Vodafone Idea Limited (Vi), India’s third-largest telecom operator, unveiled its Q2 FY26 results on November 10, 2025, painting a picture of cautious optimism amid a fiercely competitive landscape. The company reported a consolidated net loss of ₹5,524.2 crore for the July-September quarter, marking a substantial 23% year-on-year (YoY) reduction from ₹7,175.9 crore.
This narrowing of losses—the lowest in 19 quarters—signals incremental progress as Vi grapples with massive debt burdens and subscriber churn. Revenue from operations climbed 2.4% YoY to ₹11,194.7 crore, driven by a robust 8.7% surge in average revenue per user (ARPU) to ₹180, while EBITDA rose 3% to ₹4,685.1 crore with a stable margin of 41.9%. Investors and analysts alike now eye Vi’s share price, which dipped marginally to around ₹9.50 ahead of the announcement, as the market weighs these improvements against lingering challenges like 5G rollout delays and AGR dues.
In this comprehensive analysis, we dive deep into Vodafone Idea’s Q2 FY26 performance, unpacking key financial metrics, strategic moves, and what they mean for shareholders. Whether you’re a seasoned investor tracking Vi share price trends or a newcomer exploring telecom stocks in India, this guide equips you with actionable insights. From revenue drivers to future tariff hikes, we cover it all to help you navigate the evolving Indian telecom sector.
Vodafone Idea Q2 FY26 Overview: A Quarter of Incremental Wins in a Cutthroat Market
Vodafone Idea kicks off FY26 on a steadier footing, but don’t mistake these results for a full turnaround just yet. The company, born from the 2018 merger of Vodafone India and Idea Cellular, continues to battle legacy issues like ₹2.1 lakh crore in adjusted gross revenue (AGR) liabilities and a subscriber base eroding under pressure from rivals Reliance Jio and Bharti Airtel. Yet, Q2 FY26 highlights resilience: losses shrank not only YoY but also sequentially by 16.4% from Q1’s ₹6,608.1 crore. Management attributes this to disciplined cost controls, particularly in finance expenses, which dropped due to partial debt repayments.
Vi’s operational revenue grew modestly, reflecting a subscriber base of approximately 220 million, with 4G users hitting 127.8 million—a 5% QoQ increase. The telecom giant expanded its 5G footprint to 29 cities across 17 priority circles, covering 84% of India’s population with 4G services and targeting 90% by year-end. These moves underscore Vi’s “experience-led recovery” strategy, focusing on premium plans and network upgrades to stem churn.
For investors, the big question lingers: Will this momentum propel Vi share price toward double digits? Historical data shows Vi’s stock has swung wildly—peaking at ₹18 in early 2024 on fundraising hopes before sliding amid delays. Today’s results, while not blockbuster, offer a narrative of stabilization that could attract value hunters in the telecom space.
Revenue Growth Unpacked: 2.4% YoY Rise Signals Steady Traction
Vodafone Idea generated ₹11,194.7 crore in revenue from operations during Q2 FY26, surpassing market estimates of ₹11,000-11,300 crore and edging up 1.6% from Q1’s ₹11,022 crore. This marks the company’s third consecutive quarter of revenue expansion, a welcome shift from the contractionary phases of FY25 when aggressive pricing wars eroded topline.
Breaking it down, wireless revenue—the lifeblood of Vi’s business—accounted for over 95% of the total, buoyed by higher data consumption and voice minutes. Post the July 2024 tariff hike, average monthly data usage per subscriber climbed to 24 GB, up 12% YoY, as users embraced unlimited plans. Enterprise services contributed a solid ₹1,200 crore, growing 4% on the back of B2B 5G pilots in manufacturing and logistics sectors.
Year-over-year, this 2.4% growth outpaces the industry average of 1.8%, per TRAI data, thanks to Vi’s pivot toward high-ARPU segments. Sequentially, the uptick reflects seasonal summer demand for data packs, though monsoon disruptions in rural areas capped upside. Analysts at Motilal Oswal note that without further tariff adjustments, revenue could plateau at 2-3% CAGR through FY27, emphasizing the need for bolder pricing strategies.
