Vodafone Idea reports narrower Q1 FY27 loss as revenue and EBITDA rise

Shares of Vodafone Idea gained 3% to Rs 13.27 on the BSE on Tuesday after the debt-laden telecom operator reported a sharp reduction in its consolidated loss for the first quarter. The company's loss narrowed to Rs 3,754 crore in Q1, compared with Rs 6,608 crore in the year-ago quarter. Revenue from operations rose 6% year-on-year (YoY) to Rs 11,689 crore.EBITDA increased 9% YoY to Rs 5,034 crore from Rs 4,612 crore. The EBITDA margin improved to 43.1% from 41.8% in Q1FY26 and remained unchanged from 43.1% in Q4FY26. Average revenue per user (ARPU) climbed 10.2% to Rs 195 from Rs 177 in the year-ago quarter. Vodafone Idea said this was the highest ARPU growth in the industry.The company's combined 4G and 5G subscriber base rose to 130.1 million from 127.4 million in Q1FY26. Vodafone Idea said its 5G services are now available across more than 200 Indian cities and towns, while its 4G network covers 87% of the country's population.Nomura on Vodafone IdeaThe foreign brokerage maintained Neutral on Vodafone Idea with a target price of Rs 12.60, saying the company's Q1FY27 performance was broadly in line with expectations, while the three-year capex programme has now kicked off. Nomura said management commentary on the planned debt raise will be a key monitorable, with progress on the fundraise also likely to benefit Indus Towers.Also read: NSE indices rejig: Vodafone Idea, Wipro part of major changes in Nifty Next 50 and Nifty 100.The brokerage retained its Rs 12.60 target price, based on 14x FY28F EV/EBITDA, and said it prefers Bharti Airtel among telecom stocks under its coverage. Key catalysts for Vodafone Idea include a successful debt raise, industry tariff hikes, faster subscriber additions and a strategic equity investment.Vodafone Idea Q1 highlightsCapex for the quarter stood at Rs 1,930 crore. The company said it has already placed capex orders worth Rs 9,000 crore out of its three-year capex guidance of Rs 45,000 crore.As of June 2026, debt from banks stood at Rs 211 crore. Cash and bank balance stood at Rs 6,558 crore, helped by part proceeds from warrant issuance during the quarter. Vodafone Idea said it has secured funding of Rs 6,400 crore, including warrants, fund-based and non-fund-based facilities, and remains engaged with lenders to close its overall funding plan.Vodafone Idea Q1 management commentaryAbhijit Kishore, CEO of Vodafone Idea, said FY27 is the year of execution for the company. "Our robust Q1FY27 performance is a strong validation of our defined strategy and disciplined execution,” Kishore said.Read more: Vodafone Idea shares rally 80% in less than 3 months. Time to buy or avoid?"During the quarter, we have delivered on all the critical business parameters we measure our success on, including subscriber addition -- first since merger -- and we will continue to drive this," he said.Kishore added that ongoing discussions with lenders give the company confidence of successful closure of debt talks.Vodafone Idea shares are up 12% on a YTD basis and about 9% in the last six months.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Mumbai: Vodafone Idea Limited reported a consolidated net loss of Rs 3,754 crore for Q1 FY27, narrowing 43 percent from Rs 6,608 crore in Q1 FY26, while revenue from operations rose 6.0 percent year-on-year to Rs 11,689 crore. Sequentially, revenue increased 3.2 percent from Rs 11,332 crore in Q4 FY26. EBITDA rose 9.1 percent year-on-year to Rs 5,034 crore, while the company reported its first quarter of net subscriber additions since the merger.Revenue And EarningsTotal income stood at Rs 11,884 crore in Q1 FY27, compared with Rs 11,165 crore in Q1 FY26. Total expenses declined to Rs 17,242 crore from Rs 17,776 crore over the same period. EBITDA increased to Rs 5,034 crore from Rs 4,612 crore, with the EBITDA margin at 43.1 percent.Sequential Performance And Exceptional ItemsCompared with Q4 FY26, revenue from operations increased from Rs 11,332 crore to Rs 11,689 crore, while EBITDA rose from Rs 4,889 crore to Rs 5,034 crore. Q4 FY26 had reported a Rs 51,970 crore profit after tax, driven by Rs 57,491 crore of exceptional items, including the impact of reduction in deferred AGR payment obligations. Q1 FY27 included Rs 1,611 crore of net exceptional gains. This comprised a Rs 1,816 crore gain from remeasurement of settlement assets, partly offset by a Rs 205 crore provision towards regulatory matters. Basic and diluted loss per share stood at Rs 0.35 each. Bombay HC Quashes Retrospective Spectrum Charge On Vodafone Idea And Bharti Airtel; Sets Aside DoT DemandsSubscriber Base And ARPU RiseVodafone Idea's subscriber base increased to 193.1 million from 192.8 million in Q4 FY26, marking its first quarter of net subscriber additions since the merger. Customer ARPU increased 10.2 percent year-on-year to Rs 195 from Rs 177, while the 4G/5G subscriber base rose to 130.1 million from 127.4 million in Q1 FY26.Data usage increased 27.9 percent year-on-year to 88.4 PB per day. The company said 5G was available in more than 200 cities and towns, while 4G population coverage reached 87 percent. Capital expenditure for the quarter stood at Rs 1,930 crore. Vodafone Idea Shares Hit 52-Week High At ₹14.06, CRISIL Upgrade And ₹4,730 Crore Fundraise Boost SentimentDebt And Cash PositionAs of June 30, 2026, the group had Rs 3,708 crore of outstanding debt from banks and others, including interest accrued but not due. Deferred payment obligations stood at Rs 130,299 crore towards spectrum and Rs 25,759 crore towards AGR. The company's press release separately reported cash and bank balances of Rs 6,558 crore.Disclaimer: This report is based on unaudited financial results filed by the company and does not constitute investment advice.