IDEA Q2 FY26 earnings call.
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Revenue
₹11,190 Cr
verified against source
Revenue YoY
2.4%
reported change
EBITDA
₹4,690 Cr
latest reported figure
Source
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Where this quarter sits.
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What the record says.
Vodafone Idea's Q2 FY26 results show modest recovery with revenue growing 2.4% YoY to ₹11,190 crore and EBITDA improving 3% to ₹4,690 crore, with margin expansion of 20bps to 41.9%. The improvement reflects early benefits from the network investment cycle initiated in Q3 FY25, with 4G population coverage reaching 84% and 5G services now live in 29 cities across 17 circles. Data traffic surged 21.4% YoY and ARPU rose 8.7% to ₹180. However, subscriber losses continue—though at a decelerating pace—and 4G/5G subscriber base grew only 0.4 million over 12 months to 127.8 million, trailing competitors significantly. Cash EBITDA declined 3.4% YoY due to higher network operating costs from the investment phase. The company faces existential capital needs—targeting ₹7,500-8,000 crore capex for FY26 with ₹42 billion already spent in H1, while AGR dues of approximately ₹78,500 crore remain unresolved pending Supreme Court and government decisions. The funding gap and competitive intensity from Jio and Airtel on 5G premiumization present material execution risks.
Colored figures show movement against the previous available record.
Guidance to track
- H1 FY26 capex stood at ₹4,200 crore, with H2 deployment expected to accelerate. Funding is planned through internal accruals without dependence on external capital raise for this quantum.
- Current 4G population coverage at 84% (up from 77% in March 2024). Management targets reaching 90% coverage in the next few quarters, requiring approximately ₹4,000 crore additional capex.
- Moving from introductory ₹299 (1.5GB) to ₹349-379 range in markets with 2-3 months of 5G presence, aligning with competitor pricing of ₹349-379. Premiumization to follow as 5G subscriber base scales.
- Vodafone Business targeting deployment of 12 million smart metering solutions over 3 years to establish position in India's smart energy transition, with IoT Innovation Lab launched in partnership with AWS.
Risks flagged
- Subscriber net losses persisted at approximately 1 billion in Q2 despite network investments and product initiatives. Management attributes this to seasonality but acknowledges coverage gaps remain, with trajectory linked to network expansion pace.
- While ₹7,500-8,000 crore capex guidance for FY26 doesn't require external funding, the ₹50,000-55,000 crore long-term network expansion plan remains contingent on securing debt financing from banks. Banks may await government relief package clarity given Supreme Court AGR order and government's 49% stake.
- Data usage per subscriber at 18.5 GB compares unfavorably to ₹28 GB for peer network, with competitors having 40%+ of data traffic on 5G versus Vodafone Idea in very early 5G rollout phase. This ARPU and engagement gap could widen competitive disadvantage.
- AGR dues of approximately ₹78,500 crore remain unresolved. Supreme Court order dated October 27 and November 3, 2025 permits government reconsideration of additional AGR demand and comprehensive reconciliation including interest and penalty through FY17. Timeline for resolution and impact on company finances remains uncertain.
Key quotes
- Our challenge has been on the extent of coverage that we have not been able to do and we firmly believe that the more sites and the more 4G and 5G sites that we roll we will start to see this trajectory getting into positive.
- From a tariff hike point of view, if you really ask us—obviously it depends on how the industry takes shape and how the leaders take the position on the tariff hike. Is there a requirement? Probably the answer is yes. How fast and how soon can that happen? We'll kind of wait and watch.
- We see in the circles that we have invested early we clearly see attraction, better traction where we see a better search of the customers, we see a better engaged customer as far as the data usage is concerned and we also see a better traction in customer acquisition.
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