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    Vodafone Idea Q4 FY26 earnings call

    IDEA
    Telecommunication·18 May 2026
    Management Summary

    Vodafone Idea reported a strong Q4 FY26, marked by the resolution of the AGR matter which led to a substantial exceptional gain and net profit. The company demonstrated operational improvements with revenue and ARPU growth, subscriber base stabilization, and significant network expansion. Management outlined ambitious capex plans for the next three years, supported by promoter equity and anticipated debt funding, aiming for sustained growth and profitability.

    Highlights

    5

    • AGR liabilities significantly reduced to ₹64,046 Crore, leading to an exceptional P&L credit of ₹55,622 Crore.

    • Q4 FY26 Revenue of ₹11,332 Crore, up 2.9% YoY, and FY26 Revenue of ₹44,873 Crore, up 3.0% YoY.

    • Customer ARPU grew 8.3% YoY to ₹190 in Q4 FY26, driven by premiumization and unlimited data offerings.

    • Subscriber base stabilized at 192.8 million, with 4G/5G subscribers increasing to 128.9 million.

    • Bank debt reduced by ₹1,600 Crore to ₹726 Crore as of March 31, 2026, with a free cash balance of ₹3,715 Crore.

    Concerns

    2

    • Potential for some inflation on network opex going forward, despite past efficiency efforts.

    • VLR subscriber percentage remains lower than peers due to network experience patchiness, impacting churn.

    What Changed2

    vs Q1 FY27

    Guidance items10 → 8 (-2)Risks discussed4 → 2 (-2)
    Key financials

    Metrics

    10

    Periods

    3

    Headline

    5
    • Revenue
      ₹11,332 Cr
      YoY+2.9%
    • EBITDA
      ₹4,889 Cr
      YoY+4.9%
    • EBITDA Margin
      43.1%
    • Cash EBITDA
      ₹2,432 Cr
      YoY+4.8%
    • Customer ARPU
      ₹190
      YoY+8.3%

    Q4 FY26

    1
    • Net Profit
      ₹51,970 Cr

    FY26

    4
    • Revenue
      ₹44,873 Cr
      YoY+3%
    • EBITDA
      ₹19,003 Cr
    • Cash EBITDA
      ₹9,217 Cr
      YoY+0.2%
    • Net Profit
      ₹34,552 Cr

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹2,294 crores this quarter · ₹45,000 crores (next three years) planned

    new plan · Rs. 25,000 Crores funded facility and Rs. 10,000 Crores non-funded facility

    Debt

    Debt disclosed

    Liquidity

    Cash ₹3,715 crores

    Free cash bank balance as of March 31, 2026.

    Guidance & targets

    7
    CategoryTargetPriority
    Capex
    Total Capex
    ₹45,000 Crores
    		High
    EBITDA Margin
    Cash EBITDA Margin
    North of 35%
    		High
    EBITDA
    EBITDA
    3x
    		High
    Subscriber
    Net Customer Addition
    Sustained
    		High
    Churn
    Churn Reduction
    0.5% - 0.6%
    		High
    Network Coverage
    New 4G Sites
    60,000 to 70,000
    		High
    Network Coverage
    New Population Covered
    125 million
    		High

    What to watch in Q1 FY27

    5

    Debt fundraise closure

    next quarter
    CurrentSBI-led consortium engagement ongoing
    TargetClosure of funding facilities

    Why it matters

    Securing funding is critical for executing the planned capex and achieving growth targets.

    We are deeply engaged, as we have said, it's an SBI-led consortium which is looking into this, the consortium is composed of PSU banks, private banks as well as the foreign banks. And we are confident of closing that very fast.

