Vodafone Idea's Q1 Net Loss Widens to ₹6,608 crore; Abhijit Kishore Appointed New CEO

Vodafone Idea reported a net loss of ₹6,608 crore for Q1 FY26, 2.74% higher than the ₹6,432 crore loss in Q1 FY25. However, the loss narrowed by 7.79% sequentially from ₹7,166 crore in Q4 FY25.

The telecom firm’s revenue for the quarter was ₹11,020 crore, up 4.9% YoY, while EBITDA stood at ₹4,610 crore. Depreciation and amortisation expenses were ₹5,470 crore, and net finance costs were ₹5,750 crore. Capex for the quarter was ₹2,440 crore. As of 30 June 2025, bank debt stood at ₹1,930 crore, and cash balance was ₹6,830 crore.

Vi’s ARPU for the quarter rose to ₹177, up 15% YoY from ₹154 in Q1 FY25. The 4G/5G subscriber base grew to 127.4 million from 126.7 million a year earlier. 4G population coverage reached around 84%, while 4G data capacity rose by 36% and speeds increased by 24% compared to March 2024.

“This has been a decisive turnaround quarter. The investments made over the past three quarters to expand our 4G coverage have started yielding results, as reflected in the 90% lower subscriber loss compared to Q2 and Q3 of last financial year — the lowest subscriber decline since the merger,” said outgoing CEO Akshaya Moondra.

He added that Vi’s 5G services are now operational in 22 cities across 13 circles. During the quarter, Vodafone Idea added over 4,800 new 4G towers, taking its total broadband sites to about 5.16 lakh. The network now includes around 13,100 Massive MIMO sites and over 12,300 small cells.

The telco also strengthened its sub-GHz 900 MHz spectrum in 16 circles, deploying about 9,200 sites and adding 8,800 more on the 1800 MHz and 2100 MHz bands to improve data speeds and indoor coverage on Vi GIGAnet. These upgrades and customer initiatives reduced subscriber losses to just 0.5 million — nearly 90% lower than the roughly 5 million losses in Q2 and Q3 last year.

“Data consumption has hit a record high, driven by the success of our SuperHero and Non-Stop SuperHero plans. With a solid foundation in place, we are well positioned to seize emerging growth opportunities in the industry. We continue to invest in capex and, to support our broader capex plans of ₹50,000–₹55,000 crore, we remain engaged with lenders to secure debt financing,” he added.

Abhijit Kishore Appointed New CEO

Vodafone Idea also announced changes in its top leadership. Current CEO Akshaya Moondra, appointed in August 2022 for a three-year term, will step down on August 18 upon completion of his tenure. The Board has appointed current COO Abhijit Kishore as the new CEO and Key Managerial Personnel for a three-year term starting August 19.

Kishore, with over 27 years in the Indian telecom industry, has been with Vodafone Idea since 2015 in various senior roles, including leading the enterprise business and serving as circle head in Gujarat and Kerala. He is an alumnus of Delhi University and FORE School of Management, with leadership training from IIM Ahmedabad and London Business School.

Update on AGR Dues

A key challenge for the new CEO will be addressing Vi’s large Adjusted Gross Revenue (AGR) dues to the government — a major sticking point in lender negotiations.

As of 30 June 2025, Vi’s deferred payment obligations towards spectrum (payable till FY44) and AGR dues (till FY21) totalled ₹1,99,140 crore. AGR instalments due in FY26 amount to ₹16,428 crore, while spectrum-related instalments payable by June 2026 are ₹2,641 crore. Bank debt due by June 2026 stands at ₹1,715 crore, excluding interest, and ₹211 crore has been reclassified as short-term borrowings due to covenant breaches.

“The Group’s ability to settle the above liabilities is dependent on further support from the DoT on the AGR matter, fund-raising through equity and debt, and cash flow generation from operations. Based on current efforts, the Group believes it will be able to get DoT support, successfully arrange funds, and generate cash from operations. Accordingly, these consolidated financial results have been prepared on a going concern basis,” Vi said, adding that it “continues to be in discussion with DoT regarding this matter.”