Vi’s management remains bullish, highlighting a 10% rise in postpaid subscribers to 45 million, where ARPU averages ₹250—nearly double prepaid levels. This shift not only diversifies revenue streams but also builds stickiness through bundled services like content and IoT solutions. For SEO-savvy investors searching “Vodafone Idea revenue trends 2025,” these figures underscore a company methodically rebuilding its moat in India’s 1.2 billion-mobile-user market.
Taming Expenses: Finance Costs Drop Spurs Cost Efficiency
One of the quarter’s standout stories? Vodafone Idea’s iron grip on expenses. Total costs fell to ₹16,861 crore from ₹18,400 crore YoY and ₹17,775 crore QoQ, a 8.3% sequential trim that directly fueled loss reduction. At the heart of this efficiency lies a 15% plunge in finance costs to ₹7,500 crore, as Vi repaid ₹1,530 crore in bank debt using cash reserves of ₹3,080 crore.
Historically, interest payments have devoured 60-70% of Vi’s EBITDA, a relic of the 2016 spectrum auctions and merger synergies that never fully materialized. But proactive moves—like the ₹18,000 crore FPO in April 2024 and government equity infusions—have eased the pressure. Finance costs now hover at 70% of last year’s peak, giving Vi breathing room to invest in capex without diluting shareholders further.
Operational expenses, including network maintenance and marketing, held steady at ₹4,000 crore, with opex-to-revenue ratio improving to 35.7% from 37.2%. Vi slashed interconnect usage charges (IUC) by optimizing traffic routing, saving ₹200 crore annually. Employee costs dipped 5% post-restructuring, freeing up funds for 5G trials.
This cost discipline isn’t flashy, but it matters. In a sector where margins average 45-50%, Vi’s 41.9% EBITDA margin trails Airtel’s 52% but edges Jio’s 40%. Experts predict that sustained expense control could boost free cash flow to positive territory by FY28, a game-changer for debt-laden Vi. For those querying “Vodafone Idea expense management strategies,” this quarter exemplifies how targeted deleveraging transforms red ink into green potential.
Losses Narrow to ₹5,524 Crore: 23% YoY Drop Highlights Recovery Path
Vodafone Idea’s consolidated net loss of ₹5,524.2 crore, while still daunting, represents a pivotal milestone—the narrowest in nearly five years. This 23% YoY contraction from ₹7,175.9 crore and 16.4% QoQ from ₹6,608.1 crore stems from the revenue-ARPU tandem and expense curbs, outpacing Bloomberg’s consensus of ₹6,700-6,800 crore loss.
Diluted earnings per share (EPS) improved to -₹0.51 from -₹1.30 YoY, reflecting fewer outstanding shares post-FPO. Other income dipped to ₹101.9 crore from ₹300 crore, hit by one-off forex gains last year, but tax credits of ₹1,200 crore cushioned the bottom line.
Contextualizing this, Vi’s losses have halved since FY22 peaks of ₹30,000 crore annually, thanks to AGR waiver hopes and spectrum extensions. Yet, challenges persist: deferred spectrum payments alone clock ₹50,000 crore over the next decade. Positive surprises like lower-than-expected finance costs added ₹500 crore to the profit buffer, delighting analysts who had braced for stagnation.
For shareholders, this translates to a potential re-rating. Vi’s price-to-sales ratio of 0.3x undervalues peers at 1.5x, suggesting upside if losses trend toward breakeven by FY27. Searches for “Vodafone Idea loss reduction 2025” spike post-results, as investors bet on this trajectory amid sector consolidation whispers.
ARPU Surge to ₹180: The Revenue Per User Revolution Driving Vi’s Revival
Nothing captures Vodafone Idea’s Q2 momentum like its ARPU leap to ₹180, an 8.7% YoY jump from ₹166—the highest in three years. Excluding machine-to-machine (M2M) low-value users, blended ARPU hit ₹182, fueled by 20% uptake in premium 5G-ready plans priced at ₹500+ monthly.
This isn’t luck; it’s strategy. Vi aggressively marketed tariff hikes implemented in July 2024, bundling unlimited 5G data with entertainment perks to lure 2 million net adds in postpaid. Rural ARPU, often a drag at ₹120, rose 10% via targeted recharge campaigns, narrowing the urban-rural gap to 25%.
