Vi Reports Reduced Loss of ₹6,600 Crore in Q1

Vodafone Idea (Vi) on Thursday reported an improved financial performance for the June 2025 quarter, with its net loss narrowing to ₹6,608 crore, compared to ₹7,166 crore in Q4FY25. The results were slightly better than analyst expectations of a ₹6,853 crore loss, largely supported by rising revenues and a decline in finance costs.
The telecom operator posted revenues of ₹11,023 crore, reflecting a marginal 0.1% sequential growth, though it fell short of Bloomberg’s estimate of ₹11,153 crore.

ARPU and Subscriber Trends

The company’s average revenue per user (ARPU) continued its upward trajectory, reaching ₹177 in Q1FY26, up from ₹175 in the March quarter, representing a 1.1% growth. The improvement was driven by higher data consumption and better customer monetization.
However, the overall subscriber base slipped to 197.7 million, down from 198.2 million in Q4FY25. Despite this decline, the blended churn rate remained steady at 4.1%.
On the data front, Vi showed signs of recovery with 134.8 million data subscribers compared to 134.1 million in the previous quarter.

Leadership Transition

Vodafone Idea also announced a major change in leadership. Abhijit Kishore, currently serving as Chief Operating Officer (COO), will take over as Chief Executive Officer (CEO) from August 19, 2025, as the term of outgoing CEO Akshaya Moondra comes to an end.
Kishore has been associated with the company since 2015 and has held several senior positions, including Chief Enterprise Business Officer and leadership roles in Gujarat and Kerala circles.

Operational Highlights

Despite a shrinking customer base, Vodafone Idea reported strong momentum in key business metrics.

• Postpaid customer base grew to 26.6 million, compared to 25.6 million in Q4FY25.

• EBITDA came in at ₹4,612 crore, 1% lower sequentially and slightly below analyst projections of ₹4,655 crore.

• 4G/5G subscribers rose to 127.4 million, up from 126.4 million in the previous quarter.

• Data usage surged by 9.4% sequentially, reaching 6.7 billion GB, with per capita consumption growing to 17.74 GB, compared to 16.2 GB in Q4FY25.

Akshaya Moondra, in his final quarterly statement as CEO, described it as a “decisive turnaround quarter”, citing that subscriber losses were nearly 90% lower compared to Q2 and Q3 of FY25.

5G Rollout and Network Expansion

Vodafone Idea continues to focus on its network expansion strategy. Its 5G services are now live in 22 cities across 13 telecom circles, with the company emphasizing systematic expansion in line with the rising adoption of 5G smartphones.
The telco invested ₹2,440 crore in capex during Q1FY26, significantly lower than ₹4,230 crore in Q4FY25.

Debt and Liabilities

Vi’s financial challenges remain significant despite narrowing losses.

• Debt from banks and financial institutions rose to ₹1,930 crore, up from ₹1,710 crore at the end of March 2025.

• The company’s cash and bank balance stood at ₹6,830 crore as of June 30, down sharply from ₹99,300 crore at the end of March.

• Total payment obligations to the government were reported at ₹1.99 lakh crore, comprising deferred spectrum payments (till FY2044) and AGR dues (till FY2031).

• The telco must also clear its AGR instalment of ₹16,428 crore in FY26, along with ₹2,641 crore towards deferred spectrum dues.

Outlook

Vodafone Idea management expressed confidence in sustaining recovery through focused 4G/5G expansion, improved ARPU, and operational efficiencies. However, with heavy debt obligations and competitive market dynamics, the company’s turnaround depends on fundraising, debt financing, and subscriber retention.