,146)		(2,357)		694

Derivative and other financial instrument liabilities		(1,906)		–		(1,906)		1,146		1,010		250

Total		2,291		–		2,291		–		(1,347)		944

Note:

1.	Excludes non-cash collateral of € 609 million (2025: € 613 million) which is not recognised on balance sheet, but which would become payable to the Group in the event of a counterparty default on the related derivative financial assets.