Vodafone Idea Q2 FY26: Losses narrow, stability returns

Vodafone Idea Limited (VIL), the third-largest telecommunications provider in the country, reported a net loss of Rs 5,525 crore for the second quarter of FY26 (July to September). This marks a notable improvement, as the company’s net loss has narrowed to its lowest level in the past five quarters, reflecting enhanced operational efficiency.

Operating revenue for the quarter stood at Rs 11,194 crore, remaining largely stable compared with the previous period. A key positive development was the sharp reduction in interest and financing costs, which contributed to the smaller loss relative to earlier quarters.

Vodafone Idea – Q2 FY26 performance overview

The company’s subscriber base continued to decline, falling from 197.7 million in the previous quarter to 196.7 million in Q2 FY26. However, the postpaid user base grew strongly, rising from 26.6 million to 27.9 million. The number of 4G/5G subscribers also inched up from 127.4 million to 127.8 million quarter-on-quarter (QoQ).

Average revenue per user (ARPU) improved from Rs 177 to Rs 180 QoQ, while the blended churn rate increased slightly from 4.1% to 4.3%, a metric that remains an area of concern for the business.

The telco achieved a significant expansion in 4G population coverage, which increased from 78.8% to 84.4%. Capital expenditure (capex) for the first half of FY26 amounted to Rs 42 billion, with Rs 17.5 billion invested during the current quarter. The company’s cash and bank balance stood at Rs 30.8 billion, while bank debt reduced to Rs 15.3 billion.

During the quarter, Vodafone Idea installed over 1,500 new 4G towers, bringing the total number of broadband sites to approximately 527,000. The company also deployed more than 12,400 small cells and over 13,000 massive MIMO sites. Looking ahead, VIL plans to roll out nearly 12 million smart metering systems over the next three years.

As of 30 September 2025, the company had 196.7 million subscribers, with around 65% being 4G/5G users. This substantial base provides a strong platform for converting the remaining ~35% of voice-only customers into data service and digital product users as VIL continues to expand its broadband coverage and network capacity.

Spectrum holdings overview 

Vodafone Idea holds a total of 8,030.4 MHz of spectrum across multiple frequency bands, of which 8,012.8 MHz is liberalised and can be used for any technology. This includes:

• Sub-GHz 900 MHz band spectrum in seven circles – Andhra Pradesh, Tamil Nadu, Karnataka, Punjab, Rajasthan, Uttar Pradesh (East), and Kolkata.

• 1800 MHz band spectrum in Madhya Pradesh.

• 2500 MHz band spectrum in Bihar – all acquired during the June 2024 auction.

Additionally, VIL owns mmWave 5G spectrum (26 GHz band) in 16 circles and mid-band 5G spectrum (3300 MHz band) in 17 priority circles, positioning the company well for future network upgrades and digital growth.

Quarterly Financial Summary (Rs in millions)