Vodafone Idea reported a net loss of Rs 3,754 crore, as compared to a profit of Rs 51,970 crore in the March quarter, on account of the absence of one-time gains on the back of reassessment of adjusted gross revenue (AGR) dues in the fourth quarter of FY6.
On a like to like basis (net profit before exceptional items), net loss narrowed slightly sequentially to Rs 5,365 crore against Rs 5,521 crore in the March quarter. Net loss was lower than Bloomberg estimates of Rs 5,391 crore.
Revenue from operations in Q1 stood at Rs 11,689 rising 3.2% over Rs 11,332 crore in the previous quarter. Vodafone Idea beat Bloomberg estimates of Rs 11,499 crore on revenue.
Earnings before interest, tax, depreciation and amortisation (Ebitda) came in at Rs 5,034 crore was 3% higher than Rs 4,889 crore in the preceding period, slightly trailing Bloomberg estimates of Rs 4,959 crore. EBITDA margin was flat sequentially at 43.1% (Q4: 43.1%).
Operational Performance
Chief executive Abhijit Kishore said that the telco’s Q1FY27 performance presented a validation of its defined strategy and disciplined execution.
“Our investments are delivering tangible results with revenue growth of 6% YoY and quarterly EBITDA crossing Rs 5,000 Crore with a YoY growth of 9.1%. During the quarter, we have delivered on all the critical business parameters we measure our success on. Our 5G is now live in over 200 cities,” he said.
Blended average revenue per user (Arpu) rose to Rs 177 from Rs 174 in the previous quarter. However, this remains lower than that of peers. Reliance Jio reported Arpu of Rs 215.6 in the period, rising from Rs 214 sequentially. Vodafone Idea’s mobile only Arpu was Rs 195 in Q1, compared to Rs 190 in Q4. Bharti Airtel saw mobile only ARPU increase to Rs 264 in Q1 from Rs 257 in Q4.
Vodafone Idea’s subscriber base stood at 193.1 million at the end of the quarter, compared with 192.8 million in the preceding three-month period, registering the first subscriber base expansion since the merger of erstwhile entities Vodafone and Ideal Cellular.
The telco reported an increase in its 4G/5G subscriber base to 130.1 million up from 128.9 million in Q4FY26, indicative of ongoing customer migration toward higher-speed data services.
Total data consumption on the network increased to 8.84 billion GB from 8.3 billion GB in Q4 while per capita data consumption rose to 21.7 GB per month as compared to 20.2 GB per month in the December quarter.
The telco expanded its 4G coverage to 87% of the population against 86.3% at the end of March.
As on June 30 Vodafone Idea’s debt from banks stood at Rs 211 crore (Q4: Rs 726 crore) while cash and bank balance stood at Rs 6,558 crore (Q4: 3,715 crore) aided by the receipt of part proceeds from warrant issuance this quarter.
Capex for the quarter stood at Rs. 1,930 crore, slowing down from Rs 2,294 crore in the March quarter.
“Our on-ground execution intensity continues with capex orders worth Rs. 9,000 Crore already placed. The ongoing conversation with the lenders gives us the confidence of successful closure of debt discussions. With all critical business parameters now moving in the right direction our focus remains on execution and AI led transformation across the organisation,” Kishore added.
The company added that it secured funding of Rs 6,400 crore during the quarter including warrants, fund & non-fund-based facilities. Of this, Rs 1,182 crore was raised through promoters Aditya Birla Group as part of the Rs 4,370 crore committed by ABG earlier in the quarter.