Vodafone Idea Q2 FY2025-26 Financial Report (with Management Guidance)

Snapshot: On November 10, 2025, Vodafone Idea (Vi) reported a narrower consolidated net loss of ₹5,524.2 crore for Q2 FY26 (quarter ended September 30, 2025). Revenue from operations rose to ₹11,194.7 crore, up 2.4% YoY and 1.6% QoQ, while ARPU climbed to ₹180 (ex-M2M), up ~8.7% YoY as the mix continued to shift toward higher-paying customers. The subscriber base stood at 196.7 million, with 127.8 million 4G/5G users.

Context vs last quarter and last year: In Q1 FY26, Vi posted ₹11,022–11,023 crore of revenue, ARPU ₹177, and a net loss of ₹6,608 crore as per regulatory-filing coverage. A year ago, in Q2 FY25, revenue was ₹10,932.2 crore, ARPU ₹166, and net loss ₹7,175.9 crore. 4G/5G users then were ~125.9 million and total subs were higher at ~205 million. The YoY picture shows revenue and ARPU growth with a materially smaller loss, despite continued churn.

Comparison Table: Q2 FY26 vs Q1 FY26 vs Q2 FY25

Sources: Q2 FY26: ET/Upstox/Mint/Business Standard. Q1 FY26: Mint/ET callouts; subscriber and 4G/5G figures from Vi’s Q1 call transcript. Q2 FY25: Reuters/Mint/ET coverage.

What drove Q2 FY26

In Q2 FY26, Vi’s revenue growth was modest but positive, helped by ARPU accretion to ₹180. ARPU expansion reflects (a) customer upgrades into higher-value plans, (b) tariff actions taken over the past year, and (c) an improving mix of 4G/5G users. Sequentially, revenue improved despite ongoing subscriber churn, underscoring that Vi is leaning more on premiumization than on gross additions to lift topline. Management disclosures and media summaries also highlight that the loss narrowed YoY on the back of improved operating metrics, though the company remains loss-making.

On the operating base, Vi ended the quarter with 196.7 million subscribers and 127.8 million 4G/5G users, up YoY from 125.9 million. The company noted continued 4G/5G adoption despite total user attrition, indicating traction in higher-paying cohorts.

Management Guidance & Strategy

Capex & Funding: Vi has repeatedly guided to a ₹50,000–₹55,000 crore capex over three years to rebuild 4G coverage in 17 priority circles, expand capacity, and roll out 5G in key markets. This guidance was reiterated across investor communications and media interactions through FY24–FY26, supported by the equity raise (including the ₹18,000 crore FPO in 2024) and subsequent debt plans. Recent coverage also points to short-term debt raises via its infrastructure subsidiary to support rollout. Execution against this capex roadmap remains the crux of the turnaround.

5G rollout & network focus: Post the March 2025 Mumbai 5G launch, Vi stated in its Q1 FY26 earnings call that 5G was live in 22 cities across 13 circles with plans to extend to all 17 priority circles by September 2025. Industry reports through May–October 2025 tracked this expansion across Delhi-NCR and other metros, aligned to the three-year capex plan. The network strategy is to densify 4G, selectively add 5G capacity in high-device-density markets, and push ARPU via premium packs and postpaid.

ARPU path: Management commentary and coverage suggest the ARPU lever is primarily upgrades and pricing, not just subscriber growth. With ARPU at ₹180 in Q2 FY26 (vs ₹166 a year ago), Vi still trails Airtel and Jio but is closing the gap gradually. Sustained price discipline sector-wide and success in migrating 2G/entry-level users into 4G/5G packs are critical to margin repair.

Debt & regulatory backdrop: Vi’s balance sheet remains stretched with government dues (AGR/spectrum) and high interest costs; reports through 2025 indicated ongoing dialogue with the government. Any material relief or tariff hikes across the sector would be upside catalysts; conversely, delays in funding can pressure market share.

Deep-Dive Narrative (1000+ words, single cohesive read)

Vodafone Idea’s Q2 FY2025-26 print lands at a delicate but constructive moment in its multi-year rebuild. The headline numbers tell a simple story: revenue grew, ARPU improved, and losses narrowed versus last year, even as the operator continues to lose low-value subscribers. Revenue from operations came in at ₹11,194.7 crore, up 2.4% YoY and 1.6% sequentially, illustrating that premiumization can offset modest base erosion when executed consistently. The ARPU of ₹180—up ~8.7% YoY—anchors that premiumization narrative; Vi is nudging customers toward higher allowances and better-featured plans, with incremental pricing power aided by sector tariff actions taken in the past year. The result is a consolidated net loss of ₹5,524.2 crore, a meaningful improvement on the ₹7,176 crore loss recorded a year ago, though still wider than profitability by a large margin. Scale matters in telecom, and Vi is demonstrating that improving the quality of scale (ARPU and 4G/5G mix) can partially offset quantity pressures (overall subs).

