Vi Q1 FY26: Revenue up 4.9% YoY, net loss widens to Rs 6,608 crore

Vodafone Idea (Vi) reported a 4.9% year-on-year increase in revenue from operations to Rs 11,022.5 crore in Q1 FY26, up from Rs 10,508.3 crore in Q1 FY25, and marginally higher than Rs 11,013.5 crore in Q4 FY25. However, the company remained in the red, posting a net loss of Rs 6,608.1 crore—higher than Rs 6,432.1 crore a year earlier but 7.8% lower than the Rs 7,166.1 crore loss in the March 2025 quarter.

The sequential narrowing of losses from Q4 FY25 was supported by marginal revenue growth, stable EBITDA margins, and lower net finance costs, while the year-on-year widening reflected persistently high depreciation and amortisation expenses of Rs 5,472.1 crore and net finance costs of Rs 5,751.1 crore, which offset gains from higher revenues and ARPU.

Excluding the impact of Ind AS 116, depreciation and amortisation stood at Rs 3,929.9 crore and net finance costs at Rs 4,690.3 crore. Capital expenditure during the quarter was Rs 2,440 crore, in line with the company’s broader Rs 50,000–55,000 crore investment plan, primarily directed towards expanding 4G coverage, accelerating 5G rollout, and boosting network capacity. Debt from banks declined to Rs 1,930 crore as of 30 June 2025, reflecting ongoing debt reduction efforts, while cash and bank balances stood at Rs 6,830 crore.

Its Cash EBITDA (pre-Ind AS 116) increased 3.7% year-on-year to Rs 2,180.7 crore, while reported EBITDA stood at Rs 4,612.1 crore, with a margin of 41.8%.

“This has been a decisive turnaround quarter,” said Akshaya Moondra, CEO, Vodafone Idea Limited. “The investments made over the past three quarters to expand our 4G coverage have started yielding results, as reflected in the 90% lower subscriber loss compared to Q2 and Q3 of last financial year, being the lowest subscriber decline since the merger. Our 5G services are now operational in 22 cities across 13 circles, and we are committed to systematically expanding our 5G footprint, in line with growing 5G handset adoption.”

Subscriber Decline Slows as 5G Rollout Gathers Pace

Vi reduced its subscriber loss to 0.5 million during the quarter—around 90% lower than in Q2 and Q3 of the previous fiscal—marking its lowest decline since the Vodafone–Idea merger. The total user base stood at 197.7 million, of which 127.4 million were 4G/5G subscribers, up from 126.7 million a year earlier.

Customer ARPU for the quarter was Rs 177, compared with Rs 154 in Q1FY25 and Rs 175 in Q4FY25, reflecting a 15% YoY growth and a 1.1% sequential increase. Blended ARPU stood at Rs 165, up from Rs 146 a year earlier and Rs 164 in the March quarter.

Following its 5G launch in Mumbai in March 2025, Vi expanded services to 13 circles. Its 5G network is now live in 22 cities: Mumbai, Delhi, Bengaluru, Mysuru, Ahmedabad, Surat, Vadodara, Rajkot, Nagpur, Chhatrapati Sambhajinagar, Nashik, Chandigarh, Jaipur, Patna, Meerut, Agra, Sonipat, Kozhikode, Malappuram, Kochi, Madurai, and Vizag. Expansion to additional cities in all 17 priority circles is planned by September 2025.

On the 4G front, its population coverage increased to approximately 84% as of June 2025, up from 77% in March 2024, with capacity up by around 36% and speeds up by 24%. Vi added over 4,800 unique 4G towers, strengthened sub-GHz 900 MHz spectrum in 16 circles with around 9,200 site deployments, and rolled out approximately 8,800 additional sites on the 1800 MHz and 2100 MHz bands.

It also deployed approximately 13,100 Massive MIMO sites and more than 12,300 small cells, taking the total broadband site count to approximately 516,200. With further planned investments, 4G coverage is expected to reach nearly 90% of the population.

Digital Offerings and Enterprise Initiatives

Vi strengthened its product portfolio with new prepaid and postpaid propositions, including the Non-Stop Hero plan with unlimited 24x7 data, and the Vi Max Family Plan with bundled Netflix and OTT subscriptions. The ‘Vi Guarantee’ programme offered extra data and validity benefits for loyal customers.

The company also launched an eSIM upgrade option via its app, introduced a caller ID feature showing the country of origin for incoming international calls, and expanded international roaming to over 140 countries with unlimited plans in 40 markets. In financial services, Vi rolled out Vi Finance on its app, offering personal loans, fixed deposits, and credit cards in partnership with Aditya Birla Capital.

On the enterprise front, Vi Business expanded its AI-driven cloud contact centre solutions, rolled out managed wireless LAN in partnership with HPE, and scaled IoT offerings such as smart metering and device lifecycle management.

Investments, Partnerships, and Future Plans

The company reported capital expenditure for the quarter at Rs 2,440 crore, in line with Vi’s broader Rs 50,000–Rs 55,000 crore investment plan. This spend was focused on accelerating its 5G deployment, expanding 4G coverage, and boosting network capacity and speeds through additional towers, spectrum upgrades, and Massive MIMO and small cell installations.

Vi also reported that its bank debt declined to Rs 1,930 crore as of 30 June 2025, reflecting the company’s ongoing debt reduction efforts, with capex funded in part through internal accruals and existing cash reserves, which stood at Rs 6,830 crore at the end of the quarter.

In a strategic move to bridge rural and underserved connectivity gaps, Vi partnered with AST SpaceMobile to deliver direct-to-device satellite broadband to standard smartphones in areas lacking terrestrial networks. This initiative is part of its goal to extend mobile broadband to remote regions without requiring specialised devices.

Looking ahead, Vi plans to extend 5G coverage to all 17 priority circles by September 2025 and expand 4G population coverage to approximately 90%, supported by further investments in spectrum, sites, and transmission upgrades.

On the services side, the company aims to scale Vi Finance by introducing additional financial products in partnership with Aditya Birla Capital and deepen digital offerings to enhance customer stickiness. The company is also committed to securing fresh debt financing to support its capex programme and position itself for growth in India’s evolving telecom market.

Meanwhile, Vi has informed the stock exchange that its current Chief Operating Officer, Abhijit Kishore, has been appointed the new CEO, effective 19 August for three years. He will take over from Moondra whose term expires on 18 August.