Vodafone Idea Shares Gain by 2% After Q3 Results Show Lower Losses, Higher Revenue

Shares of Vodafone Idea Ltd rose on Wednesday after the telecom operator reported a narrower consolidated net loss for the December quarter. The stock climbed over 2 percent to Rs 10.05 on the NSE, snapping a two-day losing streak. Despite the rebound, Vodafone Idea shares are still down nearly 7.4 percent so far in January. For Q3 FY26, the company reported a consolidated net loss of Rs 5,286 crore, improving from a loss of Rs 6,609 crore in the corresponding quarter last year. Revenue from operations rose 1.86 percent year-on-year to Rs 11,323 crore.

Operational performance also showed steady improvement. Reported EBITDA increased 2.21 percent YoY to Rs 4,816 crore, while EBITDA margin expanded marginally to 42.5 percent from 42.4 percent in Q3 FY25. Average Revenue Per User (ARPU), excluding M2M, improved to Rs 186 during the quarter from Rs 173 a year ago, marking a 7.3 percent annual increase. During the quarter, Vodafone Idea raised Rs 3,300 crore through a non-convertible debenture (NCD) issuance via its subsidiary. The company said the proceeds will be utilised towards capital expenditure, underlining its focus on network expansion and capacity enhancement.

In a significant relief, the Department of Telecommunications confirmed that Vodafone Idea’s Adjusted Gross Revenue (AGR) liability has been frozen at Rs 87,695 crore as of December 31, 2025, subject to reassessment. The revised payment framework substantially reduces near-term cash outflow, with annual payments capped at Rs 124 crore for the next six years, followed by Rs 100 crore per year for four years. The remaining amount will be payable at a later stage without any additional interest.

Commenting on the developments, Abhijit Kishore, CEO of Vodafone Idea, said the quarter marked an important inflection point for the company with the resolution of key legacy issues. He thanked the Government for providing a definitive, long-term solution on the AGR matter and said the company also concluded the settlement of a CLAM receivable of Rs 6,394 crore with the Vodafone Group.

Kishore added that the successful Rs 3,300 crore NCD raise—despite the AGR overhang—reflected lender confidence in Vodafone Idea’s improving business performance. Vodafone Idea, a partnership between the Aditya Birla Group and the Vodafone Group, is among India’s leading telecom service providers. The company holds a large spectrum portfolio, including mid-band 5G spectrum across 17 circles and mmWave spectrum in 16 circles. It offers voice and data services across 2G, 4G and 5G platforms and is steadily expanding its 5G footprint across 17 circles.