Vodafone Idea, India’s third-largest telecom operator, posted a ₹51,970 crore web profit within the March quarter owing to one-time accounting achieve from the federal government’s adjusted gross income (AGR) aid.
That is the primary time in recent times that the telecom operator has posted a web profit and returned to the black. To make certain, the corporate booked an distinctive achieve of ₹58,116 crore in the course of the quarter on the discount of deferred AGR dues and the popularity of the current worth of future AGR funds.
Earlier than accounting for the distinctive achieve, the fourth-quarter loss stood at ₹5,515 crore. It incurred losses of ₹7,167 crore and ₹5,286 crore within the year-ago and quarter-ago durations, respectively.
Promoter infusion
Individually, on Saturday, the telecom operator mentioned the promoter, the Aditya Birla Group, has dedicated to a capital infusion of ₹4,730 crore. The board has authorized the issuance of up to 4.3 billion warrants, every convertible into one fairness share, representing a 3.82% stake, to Suryaja Investments Pte Ltd, Singapore, an Aditya Birla Group entity, at a problem value of ₹11 per warrant, in accordance to an change submitting. It added that the proposal is topic to shareholder approval at a unprecedented normal assembly on 11 June.
On Friday, shares of Vodafone Idea ended 0.3% decrease at ₹12.93 on Nationwide Inventory Alternate.
The promoter infusion is critical as the corporate has been struggling for months to safe financial institution funding, with lenders remaining cautious of extending recent debt to the cash-strapped telecom providers supplier.
“25% of the Warrant Train Value shall be payable on the time of subscription of Warrants, and the stability 75% of the Warrant Train Value shall be payable by the warrant holder on the time of train of the suitable hooked up to the warrant to subscribe to fairness shares,” the corporate mentioned.
Q4 efficiency
A discount in finance value additionally helped the corporate’s backside line.
On 31 December, the Centre froze its AGR dues at ₹87,695. Later in April, the federal government slashed the cash-strapped telecom agency’s AGR dues by ₹23,600 crore to ₹64,046 crore after recalculation, deferring the majority of its funds by 10 years, to be paid from FY36 to FY41.
Its income from operations elevated 2.9% on-year and a pair of.3% on-quarter to ₹11,332 crore, surpassing the common estimate of 4 brokerage corporations of ₹11,287 crore. The development in income might be attributed to its community growth and enhancements, 2G-to-4G/5G migration, and elevated information consumption on the community.
“The positive factors from the capex investments and community rollout are actually clearly seen. Q4FY26 marks a decisive step ahead throughout all seven key parameters we benchmark our efficiency towards, demonstrating sequential enchancment. Most importantly, our subscriber addition turned web optimistic since February 2026, a significant milestone that displays the influence of our sustained community funding,” mentioned Abhijit Kishore, chief govt of Vodafone Idea.
Vodafone Idea’s earnings earlier than curiosity, taxes, depreciation and amortisation (Ebitda) got here in at ₹4,890 crore, up 4.9% year-on-year.
In 2025-26, the corporate witnessed a 3% improve in income from operations to ₹43,571 crore. The corporate posted a web profit of ₹34,552 crore, in contrast to a ₹20,217 crore loss within the earlier yr. The Ebitda for the yr rose 4.8% to ₹19,003 crore.
It has additionally arrested the subscriber loss, which remained flat at 192.8 million on the finish of March.
“Our month-to-month subscribers’ addition has turned optimistic since February 2026. We closed the quarter with 128.9 million 4G/5G subscribers, up from 126.4 million in the identical interval final yr,” the corporate mentioned.
Regardless of a shorter quarter with two fewer billing days, its blended common income per person (Arpu) grew 1.16% sequentially to ₹174 a month, from ₹172 within the December quarter. Its buyer Arpu, excluding machine-to-machine customers, was at ₹190, up from ₹186 within the earlier quarter. Community upgrades and 2G to 4G/5G migration additionally helped it enhance its Arpu. Compared, Jio’s Arpu stood at ₹214 a month on the finish of March, whereas that of Bharti Airtel was at ₹257 per thirty days.
As on 31 March, the corporate’s financial institution debt stood at ₹726 crore, down from ₹2,326 crore for the year-ago interval, the corporate mentioned. Moreover, in December 2025, Vodafone Idea raised ₹3,300 crore by way of non-convertible debentures (NCDs). The money and financial institution stability stood at ₹3,715 crore as of 31 March 2026.
Whereas Vodafone Idea has obtained aid on the AGR entrance, its deferred spectrum dues stood at ₹1.27 trillion. Additional, following the revised fee schedule, the corporate’s AGR-related legal responsibility in its books stood at ₹25,254 crore underneath present-value accounting norms.
Because of this though Vodafone Idea’s whole AGR dues are mounted at ₹64,046 crore, the legal responsibility recorded in its books displays the current worth of future AGR-related funds, in accordance with accounting requirements.
The corporate mentioned the instalments payable underneath deferred fee obligations, as scheduled for March 2027, quantity to ₹7,076 crore.
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