Vodafone Idea Posts ₹51,970 Crore Profit for Q4 on Reduction in Statutory Liabilities

Beleaguered telecom operator Vodafone Idea on Saturday posted a consolidated net profit of Rs 51,970 crore - its first ever in about six years, for the March quarter of FY2025-26, mainly due to relief in statutory liabilities, according to a company filing.

The company had posted a loss of Rs 7,167 crore in the same period a year ago.

Vodafone Idea (Vi) operational metrics, however, show a loss of around Rs 5,515 crore during the reported quarter and Rs 24,059 crore for the fiscal year 2026 before exceptional items comprising relief on adjusted gross revenue (AGR).

The Department of Telecom (DoT) on January 27 confirmed that the AGR (adjusted gross revenue) dues of Vodafone Idea (Vi) as of December 31, 2025, amount to Rs 87,695 crore. Thereafter, the DoT informed Vi on April 30 that the Committee formed for the purpose of reassessment finalised the AGR dues at Rs 64,046 crore for the FY 2006-07 to 2018-19 as on December 31, 2025.

"Consequently, in accordance with Ind AS 109, the financial liability of Rs 80,502 crore as at December 31, 2025, was derecognised and the revised financial liability of Rs 24,880 crore was recognised, which is the present value of future payments as stated above. The resulting difference of Rs 55,622 crore (including impact of reassessed amount) along with net impact of other related provisions has been credited to the statement of Profit and Loss," the filing said.

As of March 31, 2026, deferred payment obligation (including interest accrued but not due) on Vi stood at Rs 1,27,360 crore towards spectrum and Rs 25,254 crore towards AGR.

The instalments payable against these deferred payment obligations on Vi, as scheduled by March 2027 is Rs. 7,076 crore, the company filing said.

The consolidated revenue from operations grew by about 3 per cent to Rs 11,332 crore during the reported quarter from Rs 11,229 crore in the corresponding quarter of fiscal year 2025.

Vi, after years, recorded stabilisation in customer base with monthly subscriber addition moving northward since February.

The total subscriber base of the company stood at 19.28 crore at the reported quarter. Though average revenue per user (ARPU) if Vi increased to Rs 190 during the reported-- lowest among private operators, the growth was highest in the industry at 8.3 per cent on year-over-year basis driven by customer upgrades.

Vi capex for the quarter was Rs 2,294 crore and Rs 8,742 crore for the full fiscal year 2026.

Not just the quarter, the reduction in adjusted gross revenue liability made Vodafone Idea a profitable firm for the full fiscal.

The company posted an annual profit of Rs 34,552 crore in FY'26. It had posted a loss of Rs 27,384 crore in the same period a year ago.

The annual consolidated revenue from operations of Vodafone Idea grew by 3 per cent to Rs 44,782 crore from Rs 43,454 crore on a year-over-year basis.