Vi Q1 loss widens to ₹6,608 crore; Kishore to replace Moondra as CEO

Vodafone Idea’s (Vi’s) losses widened to ₹6,608 crore year-on-year (Y-o-Y) in the first quarter of 2025-26 (Q1FY26) but narrowed sequentially from ₹7,166 crore in Q4FY25. 

Revenues rose nearly 5 per cent Y-o-Y to ₹11,164 crore in Q1FY26, up from ₹10,764 crore in Q1FY25. However, sequentially, revenues fell slightly from ₹11,228 crore in Q4FY25. 

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose to ₹4,612 crore, up 9.7 per cent from ₹4,204 crore. However, the telco's finance cost rose to ₹5,928 crore, up 6.7 per cent from ₹5,519 crore in the same quarter of the previous financial year. 

The average revenue per user (Arpu), a key metric of profitability for a telecom services provider, rose to ₹165 in Q1FY26, up 13 per cent from ₹146 in Q1FY25, and from ₹164 in Q4FY25. The company attributed the increase to tariff revisions and customer upgrades. 

 

Despite the increase, Vi’s Arpu remains the lowest among its peers, with a large gap compared to Bharti Airtel that led the market with an Arpu of ₹250 as of the June quarter. 

Meanwhile, Vi appointed Abhijit Kishore as the next chief executive officer (CEO) for a period of three years in place of Akshaya Moondra, whose three-year term ends on August 18. Currently the chief operating officer (COO), Kishore has been with the company in various roles since 2015. 

In a statement to the BSE on Thursday, the Aditya Birla group company said it was in discussions with the department of telecommunications (DoT) for seeking relief on payment of adjusted gross revenue (AGR). The company is liable to pay AGR in equal monthly instalments (EMIs) beginning March-end 2026. 

Vi added that it was also in discussion with lenders for waivers. The telco’s outstanding debt from banks stands at ₹1,944.5 crore while deferred payment obligation towards spectrum bought in auctions payable over 20 years till FY44, as well as AGR dues that are to be paid till 2031 stood at ₹1.99 trillion. 

“The group’s ability to settle the above liabilities is dependent on further support from the DoT on the AGR matter, fundraise through equity and debt, and generation of cash flow from operations. Based on current efforts, the group believes that it would be able to get DoT support, successfully arrange funds, and generate cash flow from operations,” Vi said. 

The telco has to pay ₹16,428 crore as AGR instalment by March 2026, and ₹2,641 crore as deferred payment obligations for spectrum by June 2026. 

“We continue to invest in capex and to support our broader capex plans of ₹500-550 billion, we remain engaged with lenders to secure debt financing,” Moondra said. 

In the quarter ended March 2025, Vi’s Board approved raising ₹20,000 crore through another follow-on public offer (FPO), a private placement, or through any other permissible mode. The telco had issued India's largest FPO at ₹18,000 crore in April 2024, followed by preferential share issues to promoters and vendors Nokia and Ericsson. Vi’s promoters had also put in ₹4,000 crore, besides ₹1,980 crore raised from entities belonging to promoter Vodafone Group PLC through preferential issue in January 2025. 

Having launched 5G services in March, the telco said it was offering the high-speed data service in 22 cities across 13 circles while the plan is to expand its 5G footprint to additional key cities across all 17 circles by September 2025. Subscriber loss was limited to 0.5 million in the quarter, taking its customer base to 197.7 million, with 127.4 million as 4G and 5G customers. Vi added that its strategic partnership with AST SpaceMobile was aimed at bringing direct-to-device satellite broadband connectivity in the remote areas where there are no terrestrial networks.