This article first appeared on GuruFocus .
-
Revenue (Q4 FY26):INR11,332 crores, a 2.9% YOY growth.
-
Revenue (FY26):INR44,873 crores, a 3% increase from FY25.
-
EBITDA (Q4 FY26):INR4,889 crores, a 4.9% increase YOY.
-
EBITDA Margin (Q4 FY26):Improved by 80 basis points to 43.1%.
-
Cash EBITDA (FY26):INR9,217 crores, marginal improvement from FY25.
-
Net Profit (Q4 FY26):INR51,970 crores, influenced by exceptional items.
-
Net Profit (FY26):INR34,552 crores.
-
Customer ARPU (Q4 FY26):INR190, an 8.3% YOY growth.
-
4G/5G Subscriber Mix (Q4 FY26):66.9%, up from 63.8% in Q4 FY25.
-
Data Usage (Q4 FY26):Increased by over 30% to 83 petabytes per day.
-
Investment (Q4 FY26):INR2,294 crores.
-
Bank Debt (March 31, 2026):Reduced to INR726 crores from INR2,326 crores.
-
Free Cash Bank Balance (March 31, 2026):INR3,715 crores.
-
AGR Dues:Finalized at INR64,046 crores, reduced from INR87,695 crores.
-
Warning! GuruFocus has detected 3 Warning Signs with BOM:532822.
-
Is BOM:532822 fairly valued? Test your thesis with our free DCF calculator.
Release Date: May 18, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Vodafone Idea Ltd ( BOM:532822 ) reported a year-on-year revenue growth of 2.9% for Q4 FY26 and 3% for the full year, indicating a positive trend in financial performance.
-
The company's AGR dues were reduced significantly from INR87,695 crores to INR64,046 crores, providing long-term clarity and improving the balance sheet.
-
Vodafone Idea Ltd ( BOM:532822 ) achieved an 8.3% year-on-year growth in customer ARPU, driven by premiumization and an improved 4G/5G subscriber mix.
-
The company expanded its 5G services to over 80 cities, demonstrating a commitment to enhancing network experience and coverage.
-
Vodafone Idea Ltd ( BOM:532822 ) received a credit rating upgrade from ICRA to BBB with a positive outlook, reflecting improved financial stability and lender confidence.
Negative Points
-
Despite improvements, Vodafone Idea Ltd ( BOM:532822 ) still faces high churn rates compared to industry peers, indicating challenges in customer retention.
-
The company's cash EBITDA showed only marginal improvement due to significant site rollouts, highlighting ongoing cost management challenges.
-
Vodafone Idea Ltd ( BOM:532822 ) continues to have a lower VLR subscriber percentage compared to competitors, suggesting issues with network experience and customer engagement.
-
The company faces significant future spectrum payouts, raising concerns about financial management and funding strategies beyond FY27.
-
Vodafone Idea Ltd ( BOM:532822 ) remains under pressure to bridge the ARPU gap with competitors, requiring continued efforts in premiumization and customer upgrades.
Q & A Highlights
Q: What is driving the strong ARPU growth despite only a modest increase in 4G and 5G customers? A: Abhijit Kishore, CEO: The ARPU growth is driven by improved customer engagement and increased data consumption, which grew over 30%. The introduction of the "non-stop hero" proposition offering unlimited data has also contributed significantly, with a 25% sequential growth in uptake. These factors, combined with network investments and expanded coverage, are driving ARPU growth.
Q: How is Vodafone Idea planning to manage subscriber growth, especially in areas with new network additions? A: Abhijit Kishore, CEO: The company has invested INR16,000 crore over the last six quarters, focusing on circles with high customer potential like Maharashtra and Gujarat. This has led to improved customer acquisition, quality, and retention. The strategy involves expanding network coverage and capacity, which is expected to drive subscriber growth.
Q: What are the plans for debt fundraising and how will it impact future operations? A: Abhijit Kishore, CEO: Vodafone Idea plans to raise INR25,000 crore in funded facilities and INR10,000 crore in non-funded facilities, led by an SBI consortium. This funding is crucial for executing the INR45,000 crore CapEx plan over the next three years, ensuring network expansion and operational improvements.
Q: How does Vodafone Idea plan to address the gap in EBITDA margins compared to peers? A: Tejas Mehta, CFO: The company aims to significantly increase its EBITDA margin from the current 20.5% to over 35% in the coming years. This will be achieved through revenue growth, cost management, and leveraging customer additions and ARPU improvements. The focus will be on reducing churn and optimizing network costs.
Q: What is the strategy for managing spectrum payouts and financial obligations in the coming years? A: Tejas Mehta, CFO: Vodafone Idea plans to manage its financial obligations through a combination of cash EBITDA growth, debt facilities, and promoter equity infusion. The company is confident in its ability to meet spectrum payouts and other financial commitments, supported by a robust cash flow strategy and ongoing operational improvements.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
