Vodafone Idea Q1 Loss Narrows to Rs 3,754 Crore

New Delhi: Debt-ridden telecom firm Vodafone Idea on Monday reported a narrowing of loss to Rs 3,754 crore in the first quarter of the current fiscal mainly on account of relaxation given by the government on dues and a notional gain in price of shares earmarked for it by a promoter group.

The company had posted a net loss of Rs 6,611 crore in the same period a year ago, according to an exchange filing by the telecom company.

The finance cost of Vodafone Idea (Vi) declined by 13 per cent to Rs 5,120 crore during the reporting period from Rs 5,893 crore in the June quarter of last year.

Vodafone Idea under a pact with one of its promoters, Vodafone Group, qualified to get around Rs 5,836 crore as part of a liability claim pact between the two companies.

Vodafone Group has also set aside its 328 crore shares held in Vi for the company’s benefit. The value of those shares stood at Rs 4,435 crore (arrived basis closing market price adjusted for transaction and other incidental cost) at the end of June 2026 quarter which resulted in gain of Rs 1,816 crore for Vi for the reported quarter. The gain in share price as an exceptional item was instrumental in narrowing the company’s loss.

Revenue from operations grew 6 per cent year-on-year to Rs 11,689 crore during the quarter under review from Rs 11,023 crore in the same period of FY26.

The subscriber base of the company during the June quarter declined by around 2 per cent to 19.31 crore from 19.77 crore in the same quarter a year ago.

However, the company posted a 10.2 per cent rise in the customer ARPU (average revenue per user) to Rs 195 in Q1 FY27, compared to Rs 177 in Q1 FY26. The overall subscriber base was up compared to the March 2026 quarter.

The company’s 4G and 5G subscriber base grew by about 2 per cent to 13 crore from 12.74 crore on YoY basis during the period under review.

Vi recorded an increase in average date usage by 4G and 5G subscribers to 21.7 GB in June 2026 quarter from 17.3 GB in the same period a year ago.

Vi blended ARPU, comprising revenue from all mobile connections including machine-to-machine sim, grew by 7.2 per cent to Rs 177 from Rs 165 on YoY basis.

The subscriber gain from the company during the reported quarter was the outcome of improvement in the company’s mobile network.

Vi said that the company has already placed orders worth Rs 9,000 crore out of three-year capex guidance of Rs 45,000 crore. The company’s capex for the quarter stood at Rs 1,930 crore.

The company during the reported quarter secured funding of Rs 6,400 crore, including warrants, fund and non-fund based facilities.

Vi statutory payment liabilities stood at Rs 1.56 lakh crore as on June 30, 2026. The company has to pay Rs 9,259 crore to the Department of Telecom by June 2027 as part of its payment obligation.

Vi’s debt from banks stood at Rs 211 crore during the reported quarter.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)