Vodafone Idea Reports Net Loss of Rs 5,286 Crore in December Quarter

Debt-laden telecom operator Vodafone Idea announced its financial results for the quarter ended December after market hours on January 27. The company reported a net loss of Rs 5,286 crore, marking an improvement compared to both the year-ago period and the previous quarter, aided by lower expenses and steady revenue growth.

Vodafone Idea December Quarter Results

Struggling telecom operator Vodafone Idea reported its financial performance for the quarter ended December on January 27 after market close. The company posted a net loss of Rs 5,286 crore, lower than the Rs 6,609 crore net loss recorded in the same quarter last year.

In the preceding quarter, Vodafone Idea had reported a net loss of Rs 5,524 crore, indicating a sequential improvement in profitability.

Lower Expenses Help Reduce Losses

The smaller-than-expected decline in losses was primarily driven by a reduction in expenses. Total costs for the quarter stood at Rs 17,884 crore, compared to Rs 17,974 crore in the corresponding quarter last year.

The company also reported a decline in finance costs, which include interest payments on debt and other liabilities, contributing further to the narrowing of losses.

Revenue From Operations Sees Modest Growth

Vodafone Idea’s revenue from operations increased:

• 2 percent year-on-year

• 1.15 percent quarter-on-quarter

to reach Rs 11,323 crore during the December quarter.

The improvement has been attributed to network expansion and higher data consumption on the company’s network.

December Quarter Proves Crucial for the Company

Commenting on the results, Vodafone Idea CEO Abhijit Kishore said the quarter marked a significant turning point for the company, with several long-standing issues seeing positive resolution.

He added that the company is grateful to the government for providing a certain, long-term, and decisive solution to the AGR issue, and confirmed the completion of the settlement of Rs 6,394 crore CLAM receivables with the Vodafone Group.

Relief on AGR Dues

Vodafone Idea announced its quarterly results at a time when it has received relief from the government on payments related to Adjusted Gross Revenue (AGR) dues.

The Cabinet had decided on December 31 to freeze the company’s AGR dues of Rs 87,695 crore outstanding as of the end of December.

AGR Dues Payment Plan Approved

The government has approved a payment plan allowing Vodafone Idea to repay its frozen AGR dues between FY32 and FY41.

As per the plan:

• From March 2026 to March 2031, the company will pay a total of Rs 744 crore over six years, with annual payments capped at Rs 124 crore

• From March 2032 to March 2035, the company will pay Rs 100 crore per year for four years

Meanwhile, following Supreme Court directions in October and November, the government has begun a reassessment of Vodafone Idea’s AGR dues. Analysts and government officials have indicated that the final AGR liability could be reduced once the reassessment process is completed.

Subscriber Losses Continue, ARPU Sees Modest Growth

During the quarter, Vodafone Idea lost 3.8 million subscribers, bringing its total subscriber base down to 192.9 million by the end of December.

In the absence of any major tariff hikes, growth in Average Revenue Per User (ARPU) remained limited. However:

• ARPU increased 3 percent quarter-on-quarter to Rs 172 per month

• In the previous quarter, ARPU stood at Rs 167 per month

EBITDA Performance

Vodafone Idea reported EBITDA of Rs 4,816 crore, up 2.8 percent from Rs 4,685 crore recorded in the previous quarter, indicating gradual operational improvement.