Vodafone Idea Q3 Results FY26: Net Loss Narrows By 20% to Rs 5,286 Crore, ARPU Rises; Revenue, Margins Improve

Vodafone Idea Ltd reported a narrower consolidated loss in the December quarter of FY26, supported by steady revenue growth, higher average revenue per user (ARPU) and tighter cost controls, even as the telecom operator continues to grapple with large adjusted gross revenue (AGR) liabilities under review by authorities.

Vodafone Idea Q3 Results FY26: Net Loss Narrows on Higher ARPU and Cost Control

For the third quarter ended December 31, 2025, Vodafone Idea posted a net loss of Rs 5,286 crore, improving from Rs 6,609 crore in the year-ago period and Rs 5,524 crore in the September quarter. Revenue from operations stood at Rs 11,323 crore, marking a year-on-year increase of about 2% and a sequential rise of 1.1%.

Vodafone Idea Q3 EBITDA and Margins Strengthen Sequentially

Operational performance showed signs of stabilisation during the quarter. EBITDA rose 2.8% quarter-on-quarter to Rs 4,817 crore, while the EBITDA margin improved to 42.5% from 41.8% in the previous quarter, reflecting improved cost efficiency and better customer mix.

Vodafone Idea ARPU Rises on Subscriber Upgrades

A key highlight was the improvement in ARPU, which increased to Rs 186 in Q3FY26 from Rs 173 in Q3FY25, a year-on-year growth of 7.3%. The company said the increase was primarily driven by subscribers upgrading to higher-value plans.

Vodafone Idea Subscriber Base and 4G/5G Users

Vodafone Idea's total subscriber base stood at 192.9 million as of December 2025. The company had 128.5 million 4G and 5G subscribers, up from 126.0 million a year earlier, indicating continued migration toward data services.

Capex, Liquidity and Fundraising Updates

Capital expenditure for the quarter stood at Rs 2,252 crore, taking the nine-month FY26 capex to Rs 6,448 crore. As of December 31, 2025, bank borrowings were Rs 1,126 crore, while cash and bank balances totalled Rs 6,963 crore. During the quarter, the company raised Rs 3,300 crore through non-convertible debentures, providing additional liquidity for network and operational needs.

Vodafone Idea AGR Liability Under Reassessment

Vodafone Idea said its AGR liability remains frozen at Rs 87,695 crore as of December 31, 2025, and is currently under reassessment. Annual payments of Rs 124 crore are scheduled from FY26 to FY31, followed by Rs 100 crore per year from FY32 to FY35, with the remaining balance payable in instalments between FY36 and FY41.

The company has filed a writ petition before the Supreme Court challenging additional AGR demands and seeking reassessment and reconciliation of dues. Independent auditor S.R. Batliboi & Associates LLP flagged the AGR communication from the Department of Telecommunications as an "emphasis of matter" but did not modify its conclusion on the unaudited financial results.