Vodafone Idea's Q3 FY26 results: Net loss narrows to ₹5,286 crore

Reassessment of AGR begins, No 3 carrier confident of servicing obligations

Vodafone Idea (Vi) narrowed its consolidated net loss to ₹5,286 crore in the third quarter (October-December/Q3) of 2025-26 (FY26), from ₹6,609 crore a year earlier (Q3 of 2024-25/FY25). Revenue rose 1.85 per cent year-on-year to ₹11,323 crore, up from ₹11,117 crore in Q3FY25.

 

Earnings before interest, tax, depreciation, and amortisation increased to ₹4,816 crore, from ₹4,712 crore. Finance costs fell to ₹5,632 crore, down from ₹5,690 crore in the same quarter of the previous financial year.

 

The company said on Monday that it was confident of generating sufficient cash flow to meet obligations over the next 12 months, following the Indian government’s 10-year breather on adjusted gross revenue (AGR) dues.

 

“Based on recent developments with respect to the AGR matter, the group is confident of generating sufficient cash flow from operations to meet its obligations, including lenders, spectrum, and AGR dues payable over the next 12 months as and when they fall due,” the company said in its quarterly report for Q3FY26. It added that it was in talks with banks to raise additional funds.

 

Abhijit Kishore, chief executive officer of Vi, said, “This quarter marked an important inflexion point for the company, with positive resolution of key legacy issues. We are thankful to the government for offering a definitive, long-term, and conclusive solution to the AGR matter. We also concluded the settlement of the contingent liability adjustment mechanism receivable of ₹6,394 crore with Vodafone Group. One of the key milestones for the quarter was the successful non-convertible debenture (NCD) raise of ₹3,300 crore, despite an AGR overhang — a clear reflection of lender confidence in our ability to improve business performance.”  The company's assets as of December, 2025, include receivables from Vodafone India promoters under the March 20, 2017 Implementation Agreement, which mandate settlement of the amount, with promoters releasing Rs 2,307 crore over the next 12 months. Part of the settlement is backed by Vodafone Group entities earmarking 328 crore company equity shares for five years, which will flow to the company.

 

The company added that reassessment of AGR dues had begun. Dues have been frozen at ₹87,695 crore as of December 31, 2025. It will pay ₹124 crore annually for the next six years, starting March 2026 and ₹100 crore annually for the following four years. The balance of the reassessed dues will be paid in six equal instalments from 2035-36 to 2040-41. The arrangement effectively gives the company a 10-year breather on actual AGR payments.

 

“Collectively, these developments have strengthened the trajectory of our debt discussions, which will enable us to execute our larger capital expenditure (capex) plan to strengthen the network and further elevate the customer experience. On the operational side, our market initiatives translated into deeper customer engagement, with average revenue per user (Arpu) and data consumption improving sequentially,” Kishore added.

 

Arpu, a key monthly profitability indicator for telecommunications service providers, rose to ₹186 in Q3FY26, up from ₹173 in Q3FY25 and ₹180 in the second quarter (July-September/Q2) of FY26, supported by customer upgrades.

 

Despite the increase, Vi’s Arpu remains the lowest among peers, with a large gap compared with Bharti Airtel, which leads the market with an Arpu of ₹256 as of September, and Reliance Jio’s Arpu of ₹213.7 in Q3. Airtel will declare results next week.

 

Vi’s 4G and 5G subscriber base grew to 128.5 million in Q3FY26 from 126 million in Q3FY25. The total customer base shrank to 192.9 million from 199.8 million in the same period, indicating subscriber losses.

 

The company’s bank debt fell to ₹1,126 crore as of December 2025, from ₹1,542 crore in September, with a cash and bank balance of ₹6,963 crore, factoring in NCDs raised. Capex during the quarter was higher sequentially at ₹2,252 crore.

 

Accounting for the impact of the new labour codes, Vi said the changes increased gratuity and leave liability arising from past service cost by ₹146 crore.