    Risks & concerns

    2
    RiskSeverity

    Inflation on network opex

    While efficiency efforts have offset cost increases, some inflation on network opex is anticipated going forward. — Management acknowledged

    medium

    Competitive intensity and churn

    VLR percentage is lower than peers due to patchy network experience leading to churn; company is addressing this through network investments and quality focus. — Both acknowledged

    medium

    Q&A highlights

    8

    “One, obviously, as you rightly said and which is also reflected in the data consumption that you saw, which has grown over 30%, which clearly reflects that the customers are now experiencing a very different network across the country. Second, the increase that we see in our unlimited data customers and the proposition which is a differentiated proposition that we launched last year, which is the Nonstop Hero, which gives the customer the freedom of using unlimited data for 24 hours, that is pushing.”

    Clarifies the specific factors contributing to ARPU growth, including network improvements and the success of unlimited data plans, indicating sustainability.

    asked by Sanjesh Jain

    2 min read6 chapters

    Detailed Narrative

    01

    AGR Resolution and Significant Financial Impact

    The company announced a significant resolution to the Adjusted Gross Revenue (AGR) matter. Following a DoT committee review, AGR dues were finalized at ₹64,046 Crore as of December 31, 2025, a reduction from the earlier frozen figure of ₹87,695 Crore. This led to the derecognition of a ₹80,502 Crore financial liability and recognition of a revised ₹24,880 Crore liability. The resulting difference of ₹55,622 Crore was credited to the P&L as an exceptional item📎, contributing to a net profit of ₹51,970 Crore in Q4 FY26 and ₹34,552 Crore for the full FY26.

    02

    Strong Operational Performance and ARPU Growth

    Vodafone Idea reported a Q4 FY26 revenue of ₹11,332 Crore, marking a 2.9% YoY growth, with full-year FY26 revenue reaching ₹44,873 Crore, up 3.0% YoY. Customer ARPU continued its upward trend for the 19th consecutive quarter, growing 8.3% YoY to ₹190 in Q4 FY26. This ARPU expansion was primarily driven by premiumization, reflected in the improving 4G/5G subscriber mix, which reached 66.9% in Q4 FY26, up from 63.8% in Q4 FY25.

    03

    Subscriber Base Stabilization and Data Usage Growth

    The company successfully stabilized its subscriber base at 192.8 million in Q4 FY26, registering an improvement in subscriber numbers for the first time post-merger in February and March. 4G/5G subscribers increased to 128.9 million from 126.4 million in Q4 FY25. Data usage saw robust growth, increasing over 30% YoY to 83.0 Petabyte/day in Q4 FY26, while average data usage per 4G/5G subscriber improved 27.2% YoY to 20.2 GB.

    04

    Aggressive Network Expansion and 5G Rollout

    Vodafone Idea has deployed over ₹16,000 Crore in capex over the last six quarters, adding approximately 30,000 unique broadband towers and expanding 4G capacity by over 27%. The company has made significant strides in 5G rollout, with services now live in over 80 cities across all 17 circles where it holds 5G spectrum. The plan includes adding 60,000 to 70,000 new 4G sites over the next 12-18 months, extending coverage to an additional 125 million people.

    05

    Capital Allocation and Funding Outlook

    The company's FY26 capex stood at ₹8,742 Crore. For the next three years, a capex of ₹45,000 Crore is planned, to be supported by a ₹25,000 Crore funded facility and a ₹10,000 Crore non-funded facility. Bank debt was significantly reduced by ₹1,600 Crore to ₹726 Crore as of March 31, 2026, with a free cash bank balance of ₹3,715 Crore. The promoter group has committed an additional equity infusion of ₹4,730 Crore, reinforcing commitment to long-term growth.

    06

    Strategic Initiatives and Future Growth Ambition

    Vodafone Idea is focusing on differentiated product offerings like 'Non-stop Hero' for unlimited data, which has seen 25% sequential growth. The company is enhancing its Vi app with AI capabilities, including an AI-powered recharge assistant. Management outlined a clear ambition for the next three years: sustained net customer addition, double-digit revenue growth, and 3x EBITDA, with a target of achieving an EBITDA margin north of 35%.

    This is an AI-generated summary of a publicly available earnings call transcript.