Vodafone Idea Q2 FY26 Results: Revenue Grows, Loss Narrows & AGR Relief Fuels Turnaround Hopes

Vodafone Idea’s September 2025 quarter results signal cautious recovery for the struggling telecom operator. The company’s loss has narrowed, revenue has improved, and recent Supreme Court relief on AGR dues offers a potential lifeline. This analysis helps investors, financial analysts, and telecom watchers understand what Vi’s Q2 performance means for its survival and for the competitive Indian telecom market.

Table of Contents

1. Key Highlights at a Glance
2. Financial Performance Overview
3. Revenue Segments and Customer Metrics
4. AGR Dues Update and Supreme Court Relief
5. Balance Sheet and Debt Situation
6. Investor Takeaways: Positives and Risks
7. Conclusion: What Lies Ahead for Vodafone Idea
8. FAQs

Key Highlights at a Glance

• Q2 FY26 net loss narrows to ₹5,524 crore, the smallest in 19 quarters.

• Revenue up 2.4% year-on-year to ₹11,195 crore.

• ARPU improves to ₹180 amid continued tariff discipline.

• Supreme Court allows recalculation of AGR dues, providing major financial relief.

• Net debt remains high at over ₹2 lakh crore.

Financial Performance Overview

For the quarter ended September 2025, Vodafone Idea posted a net loss of ₹5,524 crore compared to ₹7,176 crore last year. Revenue grew 2.4% to ₹11,195 crore the company’s highest top-line figure in recent quarters. EBITDA stood at ₹4,685 crore, with stable margins near 41.9%.

Improved ARPU of ₹180, up 8.7% year-on-year, highlights the impact of premiumisation and selective tariff hikes. Still, high finance (₹4,784 crore) and depreciation (₹5,567 crore) costs kept the operator in a loss-making zone.

To understand how the market is reacting to the company’s quarterly performance, check the latest Vodafone Idea share price, valuation ratios, and stock chart trends on Ticker.

Revenue Segments and Customer Metrics

Vodafone Idea’s revenue continues to be driven by three segments:

• Mobility (Consumer Wireless): Voice and data services covering 91% of India’s population.

• Enterprise Services: Connectivity and solutions for businesses, SMEs, and governmental clients.

• New Revenue Streams: Digital content and OTT services such as Vi Movies & TV.

Total subscribers stood at 196.7 million, with 127.8 million active data users. The slight sequential uptick in 4G/5G customers suggests that Vi’s efforts in quality-of-service improvements are taking hold, albeit gradually.

AGR Dues Update and Supreme Court Relief

In a major development, the Supreme Court allowed the Department of Telecommunications to recalculate Vodafone Idea’s Adjusted Gross Revenue (AGR) dues up to FY17. This move could substantially reduce Vi’s headline liability of ₹83,400 crore.

Key implications:

• Reassessment offers scope to lower accumulated interest and penalties.

• Relief triggered a 10 percent surge in the company’s share price.

• Opens the door for potential fundraising and faster balance sheet repair.

Government officials are also exploring support measures such as extended payment timelines, reduced interest charges, or partial debt conversion into equity.

Balance Sheet and Debt Situation

Despite regulatory tailwinds, Vi’s capital structure remains stretched:

• Net Debt (Sept 2025): ₹2,02,951 crore

• Cash & Bank Balance: ₹3,080 crore

• Debt to Banks: ₹1,530 crore

The massive debt load limits Vi’s ability to accelerate 5G rollouts or network upgrades, keeping it behind Reliance Jio and Bharti Airtel in subscriber growth and service quality.

Investor Takeaways: Positives and Risks

Positives

• Loss reduction represents a gradual operational recovery.

• Tariff-induced ARPU improvement enhances margins.

• Supreme Court’s AGR verdict materially improves solvency outlook.

Risks

• Competitive churn continues, pressuring the active user base.

• Debt levels remain unsustainable without fresh equity or relief.

• Profitability unlikely before FY27 without tariff hikes or recapitalisation.

There’s a valuable YouTube video by CA Rachana Ranade that examines Vodafone Idea’s turnaround potential and the realities behind its current financial struggles — a must-watch before forming an investment view.

Conclusion: What Lies Ahead for Vodafone Idea

Vodafone Idea’s Q2 performance reflects signs of stabilisation. The combination of operational efficiency, improving ARPU, and potential AGR relief could grant the company crucial breathing space. However, without substantial new funding and consistent growth in premium users, Vi’s long-term survival remains uncertain.

For investors, Vodafone Idea remains a speculative turnaround story one hinging on successful execution, fresh capital infusion, and sustained regulatory support.

Want to see how Vi’s earlier quarter shaped its recent performance? Read the detailed breakdown of the Vodafone Idea Q1 FY26 Results to understand its sequential progress and financial trajectory.

FAQs

1. What is Vodafone Idea’s Q2 FY26 net loss?
The telecom operator reported a consolidated net loss of ₹5,524 crore for the September 2025 quarter.

2. How did Vodafone Idea’s revenue perform in Q2 FY26?
Revenue increased 2.4% year-on-year to ₹11,195 crore as ARPU rose due to tariff hikes and higher-value customer migration.

3. What was Vodafone Idea’s ARPU in Q2 FY26?
ARPU reached ₹180, marking an 8.7% improvement over the previous year.

4. What is the significance of the Supreme Court’s AGR relief for Vodafone Idea?
The relief allows recalculation of past dues, potentially reducing Vi’s financial liabilities and improving chances of fresh funding.

5. Is Vodafone Idea investing in 5G?
Network investments remain constrained by debt, but Vi continues limited 5G rollout trials and upgrades.

6. Should investors consider buying Vodafone Idea shares?
The stock remains speculative; improved sentiment depends on confirmed AGR relief and capital infusion.