Vodafone Idea (IDEA) Q1 26/27 earnings summary

Executive summary

• Revenue grew 6% year-over-year to INR 11,689 crore, with ARPU up 10.2% to INR 195, the highest in the industry.

• Subscriber base increased to 193.1 million, marking the first positive net addition since the merger, and churn reduced by 24 basis points year-over-year.

• 4G/5G subscriber mix improved to 67.4%, with average data usage per 4G/5G subscriber rising 25.2% year-over-year to 21.7 GB.

• 5G services now live in over 200 cities, with over 16,000 5G sites and 4G coverage at 87% of the population.

• Strategic partnerships and product launches, including with Spotify, Physics Wallah, and Meta, to enhance digital offerings.

Financial highlights

• EBITDA for the quarter reached INR 5,034 crore, up 9.1% year-over-year, with margin improving to 43.1%.

• Cash EBITDA grew 13.5% year-over-year to INR 2,407 crore.

• CapEx for the quarter was INR 1,930 crore, with INR 9,000 crore in orders placed out of INR 45,000 crore three-year guidance.

• Net bank debt reduced to INR 211 crore, with total net debt at INR 3,489 crore as of June 30, 2026.

• Free cash and bank balance stood at INR 6,558 crore.

Outlook and guidance

• Three-year targets include sustained net addition, double-digit revenue growth, and tripling cash EBITDA.

• CapEx guidance of INR 45,000 crore over the next three years, with accelerated network rollout planned.

• Confident of generating sufficient cash flow to meet obligations, including spectrum and AGR dues, over next 12 months.

• Planned investments to increase 4G coverage in 17 circles to over 95%.

• Ongoing discussions with lenders to close overall funding plan.