Vodafone Idea Narrows Q3 FY26 Loss as ARPU Rises on Customer Upgrades

Net Loss Shrinks Year on Year in December Quarter​

Debt-laden telecom operator Vodafone Idea reported a narrower consolidated net loss of ₹5,286 crore for the third quarter ended December 2025, supported by higher customer upgrades and improved average revenue per user.

The company had posted a net loss of ₹6,609 crore in the same quarter last year, marking a year on year improvement in financial performance.

Subscriber Base Declines, Premium Users Increase​

Vodafone Idea’s total subscriber base declined by 3.4 percent year on year to 19.29 crore from 19.98 crore. However, the company recorded growth in higher value segments.

Postpaid subscribers rose 14.2 percent to 2.88 crore from 2.52 crore a year ago. The 4G and 5G subscriber base also increased to 12.85 crore from 12.6 crore in the corresponding quarter last year, indicating continued migration toward advanced data services.

ARPU Improves Despite Flat Revenue​

Average revenue per user rose 7.3 percent year on year to ₹186 during the quarter, compared with ₹173 in the December 2024 quarter. The improvement was primarily driven by customer upgrades to higher data plans.

Consolidated revenue from operations remained largely flat at ₹11,323 crore in the December quarter, compared with ₹11,117 crore in the same period a year earlier.

Government Relief and Fundraising Support Capex Plans​

During the quarter, the company received government relief that led to the freezing of its adjusted gross revenue liability at ₹87,695 crore, with a reassessment planned at a later stage.

Vodafone Idea also raised ₹3,300 crore through non convertible debentures via a subsidiary and plans to deploy the funds toward capital expenditure. Capital spending stood at ₹2,252 crore for the quarter and ₹6,448 crore for the nine months ended December 2025.

Management Commentary Highlights Inflection Point​

Commenting on the developments, Abhijit Kishore, CEO of Vodafone Idea, said the quarter marked an important inflection point with positive resolution of key legacy issues. He added that the company was grateful for the long term solution provided on the AGR matter and highlighted the successful ₹3,300 crore NCD raise despite earlier uncertainties.

Data Usage and Financial Position​

Average data usage per user increased to 19.2 GB during the quarter from 15.16 GB in the December 2024 period, reflecting higher engagement on the network.

As of December 2025, the company’s total debt stood at ₹2.09 lakh crore. This included ₹4,424 crore of bank debt, ₹1.24 lakh crore of deferred spectrum payment obligations, and ₹80,502 crore toward adjusted gross revenue dues.

For the nine months ended December 2025, the group incurred a loss of ₹17,418 crore. Net worth remained negative at ₹87,744 crore, underlining the ongoing financial stress despite recent operational improvements.