Vodafone Idea is shifting its focus from repairing its balance sheet and strengthening its network to delivering growth, with Chairman Kumar Mangalam Birla saying FY27 would be a year of execution and delivery for the telecom operator.
Addressing shareholders at the company’s 31st annual general meeting on Thursday, Birla said the company had made significant progress in addressing legacy challenges, restoring financial flexibility and investing in its network, putting it in a stronger position to participate in India’s expanding digital economy.
“The foundations have been laid. Significant progress has been made… The focus now shifts to disciplined execution, operational excellence and translating these investments into sustainable growth,” Birla said.
A key change during FY26 was greater clarity on Vodafone Idea’s future financial obligations following the reassessment of its adjusted gross revenue (AGR) liabilities by the Department of Telecommunications. Birla said the resolution of the long-standing issue had improved visibility on the company’s future obligations and cash flows.
Operational Turnaround
The improvement in the company’s operating metrics has also strengthened the case for a shift towards growth. Monthly subscriber additions turned positive from February, while average revenue per user (Arpu) rose to Rs 190. Birla described the year-on-year improvement as the strongest among the three telecom operators.
Vodafone Idea ended March with 192.8 million subscribers, including nearly 129 million 4G and 5G users. Its 4G population coverage crossed 86%, while its broadband tower count increased to more than 200,000.
The momentum has continued into FY27, with the company reporting its first quarter of net subscriber additions since the merger. Its 5G services are now available in more than 200 cities, with further expansion planned across key circles.
But Birla cautioned that the industry’s financial health remains a constraint on the next phase of network investment. He called for tariff rationalisation, pointing to India’s average revenue per user as among the lowest globally.
“Continued investments in network expansion and next-generation technologies require a financially healthy telecom ecosystem,” he said.
Vodafone Idea’s revenue rose to Rs 44,873 crore in FY26, while Ebitda increased to Rs 19,003 crore. The company reported a net profit of Rs 34,552 crore, but this was largely a one-time benefit from the reduction in AGR liabilities and recognition of the present value of future payments.