Vodafone Idea reported a consolidated net loss of ₹5,975 crore for the second quarter of financial year 2026-27, compared with ₹5,524 crore in the corresponding quarter last year. Revenue from operations increased 6.2% year-on-year to ₹11,884 crore, supported by higher average revenue per user (ARPU), subscriber upgrades and improved demand for its 4G and 5G services.
The September-quarter results present a mixed picture for India’s third-largest telecom operator. While its customer base improved sequentially and network expansion accelerated, exceptional accounting charges contributed to the wider reported loss. Vodafone Idea also increased its capital expenditure, expanded 5G coverage to 400 cities and secured more than ₹10,500 crore in funding during the first half of FY27. However, its substantial spectrum and adjusted gross revenue (AGR) obligations remain major financial challenges.
Vodafone Idea Q2 FY27 Results: Key Financial Highlights
Vodafone Idea’s financial performance improved across several operating indicators, although the company continued to report substantial losses.
| Financial metric | Q2 FY27 | Q2 FY26 |
|---|---|---|
| Revenue from operations | ₹11,884 crore | ₹11,195 crore |
| Consolidated net loss | ₹5,975 crore | ₹5,524 crore |
| EBITDA | ₹4,981 crore | ₹4,685 crore |
| Cash EBITDA | ₹2,498 crore | ₹2,246 crore |
| Loss excluding exceptional items | ₹5,513 crore | ₹5,562 crore |
| Customer ARPU | ₹198 | ₹180 |
Revenue increased 6.2% year-on-year, while reported EBITDA grew 6.3%. Cash EBITDA, which excludes the impact of Ind AS 116 lease accounting, increased 11.2% to ₹2,498 crore.
An important distinction is that the company’s loss excluding exceptional items narrowed slightly to ₹5,513 crore from ₹5,562 crore a year earlier. The reported loss was higher because of a negative exceptional impact.
This suggests that the widening headline loss does not entirely reflect deterioration in its underlying operating performance.
Why Did Vodafone Idea’s Net Loss Increase?
The company’s reported net loss widened despite higher revenue and EBITDA, largely because of a ₹462 crore exceptional charge.
The charge resulted from the remeasurement of settlement assets associated with an agreement involving Vodafone Group entities and the erstwhile Vodafone India.
These settlement assets are linked to shares earmarked by certain Vodafone Group entities for Vodafone Idea under the agreement. Changes in their fair market value affected the company’s reported financial results.
The exceptional item created a significant difference between the reported and adjusted losses.
Vodafone Idea’s loss excluding exceptional items narrowed by ₹49 crore year-on-year, while the reported loss increased by ₹451 crore.
The company also faces substantial financing costs. Its finance costs increased to approximately ₹5,351 crore during the quarter, compared with ₹4,784 crore in Q2 FY26.
These expenses remain a major obstacle to achieving profitability, even as revenue and operating performance improve.
Vodafone Idea ARPU Jumps 9.7% to ₹198
One of the strongest developments in the September-quarter results was the improvement in average revenue per user.
Vodafone Idea’s customer ARPU, excluding machine-to-machine connections, increased 9.7% year-on-year to ₹198 from ₹180 in the corresponding quarter last year. It also improved from ₹195 in the June 2026 quarter.
The company attributed the growth primarily to customer upgrades, with more users moving towards higher-value plans.
ARPU is an important telecom industry metric because it measures the average monthly revenue generated from each customer. Higher ARPU can improve revenue without requiring an equivalent increase in the subscriber base.
Vodafone Idea’s customer ARPU remains below those of its larger competitors. Bharti Airtel reported an ARPU of ₹271, while Reliance Jio reported ₹218.8 for the September quarter.
The gap highlights the opportunity for Vodafone Idea to increase customer spending through better network quality, premium plans and migration towards 4G and 5G services.
Subscriber Base Improves as Postpaid Additions Accelerate
Vodafone Idea ended September 2026 with 194.4 million subscribers, compared with 193.1 million at the end of the June quarter.
The company added approximately 1.3 million subscribers sequentially, extending its recent recovery in customer additions.
Its postpaid business also recorded a notable improvement. The postpaid subscriber base increased to 33.9 million from 31.9 million in the previous quarter, representing its strongest quarterly postpaid additions in nine quarters.
