Q2FY26-Vi expects losses to narrow despite revenue pressures

Vodafone Idea anticipates slightly narrowed losses for the upcoming quarter, despite ongoing revenue challenges and subscriber attrition. The operator projects quarterly revenue growth of approximately 2% year-on-year and between 0.5–2.1% quarter-on-quarter. Average Revenue Per User (ARPU) is expected to increase to between Rs 166 and Rs 169, compared to Rs 165 in the previous quarter. The subscriber base is projected at about 196.7 million after a further net loss of 0.5–1 million users this quarter. EBITDA margins are likely to remain flat, while net losses are expected to narrow to a range of Rs 6,600–7,077 crore, reflecting ongoing operational cost controls and limited ARPU expansion.​

Analysts highlight several major challenges facing Vodafone Idea, notably chronic funding constraints, a delayed rollout of 5G services compared to rivals, and persistent competitive pressure from stronger peers. While ARPU improvement is being driven by continued migration to premium plans and gradual tariff adjustments, the benefit is moderated by a shrinking subscriber base. The operator’s operational efficiency is reflected in relatively stable expenses, but limited access to new capital may restrict further network investments and impact future competitiveness. Broader sector attention will be focused on Vodafone Idea’s fundraising initiatives and potential relief around Adjusted Gross Revenue (AGR) or spectrum liabilities, which continue to weigh on the company’s financial strategy.​

Overall, Vodafone Idea’s financial performance this quarter is expected to show modest revenue gains and gradually narrowing losses, but its long-term recovery will depend heavily on successful capital infusion, effective cost management, and competitive responses to India’s rapidly evolving telecom landscape.​

The financial results referred to are for Vodafone Idea ‘s second quarter (Q2) of the fiscal year 2025-26 (FY26), covering the period July to September 2025. The announcement is scheduled for November 10, 2025, with an investor call on November 11, 2025.

CT Bureau