Vodafone Idea (Vi) reported a consolidated net loss of ₹5,286 crore for the third quarter ended December 31, 2025 (Q3 FY26).
While the loss remains substantial, it represents a significant narrowing from the ₹6,609 crore loss reported in the same quarter last year (Q3 FY25) and the ₹5,524 crore loss in the preceding September quarter (Q2 FY26). The improvement was largely driven by a rise in Average Revenue Per User (ARPU) and a favorable resolution of key legacy issues.
1. Financial Performance: Signs of Stabilization
The results, released on January 27, 2026, show that while the company is still in the red, its operational metrics are moving in a positive direction.
| Key Metric | Q3 FY25 (YoY) | Q3 FY26 (Current) | Change (YoY) |
| Revenue from Operations | ₹11,117 Crore | ₹11,323 Crore | ↑ 1.9% |
| EBITDA | ₹4,712 Crore | ₹4,816 Crore | ↑ 2.2% |
| Net Loss (PAT) | (₹6,609 Crore) | (₹5,286 Crore) | Narrowed by 20% |
| EBITDA Margin | 42.4% | 42.5% | ↑ 10 bps |
2. Operational Highlights: High-Value Upgrades
The primary driver of revenue growth was the migration of users to higher-value 4G and 5G plans.
- ARPU Surge: Customer Average Revenue Per User (ARPU) rose to ₹186, a 7.3% year-on-year increase from ₹173 in Q3 FY25.
- 4G/5G Momentum: The broadband subscriber base (4G and 5G) increased to 128.5 million, up from 126 million a year ago.
- Subscriber Churn: Despite the growth in high-value users, the total subscriber base shrank to 192.9 million (from 199.8 million YoY) as the company continues to lose low-value, 2G customers.
- Data Consumption: Average monthly data usage per 4G/5G subscriber surged 26.7% to reach 19.2 GB.
3. The “Inflexion Point”: Legacy Resolutions
CEO Abhijit Kishore described this quarter as a major turning point due to three critical developments:
- AGR Breather: The Department of Telecommunications (DoT) has frozen Vi’s Adjusted Gross Revenue (AGR) liability at ₹87,695 crore, pending reassessment. The company now has a 10-year payment plan with minimal immediate cash outflow.
- Settlement with Vodafone Group: Vi concluded a settlement for the ₹6,394 crore Contingent Liability Adjustment Mechanism (CLAM) receivable from the Vodafone Group.
- Fundraising Success: During the quarter, the company successfully raised ₹3,300 crore through Non-Convertible Debentures (NCDs) despite the existing debt overhang, reflecting renewed lender confidence.
4. Capex and Future Debt Strategy
- Network Investment: Capex for the quarter stood at ₹2,252 crore. The company plans to utilize the NCD proceeds to further expand its 4G coverage and 5G rollout.
- Total Debt: The company’s total debt remains a massive ₹2.09 lakh crore, largely composed of government dues for spectrum and AGR. However, bank debt has been trimmed to just ₹1,126 crore.
- 5G Rollout: Vi is now live with 5G services in 43 cities across all 17 priority circles, covering approximately 99% of its revenue-generating regions.
Conclusion: Buying Time for a Turnaround
The Q3 FY26 results suggest that Vodafone Idea is moving out of “survival mode” and into a phase of “stabilization.” With the government’s 10-year moratorium on major AGR payments and a rising ARPU, the company has secured the breathing room needed to execute its ₹55,000 crore capex plan. However, the massive gap in ARPU compared to rivals Bharti Airtel (₹256) and Reliance Jio (₹214) remains the final hurdle the company must clear to achieve true escape velocity.
