Vodafone Idea Limited reported improved financial performance for the third quarter ended December 31, 2025, with consolidated net loss narrowing to ₹5,286 crore compared to ₹6,609 crore in the corresponding quarter of the previous year. The telecom operator demonstrated operational resilience amid ongoing industry challenges, posting revenue growth and improved customer metrics.

Financial Performance Overview

The company's consolidated revenue from operations grew 1.9% year-on-year to ₹11,323 crore in Q3FY26, up from ₹11,117 crore in Q3FY25. On a sequential basis, revenue increased from ₹11,195 crore in Q2FY26. Service revenue, the primary component, reached ₹11,307 crore during the quarter.

For the nine months ended December 31, 2025, the company reported consolidated net loss of ₹17,418 crore compared to ₹20,217 crore in the corresponding period of the previous year. Revenue from operations for the nine-month period stood at ₹33,541 crore versus ₹32,557 crore in the previous year.

Operational Highlights and Customer Metrics

The company demonstrated strong operational momentum with key performance indicators showing positive trends. Customer ARPU (excluding M2M) increased 7.3% year-on-year to ₹186 compared to ₹173 in Q3FY25, reflecting improved customer engagement and tariff optimization strategies.

The company's network expansion efforts yielded significant results with 4G coverage expanding to reach 85.5% of the population, up from approximately 77% in March 2024. 4G data capacity increased by over 43% while speeds improved by approximately 22% compared to March 2024.

AGR Settlement and Regulatory Developments

A major development during the quarter was the resolution of the Adjusted Gross Revenue (AGR) matter. The Department of Telecommunication confirmed that AGR dues frozen as of December 31, 2025 amount to ₹87,695 crore, subject to reassessment. The company was carrying AGR liability of ₹80,502 crore as at December 31, 2025.

The new payment structure provides significant relief:

• Maximum ₹124 crore annually for next 6 years (March 2026 to March 2031)
• ₹100 crore annually for following 4 years (March 2032 to March 2035)
• Remaining reassessed AGR dues payable in equal installments over 6 years (March 2036 to March 2041)

Capital Raising and Settlement Activities

The company successfully raised ₹3,300 crore through Non-Convertible Debentures (NCDs) via its subsidiary during the quarter, with proceeds designated for capital expenditure. This fundraising occurred despite the AGR overhang, demonstrating lender confidence in the company's business turnaround prospects.

Vodafone Idea also concluded the settlement of CLAM receivable worth ₹6,394 crore with Vodafone Group. Under the amended Implementation Agreement dated December 31, 2025:

• ₹2,307 crore to be released over next 12 months
• 328 crore equity shares earmarked by Vodafone Group entities for five years
• Fair market value of earmarked shares stands at ₹3,302 crore as of December 31, 2025

Network Expansion and Technology Rollout

The company continued its 5G expansion, extending services across all 17 priority circles where it holds 5G spectrum. These circles contribute approximately 99% of the company's revenue. The 5G network is now live in 43 cities across all 17 circles, with recent expansion covering all districts of Kerala.

Capital expenditure for Q3FY26 stood at ₹2,252 crore, while nine-month capex reached ₹6,448 crore. The company added over 6,500 new unique 4G towers during the quarter, bringing total broadband site count to over 548,000 as of December 2025.

Financial Position and Outlook

As of December 31, 2025, the company's debt from banks stood at ₹1,126 crore, while cash and bank balance reached ₹6,963 crore. The company maintains negative net worth of ₹87,744 crore on a consolidated basis, though recent developments regarding AGR settlement and fundraising activities provide improved financial flexibility.

The management expressed confidence in generating sufficient cash flow from operations to meet obligations over the next 12 months, with financial results prepared on a going concern basis. The company continues discussions with banks to raise additional funds as required for its network expansion and modernization plans.

Vodafone Idea has received official confirmation from the Department of Telecom regarding the status of its Adjusted Gross Revenue (AGR) dues, marking a significant development in the ongoing regulatory matter affecting the telecom operator.

AGR Dues Status Confirmed

The Department of Telecom has formally confirmed that the company's AGR dues have been frozen at a substantial amount as of December 31. This confirmation provides official clarity on the telecom operator's outstanding government liabilities.

Reassessment Provisions

While the AGR dues have been frozen at the specified amount, the Department of Telecom has indicated that this figure is not final. The dues amount remains subject to reassessment according to terms and conditions outlined in an official correspondence.

The reassessment framework is governed by specific terms detailed in a letter dated January 7, 2026. This indicates that the frozen amount may undergo review and potential adjustment based on the criteria established in the official communication.

Regulatory Implications

The freezing of AGR dues at ₹876.95 billion provides temporary certainty for the telecom operator regarding its government obligations. However, the provision for reassessment maintains flexibility for future adjustments based on regulatory review processes.

This development represents a significant milestone in the resolution of AGR-related matters for the telecom sector, with the Department of Telecom providing clear documentation of the current status while maintaining provisions for future review.