Vodafone Idea’s Q1 FY26 Performance – A Mixed Bag

Vodafone Idea (Vi) announced its Q1 FY26 earnings, reporting another quarter of financial pressure, though operational indicators showed signs of recovery. The telecom operator’s net loss widened to ₹6,608 crore, compared with ₹6,432 crore in Q1 FY25, though slightly better than market estimates of around ₹7,000 crore.

Revenue from operations rose 5% year-on-year to ₹11,023 crore, driven by tariff adjustments and higher customer upgrades.

ARPU Growth Strengthens Monetisation

A key highlight was the Average Revenue Per User (ARPU), which climbed 15% YoY to ₹177, up from ₹154 a year ago. The sustained ARPU growth indicates improving monetisation and a gradual shift toward premium subscribers.

Operating Metrics Show Improvement

Vodafone Idea’s EBITDA rose 10% YoY to ₹4,612 crore, with margins improving to 41.8%. Cash EBITDA (pre-Ind AS 116) increased 3.7% to ₹2,180 crore, underscoring incremental efficiency gains.

Subscriber churn fell 90%, highlighting improved customer stickiness, while the 4G/5G subscriber base reached 127.4 million, compared with 126.7 million last year.

5G Rollout and Network Expansion

The telco continued its network push, launching 5G services in 22 cities across 13 circles, expanding 4G coverage to 84% of India’s population, and boosting 4G capacity by 36%. Average mobile internet speeds improved 24% compared with March 2024, reflecting ongoing infrastructure upgrades.

Outlook – Progress, But Challenges Remain

Despite operational improvements, Vodafone Idea’s high net losses and weak balance sheet remain key concerns. While rising ARPU, better churn management, and the 5G rollout provide some optimism, the company continues to face liquidity challenges and heavy debt obligations.

Bottom Line

Vodafone Idea Q1 FY26 results highlight a contrasting picture—financial stress persists, but operational trends like ARPU growth, margin expansion, and network rollout show that the company is making gradual progress in a tough telecom landscape.