Vodafone Idea (IDEA) Q3 25/26 earnings summary

Executive summary

• Leadership announced a strategic reset with aggressive investment, network expansion, and operational turnaround, supported by a three-year plan targeting sustained customer addition, double-digit revenue growth, and tripling EBITDA.

• 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 and cost control.

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

• AGR liability was frozen at ₹87,695 Cr, with a new long-term payment plan and reassessment process initiated by DoT.

Financial highlights

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

• Cleared ₹36,500 Cr in bank debt over six years from internal accruals.

• Promoters infused ₹27,000 Cr post-merger; FPO raised additional funds.

• CapEx for Q3FY26 was ₹2,252 Cr; average quarterly CapEx of ₹400 Cr since Q1 FY24, with ₹16,000 Cr invested over seven quarters.

• Current EBITDA at ₹9,500 Cr, targeting ₹28,000–29,000 Cr in three years; Q3FY26 EBITDA was ₹4,816 Cr with a margin of 42.5%.

Outlook and guidance

• Committed to ₹45,000 Cr CapEx over three years, focusing on network parity and 5G rollout in all urban markets.

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

• Double-digit revenue CAGR and 3x EBITDA targeted, with 60% growth from subscriber additions and 40% from ARPU uplift.

• No immediate equity infusion planned; funding needs covered by debt and internal accruals.

• Spectrum liabilities of ₹49,000 Cr due over next three years, with total spectrum payments of ₹120,000 Cr through 2044.