Vodafone Idea Limited (Vi) has reported significant improvements in its subscriber metrics and network coverage for the first quarter. The telecom operator has expanded its 5G services to 22 cities across 13 circles, with plans for further expansion in the coming months. Additionally, the company is in discussions to secure ₹5000.00 crore in funding. However, Vi has clarified that it has not received any message from the government regarding additional relief measures.

Subscriber Metrics and Network Expansion

Vi's CEO, Akshaya Moondra, highlighted that the company's focused investments have led to improved coverage and enhanced customer experience. The telecom operator reported its best subscriber metrics since the merger, with the subscriber loss narrowing to 0.50 million in Q1, compared to 1.60 million in the previous quarter and about 5.00 million in Q3.

The company added over 4,800 new unique 4G towers during the quarter, increasing its 4G population coverage to approximately 84%, up from 77%. Vi's 4G data capacity expanded by about 36%, driving a 24% improvement in 4G speeds.

5G Rollout and Adoption

Vi has expanded its 5G services to 22 cities across 13 circles, with plans to cover additional key cities across all 17 priority circles. The company reported that 60% to 70% of subscribers with 5G-capable devices are adopting and using 5G services within about two months of launch in a given area.

Financial Performance

The company reported the following financial results for Q1:

The reported EBITDA for the previous year's Q1 was ₹42.00 billion.

Capex and Funding

Vi invested ₹24.40 billion in capex during Q1. The company remains committed to its broader capex plans of ₹500.00-550.00 billion over three years, subject to securing debt financing. Moondra mentioned that the company is engaged with lenders to secure debt financing and is also exploring non-banking sources of funding to maintain continuity in its capex cycle.

In a significant development, Vodafone Idea is currently in discussions to secure ₹5000.00 crore in funding. This deal is expected to be finalized soon, which could provide a much-needed boost to the company's financial position and support its expansion plans.

Future Outlook

With the expansion of 4G and 5G networks, along with various customer-centric initiatives, Vi expects to see continued improvement in subscriber metrics. The company is focusing on driving revenue growth through subscriber addition and enhancing customer experience with intense market execution.

Abhijit Kishore, who will be taking over as the new CEO, expressed optimism about the company's prospects in the enterprise segment, citing opportunities in cloud services and IoT, particularly in areas like automatic metering.

No Government Communication on Additional Relief

Vodafone Idea has clarified that it has not received any message from the government regarding additional relief measures. This statement comes amidst speculation about potential government support for the telecom sector.

As Vodafone Idea continues its turnaround journey, the company remains focused on expanding its network, improving service quality, and exploring new revenue streams to strengthen its position in the competitive Indian telecom market. The potential influx of ₹5000.00 crore in funding could play a crucial role in supporting these efforts and accelerating the company's growth strategy, while the company awaits any potential government relief measures.

Vodafone Idea Limited (VIL) reported improved subscriber metrics and continued 5G expansion in its Q1 FY26 earnings call. The telecom operator shared insights on its performance, strategic initiatives, and future plans.

Key Highlights

• Revenue for Q1 FY26 stood at Rs. 110.20 billion, registering a 4.9% year-on-year growth.
• Cash EBITDA improved by 3.7% year-on-year to Rs. 21.80 billion.
• The company's subscriber loss reduced significantly to 0.5 million in Q1 FY26, compared to 5 million in Q2 and Q3 of the previous fiscal year.
• VIL added 1 million 4G subscribers during the quarter, bringing the total to 127.4 million.
• 5G services expanded to 22 cities across 13 circles, with plans to cover all 17 priority circles by September 2025.

Network Expansion and Capex

• The company invested Rs. 24.40 billion in capex during Q1 FY26.
• Over 4,800 new unique 4G towers were added, increasing 4G population coverage to ~84%.
• Total broadband site count reached ~516,200, including ~13,100 Massive MIMO sites and more than 12,300 small cells.
• VIL aims to meet its H1 FY26 capex target of Rs. 50-60 billion by September 2025.

Financial Position

• The company's debt from banks reduced to Rs. 19.30 billion as of June 30, 2025.
• Total government dues, including spectrum and AGR, stood at approximately Rs. 195,000 crore.

Strategic Initiatives

• VIL launched 'Vi Finance' on its app, offering personal loans, fixed deposits, and credit cards through partnerships.
• The company secured a 10-year contract with Genus Power Infrastructure Ltd for 5 million smart meters, marking a significant win in the IoT space.
• VIL introduced new postpaid plans, including a Netflix subscription in the Vi Max Family Plan.

Future Outlook

• The company remains engaged with lenders to secure debt financing for its long-term network expansion plans.
• VIL is exploring non-banking funding sources to maintain continuity in its capex cycle.
• The management expressed confidence in continuing improvement in subscriber metrics based on recent trends.

Akshaya Moondra, outgoing CEO of Vodafone Idea, stated, "Our investments have led to improved coverage and enhanced customer experience, resulting in best subscriber metrics since merger. With all these developments, we are confident of continuing improvement in subscriber metrics, which has been demonstrated for the last 2 quarters."

As Moondra steps down, Abhijit Kishore takes over as the new CEO, bringing his experience in the telecom industry and enterprise business to lead Vodafone Idea's next phase of growth.