Vodafone Idea (IDEA) Q3 25/26 earnings summary

Executive summary

• Leadership outlined a reset strategy post-AGR resolution, focusing on customer addition, double-digit revenue growth, and tripling EBITDA over three years.

• 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 the quarter narrowed to ₹5,286 Cr from ₹6,609 Cr in Q3FY25, reflecting operational improvements and cost control.

• INR 45,000 crore CapEx planned over three years, with aggressive network expansion in 17 priority markets and 5G rollout in all urban centers.

• Promoters reaffirmed commitment, with recent equity infusions and willingness to support if needed.

Financial highlights

• Raised INR 3,300 crore via NCDs despite AGR uncertainty; promoters extended contingent liability support.

• EBITDA for last year at INR 9,200 crore; Q3FY26 EBITDA was ₹4,816 Cr with a margin of 42.5%.

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

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

• Net loss for the nine months ended December 31, 2025, was ₹17,418 Cr; negative net worth stood at ₹87,744 Cr.

Outlook and guidance

• Targeting sustained customer addition, double-digit revenue CAGR, and 3x EBITDA in three years.

• CapEx of INR 45,000 crore to be front-loaded in first two years for rapid network expansion.

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

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

• Spectrum liabilities of INR 49,000 crore over next three years, with total spectrum payments of INR 120,000 crore over 20 years.