Vodafone Idea Q4FY26: Vi clocks Rs 51,970 crore net profit on one-time gain; revenue rises 3%

The company’s Q4FY26 revenue from operations rose 3% Y-o-Y to Rs 11,332 crore in Q4FY26 from Rs 11,017 crore in Q4FY25, the filing showed. On a sequential basis, revenue was nearly flat compared with Rs 11,323 crore in Q3FY26.

Profit boosted by one-time AGR accounting gain

The sharp swing to profit was not driven by operating earnings alone. Vodafone Idea said its financial results reflected the impact of reassessment of AGR dues and recognition of the present value of future AGR payments. 

According to the company’s results note, the Department of Telecommunications had confirmed AGR dues frozen as on December 31, 2025 at Rs 87,695 crore, which were subsequently reassessed to Rs 64,046 crore for the period FY2006-07 to FY2018-19.

Revenue, EBITDA improve

Vodafone Idea’s earnings before interest, tax, depreciation and amortisation stood at Rs 4,889 crore at the end of Q4FY26, up 4.9% from the year-ago period. 

For the full year FY26, Vodafone Idea reported revenue of Rs 44,873 crore, up 3% from FY25. Annual EBITDA stood at Rs 19,003 crore, compared with Rs 18,127 crore in the previous year, a growth of 4.8%, according to the company filing.

Subscriber additions turn positive

Vodafone Idea’s 4G and 5G subscriber base rose to 128.9 million in Q4FY26 from 126.4 million in Q4FY25. The company also said its subscriber additions turned net positive from February 2026, marking an important operational milestone after a long period of subscriber losses.

Customer average revenue per user, or ARPU, increased to Rs 190 in Q4FY26 from Rs 175 in Q4FY25, reflecting year-on-year growth of 8.3%.

AGR dues remain a key liability

Despite the accounting gain, AGR dues remain a key liability for Vodafone Idea. The company said AGR payments of Rs 64,046 crore are to be paid over a staggered schedule.

As per the results note, minimum annual payments of Rs 100 crore each are payable from March 2032 to March 2035. This will be followed by annual payments of Rs 10,608 crore each from March 2036 to March 2041.

Vodafone Idea also said it has to pay spectrum usage charges of Rs 609 crore, along with interest, for FY2017-18 and FY2018-19. These payments are to be made in annual installments of Rs 124 crore each from March 2026 to March 2031.

The company said that, based on recent developments related to the AGR matter, it was confident of generating sufficient cash flow from operations to meet its obligations, including lender, spectrum and AGR dues payable over the next 12 months and as they fall due.

The results come shortly after Kumar Mangalam Birla returned as Vodafone Idea’s non-executive chairman. The company’s Q4 financial results were signed on behalf of the board by Birla in his capacity as non-executive chairman.

During the quarter, Vodafone Idea’s board approved the issuance of fully convertible warrants worth Rs 4,730 crore, or about $500 million, to an Aditya Birla Group promoter entity on a preferential basis. Each warrant will be convertible into one fully paid-up equity share.

Management sees benefits of network investments

Vodafone Idea CEO Abhijit Kishore said the benefits of the company’s capex investments and network rollout were becoming clearly visible. He said Q4FY26 marked a decisive step forward, with all seven key performance parameters showing sequential improvement.

Kishore said the company turning net positive on subscriber additions from February 2026 was a significant milestone and reflected the impact of sustained network investments.

During FY26, Vodafone Idea launched 5G services across 83 cities. It also expanded its 4G coverage by 48 million, taking coverage to over 86% of the population. The company’s 4G data capacity increased by more than 12% compared with FY25.

The company’s total unique broadband towers stood at 202,008 at the end of the year, with the addition of more than 17,300 towers during FY26. Capex spending during the year stood at Rs 8,742 crore.