A decisive quarter of network rollouts, rising data usage and a restructured AGR settlement have stabilised subscribers and materially improved Vodafone Idea’s balance sheet, setting the stage for a multi‑year capex push and margin recovery, said the management of the telecom operator in an earnings call.
The company is looking to sustain the upward momentum in ARPU through higher data usage, upgrade of feature phone base and migration to unlimited plans.
The aim is also to lift cash EBITDA margin to the mid-30s from the current mid-20s over the medium term if revenue and efficiency targets are met.
The appointment of Kumar Mangalam Birla as the non-executive chairman of its board and the infusion of ₹4,730 crore as capital by the Aditya Birla group, “reaffirm the strong and continued commitment of the promoter group to our long-term growth,” said CEO Abijit Kishore.
The reduction in AGR liability “meaningfully improves our balance sheet and provides a definitive conclusion to the AGR matter,” he said. Its AGR dues have been finalised at ₹64,046 crore as of December 31, 2025, a reduction from the earlier frozen figure of ₹87,695 crore.
“The revised liability and structured instalments produced a one‑time accounting benefit that materially improved reported profits for the year,” he said.
What turned things around
The company reported stabilised subscribers at about 192.8 million, with sequential improvement in February and March — the first sustained uptick since the merger. Kishore credited targeted 4G/5G investments and product differentiation for the turnaround, noting that “we are focusing on quality of customer acquisition rather than quantity — that is one of the reasons gross additions were reduced by design.” That deliberate pullback in acquisition intensity is intended to improve customer mix and reduce churn.
He also highlighted operational gains from a large network build — thousands of new broadband towers and expanded 4G coverage to roughly 86 per cent pan‑India, and 5G services now live in over 80 cities, across its 17 circles.
Looking ahead, Kishore reiterated a ₹45,000 crore capex plan over three years, funded through a mix of operating cash flow, debt facilities and promoter infusion. “We want to spend ₹45,000 crore of capex over the next three years and are confident of funding this through a mix of cash EBITDA, debt facilities and promoter infusion,” management said.
Vodafone Idea reported a net profit in the March quarter aided by a one-time gain, excluding which, it would have reported a smaller loss from year ago. Average revenue per user rose 2 per cent sequentially and 9 per cent on year to ₹190.