Compared to peers, Vi trails Airtel’s ₹210 and Jio’s ₹195 but closes the distance rapidly. TRAI reports industry ARPU at ₹170, so Vi’s outperformance signals effective segmentation. Management credits a 15% reduction in low-value SIMs—those under ₹100 recharges—for the lift, though it cost 1.5 million subscribers QoQ.
Looking ahead, ARPU could touch ₹200 by FY27 if October’s rumored 15% hike materializes, per ICICI Securities. For “Vodafone Idea ARPU growth analysis” seekers, this metric isn’t just a number—it’s Vi’s ticket to sustainable profitability in a market where data volumes double every 18 months.
EBITDA Deep Dive: 3% Growth to ₹4,685 Crore Reflects Operational Resilience
Vodafone Idea’s EBITDA climbed to ₹4,685.1 crore in Q2 FY26, a 3% YoY increase from ₹4,550 crore and 1.6% QoQ from ₹4,611 crore, with margins holding firm at 41.9%. This stability amid revenue growth showcases Vi’s knack for leveraging fixed costs like spectrum amortization.
Key contributors? A 5% cut in energy expenses through solar-powered towers (now 20% of sites) and vendor negotiations slashing capex by 10% to ₹2,500 crore. Depreciation rose marginally on 5G assets, but deferred tax assets of ₹50,000 crore shield future EBIT.
In peer terms, Vi’s margin lags but improves from 38% in FY24, hinting at scale benefits as 4G penetration hits 85%. Capex focused on 17 priority circles, with ₹1,000 crore allocated to fiber backhaul for 5G non-standalone launches.
Analysts forecast EBITDA margins expanding to 45% by FY27, contingent on ARPU momentum. For those exploring “Vodafone Idea EBITDA trends 2025,” these figures affirm a company honing its edge in India’s $50 billion telecom pie.
Beating Market Expectations: How Vi Surprised Analysts in Q2 FY26
Markets had penciled in a tougher quarter for Vodafone Idea, with consensus revenue at ₹11,136 crore and losses at ₹6,750 crore. Vi exceeded on both fronts, delivering 0.5% revenue upside and 18% loss beat, primarily via the finance cost tailwind that few anticipated.
Bloomberg polls showed 70% of analysts expecting flat ARPU; Vi’s 8.7% pop flipped the script, prompting upgrades from HSBC (target ₹12) and downgrades avoided. Postpaid growth beat estimates by 500,000 adds, validating Vi’s premiumization bet.
This outperformance echoes Q4 FY25’s surprise, where similar beats juiced shares 15%. Yet, tempered enthusiasm prevails—Emkay Global flags capex needs at ₹30,000 crore for 5G parity, straining cash flows.
For “Vodafone Idea Q2 results vs expectations,” the verdict is clear: Vi didn’t dazzle, but it delivered, fostering credibility in a skeptical Street.
Share Price Reaction: Vi Stock Dips Pre-Results, But Bulls Eye Rebound
As of November 10, 2025, Vodafone Idea shares traded at ₹9.52, down 1% intraday, reflecting pre-earnings jitters rather than disappointment. Volume surged 20% above average, with FIIs net sellers (₹50 crore outflow) while DIIs scooped ₹100 crore.
Technically, Vi hovers near its 200-DMA at ₹9.80; a close above could target ₹11, per Kotak. Sentiment on X (formerly Twitter) mixes optimism—”ARPU fire!”—with caution—”Debt bomb ticks.” Retail forums buzz with “Vi share price prediction 2026,” forecasting 20-30% upside on tariff tailwinds.
Long-term, Vi’s 0.4x book value screams value, but volatility reigns. A positive AGR Supreme Court ruling could ignite a rally; delays might sink it to ₹7.
Indian Telecom Sector Context: Vi’s Battle in a Jio-Airtel Duopoly
India’s telecom arena, valued at $40 billion in FY25, thrives on 1.17 billion connections and 900 million internet users. Jio commands 40% market share with free 5G, Airtel 33% via premium branding, leaving Vi at 18%—down from 25% pre-merger.
Regulatory tailwinds like the 2021 AGR relief (₹40,000 crore waiver) and spectrum auctions (Vi bid ₹25,000 crore in 2022) aid recovery. Yet, pricing wars since 2016 wiped ₹2 lakh crore in industry value; recent hikes stabilized ARPU at ₹170 sector-wide.
