Vodafone Idea swings to ₹51,970 crore Q4 net profit QoQ; ARPU rises to ₹190

Debt-ridden telecom operator Vodafone Idea Ltd on Saturday (May 16) reported a net profit of ₹51,970 crore in the fourth quarter compared with a loss of ₹5,286 crore in the previous quarter, driven by an exceptional gain.

The company posted an exceptional gain of ₹51,976 crore in Q4, compared with an exceptional loss of ₹5,290 crore in the previous quarter. It added that the results included a one-time accounting gain arising from AGR re-assessment and recognition of the present value of future AGR payments.

Revenue for the quarter rose 0.1% quarter-on-quarter to ₹11,332 crore from ₹11,323 crore, marking the highest average daily revenue in the last six years. EBITDA increased 1.5% to ₹4,889 crore from ₹4,817 crore, while EBITDA margin expanded to 43.14% from 42.54% quarter-on-quarter.

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Average revenue per user (ARPU) stood at ₹190 in Q4FY26, compared with ₹175 in Q4FY25, reflecting an 8.3% year-on-year increase and was stated to be the highest in the industry. The 4G/5G subscriber base stood at 128.9 million, compared with 126.4 million in the corresponding quarter last year.

For FY26, the group reported a loss of ₹24,059 crore before exceptional items and tax. Vodafone Idea reported annual revenue of ₹44,873 crore, up 3.0% year-on-year, and EBITDA of ₹19,003 crore, up 4.8% from ₹18,127 crore in FY25. Net worth stood at negative ₹35,758 crore as of March 31, 2026.

Capital expenditure for FY26 stood at ₹8,742 crore. The company said it launched 5G services in 83 cities and expanded 4G coverage by 48 million users, covering more than 86% of the population.

It added that 4G data capacity increased by over 12% year-on-year, total unique broadband towers stood at 202,008, and more than 17,300 towers were added during the year. The company has a customer base of 192.8 million, with monthly subscriber additions turning positive since February 2026.

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As of March 31, 2026, the debt from banks stood at ₹726 crore, which reduced from ₹2,326 crore for the same period last financial year. Additionally, in December 2025, we raised ₹3,300 crore via NCD. The cash and bank balance stood at ₹3,715 crore as of March 31, 2026

The company said its board has approved the issuance of up to 430 crore warrants convertible into equity shares on a preferential basis to Suryaja Investments Pte. Ltd., Singapore, an Aditya Birla Group entity and promoter group company.

The warrants will be issued at ₹11 per warrant, aggregating up to ₹4,730 crore. Each warrant will be convertible into one equity share, with 25% payable at the time of subscription and the remaining 75% payable at the time of exercise of the conversion right.

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The company said each warrant will be convertible into one equity share of face value ₹10 and can be exercised in one or more tranches within 18 months from the date of allotment. If not exercised within the period, the warrants will lapse, and the 25% amount paid at issuance will be forfeited.

Vodafone Idea also said it will convene an extraordinary general meeting on June 11, 2026, to seek shareholder approval for the preferential issue. The investor in the issue is Suryaja Investments Pte. Ltd., Singapore. Post-conversion, it may hold up to 3.82% equity in the company, assuming full conversion of warrants.

On Friday (May 15), shares of Vodafone Idea Ltd ended at ₹12.96, down by ₹0.010, or 0.077%, on the BSE.