Meanwhile, its combined 4G and 5G subscriber base reached 131 million, compared with 127.8 million a year earlier.
| Subscriber metric | Q2 FY27 | Previous comparison |
|---|---|---|
| Total subscribers | 194.4 million | 193.1 million in Q1 FY27 |
| Postpaid subscribers | 33.9 million | 31.9 million in Q1 FY27 |
| 4G/5G subscribers | 131 million | 127.8 million in Q2 FY26 |
| Daily data consumption | 93.6 petabytes | 73.6 petabytes in Q2 FY26 |
Daily data consumption increased 27.1% year-on-year, indicating greater usage of mobile data services.
However, the total subscriber base remained below the 196.7 million recorded in Q2 FY26. The company will need to sustain customer additions and reduce subscriber losses to strengthen its competitive position.
Vodafone Idea Expands 5G Coverage to 400 Cities
Vodafone Idea continued investing in its network during the quarter, expanding 5G coverage to 400 cities and towns across 17 telecom circles where it holds 5G spectrum.
The company also accelerated its 4G infrastructure expansion.
It added nearly 9,000 broadband towers during Q2 FY27, its highest quarterly addition in nine quarters. Over the preceding 12 months, it added more than 22,500 unique broadband sites, taking its total network count to approximately 214,000.
Its 4G population coverage reached nearly 88% as of September 2026. The company said it had extended coverage to an additional 45 million people since Q2 FY26.
Vodafone Idea’s capital expenditure reached ₹3,946 crore during the quarter, increasing more than 100% sequentially.
The company has also placed network investment orders worth more than ₹13,200 crore as part of its three-year capital expenditure guidance. Nearly ₹6,000 crore of these orders had already been executed by the time of its results announcement.
The investments are intended to improve network capacity, expand coverage and support customer retention.
Vodafone Idea Secures More Than ₹10,500 Crore in Funding
Funding remains essential to Vodafone Idea’s recovery because the company needs substantial capital to compete with Reliance Jio and Bharti Airtel.
The telecom operator said it had secured more than ₹10,500 crore in total funding during the first half of FY27, including warrants and fund-based and non-fund-based facilities.
More than ₹4,000 crore of additional bank funding was arranged during the September quarter.
As of September 30, 2026, the company reported bank debt of ₹943 crore and cash and bank balances of ₹5,470 crore.
Vodafone Idea has been seeking additional funding through bank facilities to support its network expansion plans. Its ability to secure further financing will influence how quickly it can improve coverage and compete with its larger rivals.
AGR and Spectrum Dues Remain Major Financial Challenges
Despite improvements in operations, Vodafone Idea continues to face substantial government payment obligations.
At the end of September 2026, its deferred spectrum payment obligations exceeded ₹1.31 lakh crore. Scheduled instalments against these obligations through September 2027 amounted to ₹9,216 crore.
The company also recorded approximately ₹26,264 crore in AGR dues under present-value accounting norms.
These liabilities create considerable pressure on its cash flows and limit the funds available for network investment.
The company therefore needs to balance three priorities: meeting government payment obligations, investing in network infrastructure and improving its financial performance.
The Bigger Picture
Vodafone Idea’s results reflect the difficult position of India’s telecom industry, where network investment requirements remain high and competition is intense. Higher ARPU, subscriber additions and 5G expansion indicate that the company is making progress in improving its services and customer economics.
However, its financial recovery remains incomplete. The gap between Vodafone Idea’s ARPU and those of Airtel and Jio, combined with substantial spectrum and AGR liabilities, highlights the scale of the challenge. Securing funding and converting network investments into sustainable revenue growth will be critical to its future.
Looking Ahead
Investors will closely monitor Vodafone Idea’s ability to secure additional bank funding, execute its three-year capital expenditure programme and expand 4G and 5G coverage. Sustained subscriber additions and further improvements in ARPU could strengthen revenue, but the company will also need to manage its financing costs and government obligations.
For now, Q2 FY27 demonstrates operational improvement alongside continuing financial pressure. Vodafone Idea’s next phase will depend on whether its network investments and customer recovery can translate into stronger cash generation and a more sustainable financial position.
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