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Informist, Tuesday, Jan. 27, 2026

 

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--Vodafone Idea Oct-Dec consol net loss INR 52.86 bln
--Vodafone Idea Analysts saw Vodafone Idea Oct-Dec consol net loss at INR 65.63 bln
--Vodafone Idea Oct-Dec consol revenue INR 113.23 bln
--Vodafone Idea Analysts saw Vodafone Idea Oct-Dec consol revenue at INR 112.40 bln
--Vodafone Idea Q3 consol loss INR 52.86 bln vs loss INR 55.24 bln qtr ago
--Vodafone Idea Q3 consol revenue INR 113.23 bln vs INR 111.95 bln qtr ago
--Vodafone Idea Apr-Dec consol loss INR 174.18 bln vs loss INR 202.17 bln
--Vodafone Idea Apr-Dec consol revenue INR 335.41 bln vs INR 325.57 bln
--Vodafone Idea Q3 net loss includes one-time income INR 10.78 bln
--Vodafone Idea Q3 loss excluding exceptional income INR 63.64 bln
--Vodafone Idea Q3 consol reported EBITDA INR 48.16 bln vs INR 46.85 bln QoQ
--Vodafone Idea Q3 consol reported EBITDA margin 42.5% vs 41.9% qtr ago
--Vodafone Idea Oct-Dec ARPU INR 186 vs INR 180 qtr ago, INR 173 yr ago
--Vodafone Idea Subscriber base 192.90 mln on Dec 31 vs 196.70 mln qtr ago
--Vodafone Idea Oct-Dec capex INR 22.52 bln, Apr-Dec capex INR 64.48 bln
--Vodafone Idea Debt from bks INR 11.26 bln Dec 31 vs INR 15.30 bln qtr ago
--Vodafone Idea: Cash and bank balance at INR 69.63 bln as of Dec 31

 

By Arya S. Biju

 

MUMBAI – A one-time income on account of provision written back on remeasurement of settlement assets helped Vodafone Idea Ltd. narrow its net loss in the December quarter despite its finance costs rising in early twenties on a sequential basis. The telecommunications company reported a better-than-expected financial performance for the quarter with both top line and bottom line beating analysts' view.

 

The debt-ridden company's consolidated net loss for the December quarter narrowed to INR 52.86 billion, from INR 55.24 billion in the September quarter and INR 66.09 billion in the corresponding quarter a year ago. It was also lower than the net loss of INR 65.63 billion estimated by the Street.

 

The company's consolidated net loss for the quarter included a one-time income of INR 10.78 billion. This included a provision written back on settlement assets of INR 12.28 billion and a cost of INR 1.59 billion on account of the new labur codes, which became effective in November. Even after adjusting for the impact of the one-time income, the company's net loss of INR 63.64 billion for the quarter is substantially lower than the Street's view.

 

Vodafone Idea's consolidated net sales for the quarter grew a little over 1% sequentially and around 2% on year to INR 113.23 billion. This was also better than the INR 112.40 billion estimated by analysts. The company's top line for the quarter was supported by a higher average revenue per user and higher data consumption.  More

 

The company's total expenses for the December quarter rose over 6% sequentially to INR 178.84 billion, outpacing the 1% growth in its net sales. This was mainly because of a 22% sequential rise in finance costs to INR 58.28 billion.

 

Among other expenses, costs related to depreciation and amortisation for the quarter fell marginally to INR 55.50 billion from INR 55.68 billion reported in the trailing quarter. Network costs and information technology outsourcing expenses for the quarter also declined to INR 23.61 billion from INR 23.63 billion reported a quarter ago. Marketing, content, customer acquisition and service costs for the quarter fell around 2% sequentially to IRN 11.59 billion.

 

OPERATIONAL METRICS

The company's consolidated earnings before interest, tax, depreciation and amortisation for the December quarter were INR 48.16 billion, up around 3% sequentially and over 2% on year. This was also higher than the INR 47.20 billion estimated by the Street. Its EBITDA margin for the quarter improved 60 basis points sequentially and 10 bps on year to 42.5%.

 

The company's customer average revenue per user for the reporting quarter, excluding machine-to-machine services, rose over 3% sequentially and 7.5% on year to INR 186, supported primarily by customer upgrades, Vodafone Idea said in a post-earnings press release. The company's blended average revenue per user for the quarter rose around 3% sequentially and around 6% on year to INR 172. This was better than the INR 168–INR 169 blended average revenue per user estimated by analysts. 

 

The company lost 3.80 million subscribers during the December quarter, taking its total customer base to 192.90 million. This was higher than the 1 million subscribers it lost in the September quarter. Its blended churn rate for the quarter increased sequentially to 4.4% from 4.3% in the trailing quarter.

 

As of Dec. 31, Vodafone Idea had 128.5 million fourth-generation or fifth-generation subscribers, higher than 127.8 million at the end of the preceding quarter and 126 million in the corresponding quarter a year ago. The company's fifth-generation services are now available in 43 cities in all 17 circles, Vodafone Idea said in a post-earnings quarterly update. "Since the launch of Vi 5G services in Mumbai in March 2025 we have expanded it to all 17 priority circles where we hold 5G spectrum. These circles contribute to (around) 99% of our revenue," Vodafone Idea said.

 

Vodafone Idea's fourth-generation coverage increased to 85.5% as of Dec. 31, from around 77% as of March 2024, it said. With its planned investments, the company expects this to improve to 95%. Further, its fourth-generation data capacity expanded by over 43%, driving a 22% improvement in fourth-generation network speeds as compared to March 2024. Alongside fifth-generation rollouts, the company said it will continue to invest in expanding high-speed broadband network by adding new fourth-generation sites and upgrading its core and transmission network for high speed broadband network.

 

The company's capital expenditure in the December quarter was INR 22.52 billion. For the nine months ended December, the capital expenditure was INR 64.48 billion. As of Dec. 31, the company's debt from banks was INR 11.26 billion, down from INR 15.30 billion as of Sept. 30. Its cash and bank balance was INR 69.63 billion, up from INR 30.80 billion as of Sept. 30.

 

During the quarter, the company raised INR 33 billion through non-convertible debentures despite the adjusted gross revenue dues overhang, reflecting the lender confidence in the company's ability to improve its business performance, Abhijit Kishore, chief executive officer of the company, said in the press release. "This quarter marked an important inflection point for the company with positive resolution of key legacy issues. We are thankful to the Government for offering a definitive, long-term and conclusive solution on the AGR (adjusted gross revenue) matter," Kishore said.

 

The company's adjusted gross revenue liability is frozen as of Dec. 31 at INR 876.95 billion and is subject to reassessment, Vodafone Idea said. Of this, INR 1.24 billion will be paid annually in the next six years and INR 1 billion will be paid annually in the following four years till FY35. The balance dues will be paid in six equal instalments over FY36 to FY41.

 

For the nine months ended December, the company reported a consolidated net loss of INR 174.18 billion, lower than the net loss of INR 202.17 billion in the year-ago period. Its consolidated net revenue for the period rose over 3% on year to INR 335.41 billion.

 

The company announced its December quarter earnings post-market hours. Tuesday, shares of the company closed over 1% lower at INR 9.83 on the National Stock Exchange.  End

 

Edited by Ashish Shirke

 

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