The subscriber mix underlines the shift. Vi ended Q2 with 196.7 million subscribers—lower than last year—but the 4G/5G cohort expanded to 127.8 million, up from ~125.9 million in Q2 FY25. This matters for two reasons. First, 4G/5G users consume more data and are more amenable to premium plans (international roaming, content bundles, ultrafast add-ons), lifting ARPU. Second, as Vi deploys 5G in high-device-density markets, the experience gap with rivals narrows for those premium customers, aiding retention even if overall gross additions remain subdued. The company’s own call commentary in August laid out the operational cadence: 5G live in 22 cities across 13 circles then, with a plan to cover all 17 priority circles by September 2025—a milestone industry trackers watched through the Delhi-NCR launch and further rollouts.

Against this network roadmap, management’s capex guidance of ₹50,000–₹55,000 crore over three years is pivotal. The capital is earmarked for: (i) densifying 4G to stabilize churn and improve coverage in the 17 priority circles that account for the bulk of Vi’s revenue; (ii) selective 5G capacity in metros and tier-one cities to lift experience and monetization; and (iii) enterprise/IoT and capacity adds to keep up with data growth. Funding the plan has involved equity (the 2024 FPO was the largest in India at ₹18,000 crore) and ongoing debt efforts, including short-term infrastructure borrowings in 2025. Execution risk is real—telecom capex cycles are lumpy, permitting/state dependencies exist, and vendor pre-payments compete with working capital—but the strategy is coherent: win back experience, lift ARPU, and then layer growth on a healthier base.

How does Q2 stack up operationally? The revenue print points to moderate growth despite pressure on the low end. ARPU uplift did the heavy lifting, aided by plan upgrades and rational pricing. EBITDA, as tracked by the street, likely improved modestly YoY (helped by revenue and cost controls) but remains constrained by network opex tied to 5G rollout and energy costs. While the company did not release a full EBITDA bridge in the public domain sources we cite here, multiple market reports around the result day allude to stable-to-slightly-better margins. The net loss improvement YoY shows operating leverage at work—though interest and depreciation still keep the bottom line deep in the red. The direction of travel, however, is better than a year ago.

Competitive landscape is the next layer. Airtel and Jio continue to out-invest and out-grow, with higher ARPU prints and stronger balance sheets. That said, the sector is increasingly ARPU-led, not just subscriber-led. If pricing remains disciplined and Vi’s rollout meaningfully upgrades experience in key markets, the company can stabilize share in its 17 focus circles while lifting ARPU further. The risk case is a slowdown in funding or rollout that allows rivals to open a wider experience gap, especially in the top-7 circles that generate about half of Vi’s revenue—something analysts have flagged through mid-2025.

Debt & regulation remain overhangs. AGR and spectrum obligations inflate interest costs and limit flexibility. Management has stated on investor interactions that dialogues with the government continue; any policy relief or structural tariff move across the industry would be the cleanest path to accelerating deleveraging. Until then, cash generation hinges on executing the capex plan efficiently, pushing premium packs, and improving 4G/5G penetration. The Times of India

Bottom line for Q2 FY26: Vi delivered a cleaner quarter—higher revenue, higher ARPU, and a smaller YoY loss—while pressing ahead with a focused rollout strategy. The Q1-to-Q2 progression also shows that ARPU gains can cushion sequential fluctuations in subs. For investors and sector watchers, the next checkpoints are: (1) evidence that the 17-circle rollout is materially improving network KPIs (speeds, call drops) and reducing churn; (2) ARPU trajectory holding above ₹180 with room for pricing uplift; and (3) funding cadence that supports the ₹50–55k crore three-year capex without unduly stressing the balance sheet. If these fall into place, Vi’s gradual repair story can sustain; if not, the risk is that market-share erosion in top circles offsets ARPU progress.

Notes on sources and dates

• Q2 FY26 numbers (revenue, ARPU, loss, subs) referenced from ET/Business Standard/Upstox/Mint coverage published on Nov 10, 2025 IST. mint+3Business Standard+3ET Now+3

• Q1 FY26 numbers (revenue, ARPU, loss) from Mint/ET on Aug 14, 2025, and subs/4G from Vi’s Q1 FY26 earnings call transcript. mint+2The Economic Times+2

• Q2 FY25 comparatives (revenue, ARPU, loss, subs) from Reuters/Mint/ET coverage from Nov 2024 and later roundups. Reuters+1

• Management guidance on capex (₹50–55k cr) and 17 circles from Financial Express, Telecom ET, Vi press materials, and call transcript. The Financial Express+2ETTelecom.com+2