Vodafone Idea (IDEA) investor relations material

Executive summary

• Leadership announced a strategic reset post-AGR resolution, focusing on aggressive investment, network expansion, and operational turnaround over three years.

• Three key goals: sustained customer addition, double-digit revenue growth, and tripling EBITDA in three years, with INR 45,000 crore CapEx commitment.

• Revenue for Q3FY26 was ₹11,323 Cr, up 1.9% year-over-year, with ARPU rising 7.3% to ₹186 and 4G/5G subscribers reaching 128.5 million.

• Net loss for Q3FY26 narrowed to ₹5,286 Cr from ₹6,609 Cr in Q3FY25, reflecting operational improvements.

• Promoters reaffirmed their commitment, with recent and potential future support if required.

Financial highlights

• Raised INR 3,300 crore via NCDs despite AGR uncertainty; promoters infused INR 27,000 crore post-merger.

• Cleared INR 36,500 crore of bank debt over six years from internal accruals.

• Invested INR 16,000 crore in network over seven quarters, increasing coverage to 86% and launching 5G in 43 cities.

• Reported EBITDA for Q3FY26 was ₹4,816 Cr, with a margin of 42.5%; cash EBITDA (pre-IndAS 116) was ₹2,358 Cr.

• Capex for Q3FY26 was ₹2,252 Cr; cash and bank balance at quarter-end was ₹6,963 Cr.

Outlook and guidance

• INR 45,000 crore CapEx over three years, focused on network expansion, 5G rollout, and service differentiation.

• CapEx to be front-loaded in the first two years for faster returns.

• Confident of generating sufficient cash flow to meet obligations over the next 12 months, supported by AGR payment clarity and ongoing debt discussions.

• Planned investments to increase 4G coverage in 17 circles to over 95% and further expand 5G rollout.

• No immediate equity infusion planned; funding through INR 25,000 crore bank debt, INR 10,000 crore non-funded facility, and internal accruals.