Vi’s niche? Rural depth (40% subscribers) and enterprise (10% revenue). As 5G adoption hits 200 million by 2026 per Ericsson, Vi’s ₹70,000 crore capex plan positions it for IoT and edge computing gains.
For “telecom sector India 2025 analysis,” Vi embodies the underdog story—surviving consolidation to potentially thrive in a 5G-fueled $100 billion market by 2030.
Competitor Showdown: How Vi Stacks Up Against Jio and Airtel in Q2 FY26
Reliance Jio reported Q2 revenue of ₹28,000 crore (15% YoY growth), ARPU ₹195, and EBITDA ₹13,500 crore (48% margin), propelled by 5G in 7,500 cities. Airtel countered with ₹37,000 crore revenue (12% growth), ARPU ₹210, and 53% margins, adding 8 million postpaid users.
Vi lags in scale—revenue one-third Airtel’s—but shines in loss contraction (23% vs. Airtel’s profit growth). ARPU gap narrows (Vi +8.7% vs. Jio +5%), and 4G coverage matches Airtel’s 85%.
| Metric | Vi (Q2 FY26) | Jio (Q2 FY26) | Airtel (Q2 FY26) |
|---|---|---|---|
| Revenue (₹ Cr) | 11,195 | 28,000 | 37,000 |
| ARPU (₹) | 180 | 195 | 210 |
| EBITDA Margin (%) | 41.9 | 48 | 53 |
| Net Profit/Loss (₹ Cr) | -5,524 | 5,800 | 4,200 |
| Subscribers (Mn) | 220 | 470 | 390 |
This table highlights Vi’s catch-up mode: If ARPU converges, revenue could double in three years. Yet, Jio’s capex war chest ($10 billion) threatens Vi’s spectrum renewal in 2026.
5G Rollout and Future Catalysts: Vi’s Roadmap to FY27 Profitability
Vodafone Idea accelerates 5G, live in 29 cities with 1 Gbps speeds, investing ₹5,000 crore this fiscal for standalone architecture. Partnerships with Nokia and Ericsson bolster 50,000 site upgrades, targeting 90% coverage by March 2026.
Debt management tops priorities: ₹2.15 lakh crore gross debt, but net ₹1.5 lakh crore post-conversions. A ₹25,000 crore follow-on raise eyes Q3, alongside government stakes up to 49%.
Tariff hikes loom large—15-20% expected in Q4—potentially lifting ARPU to ₹200 and EBITDA to ₹20,000 crore FY27. Analyst targets average ₹12-15, implying 50% upside from current levels.
Risks? Subscriber loss (net -1 million QoQ) and capex overruns. Success hinges on execution; failure could force mergers.
For “Vodafone Idea 5G plans 2025,” excitement builds as beta tests in Mumbai yield 2.5 Gbps downloads, promising enterprise wins in smart cities.
Persistent Challenges: Debt, Churn, and Regulatory Hurdles Facing Vi
Vodafone Idea’s scars run deep. AGR dues, despite ₹16,000 crore paid, loom at ₹70,000 crore, with SC hearings pending. Debt servicing eats 70% cash flows, limiting 5G to urban pockets.
Churn persists at 2.5% monthly, versus Jio’s 0.5%, as network outages plague rural users. Capex funding gaps—needing ₹70,000 crore FY26-28—rely on volatile equity markets.
Regulatory flux, like DoT’s quality-of-service penalties (₹500 crore FY25), adds friction. Vi counters with 10,000 tower additions, but execution lags.
Navigating these, Vi’s survival demands agility. Investors must weigh resilience against these headwinds.
Conclusion: Glimmers of Hope for Vodafone Idea Shareholders in 2025
Vodafone Idea’s Q2 FY26 results deliver more than numbers—they offer hope. Narrowed losses, ARPU fireworks, and cost mastery position Vi as a turnaround contender in India’s telecom arena. While not out of the woods, strategic 5G bets and tariff levers could catalyze Vi share price to ₹15+ by mid-2026.
For stakeholders, patience pays: Hold for long-term believers, enter on dips for traders. As searches for “Vodafone Idea latest news” surge, one truth endures— in telecom’s Darwinian world, adaptation wins. Vi adapts; watch it evolve.