Vodafone Idea (Vi) reported a 6.2% year-on-year increase in revenue to Rs 11,884 crore for the second quarter of FY27, supported by higher average revenue per user (ARPU), postpaid subscriber additions and improving data usage. The telecom operator’s ARPU rose to Rs 198 in the September quarter, compared with Rs 180 in the same period last year.
The results also show a stronger push towards network expansion. Vi’s capital expenditure more than doubled sequentially to Rs 3,946 crore, while its total customer base increased to 194.4 million from 193.1 million in the previous quarter.
Despite these improvements, the company continued to report substantial losses. Its consolidated net loss widened to Rs 5,975 crore, highlighting the financial challenges that remain even as its operating performance improves.
Vi Q2 FY27 financial results
Vi’s revenue from operations increased to Rs 11,884 crore in Q2 FY27 from Rs 11,195 crore in the corresponding quarter last year. Revenue was also up 1.7% compared with Rs 11,689 crore in Q1 FY27.
Cash EBITDA, which excludes the impact of Ind AS 116 lease accounting, increased 11.2% year-on-year to Rs 2,498 crore. Its cash EBITDA margin stood at 21%, compared with 20.1% in Q2 FY26.
Reported EBITDA reached Rs 4,981 crore, up 6.3% year-on-year. However, the company’s reported net loss increased to Rs 5,975 crore from Rs 5,524 crore a year earlier.
Vi said the reported loss was affected by a mark-to-market loss on treasury assets. Excluding exceptional items, its quarterly loss stood at Rs 5,513 crore, slightly lower than the Rs 5,562 crore loss recorded in Q2 FY26.
| Financial metric | Q2 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|
| Revenue from operations | Rs 11,195 crore | Rs 11,689 crore | Rs 11,884 crore |
| Cash EBITDA | Rs 2,246 crore | Rs 2,475 crore | Rs 2,498 crore |
| Cash EBITDA margin | 20.1% | 21.2% | 21.0% |
| Reported EBITDA | Rs 4,685 crore | Rs 5,034 crore | Rs 4,981 crore |
| Reported net loss | Rs 5,524 crore | Rs 3,754 crore | Rs 5,975 crore |
ARPU increases to Rs 198 as customers upgrade
Vi’s ARPU increased 9.7% year-on-year to Rs 198 in Q2 FY27 from Rs 180 in the year-ago quarter. It was also higher than the Rs 195 recorded in Q1 FY27.
The company attributed the improvement primarily to customer upgrades. Moving subscribers to higher-value plans can improve revenue without requiring an equivalent increase in the total customer base.
Vi’s 4G and 5G subscriber base reached 131 million, compared with 127.8 million in Q2 FY26. This represents an addition of 3.2 million users over the year.
Daily data usage also increased to 93.6 petabytes from 73.6 petabytes a year earlier, a growth of 27.1%. The increase indicates higher data consumption across its network and provides an opportunity to generate more revenue from mobile data services.
Postpaid subscribers increase by 2 million
Vi’s total subscriber base increased to 194.4 million at the end of September 2026, compared with 193.1 million at the end of June.
The postpaid segment recorded a particularly strong quarter. Its postpaid subscriber base increased to 33.9 million from 31.9 million in Q1 FY27, adding approximately two million subscribers sequentially. Vi described this as its highest quarterly increase in postpaid subscribers in the last nine quarters.
The postpaid addition is important because the segment can provide more predictable monthly revenue and opportunities to attract higher-value customers through family and bundled plans.
However, the broader subscriber picture remains mixed. Vi’s reported total customer base was 196.7 million in Q2 FY26, higher than the 194.4 million recorded in the latest quarter. The sequential increase is encouraging, but the company still needs to demonstrate sustained subscriber growth over a longer period.
Vi more than doubles quarterly capex
Vi spent Rs 3,946 crore on capital expenditure during Q2 FY27, representing a 104.5% increase over the previous quarter.
The investment is being directed towards expanding its 4G and 5G networks, adding broadband sites and upgrading core and transmission infrastructure.
The operator added nearly 9,000 broadband towers during the September quarter, its highest quarterly addition in the last nine quarters. Its total unique broadband tower count reached 213,616 at the end of September, compared with 204,893 in the previous quarter.
Vi also expanded its 5G services to 400 cities and towns across the 17 circles where it holds 5G spectrum. Its 4G population coverage reached nearly 88% as of September 2026.
The company said it had extended 4G coverage to an additional 45 million people since Q2 FY26. It expects 4G population coverage in its 17 key circles to increase to more than 95% with planned investments.
Vi has placed capex orders worth more than Rs 13,200 crore under its three-year investment plan. It said nearly Rs 6,000 crore of capex had been executed against these orders.
The pace of future network expansion will depend partly on the company’s ability to secure additional funding and execute its investment programme.
Vi vs Airtel vs Jio: Where does ARPU stand?
Vi’s ARPU of Rs 198 remains below the figures reported by Bharti Airtel and Reliance Jio for Q2 FY27.
| Operator | Q2 FY27 ARPU | Year-on-year movement |
|---|---|---|
| Bharti Airtel | Rs 271 | Rs 256 to Rs 271 |
| Reliance Jio | Rs 218.8 | Up 3.5% |
| Vodafone Idea | Rs 198 | Rs 180 to Rs 198 |
Airtel reported an India mobile ARPU of Rs 271, while Jio Platforms reported connectivity ARPU of Rs 218.8. Vi’s reported customer ARPU, excluding machine-to-machine connections, stood at Rs 198.
These figures are useful for understanding the broad revenue-per-customer gap, although the operators’ reported ARPU definitions and business reporting scopes are not identical.
Vi’s improvement is notable, but it still has ground to cover. Higher-value postpaid additions, customer upgrades and improved network coverage could help narrow the gap if the company can retain subscribers and improve its service experience.
The financial scale of the three businesses also remains very different. Airtel reported consolidated revenue of Rs 60,878 crore, while Jio Platforms reported revenue from operations of Rs 40,475 crore. Vi’s revenue from operations was Rs 11,884 crore. These are not directly comparable revenue bases because the companies report different business scopes and services.
Funding and debt remain major challenges
Vi’s operating improvement has not yet translated into profitability. The company reported a consolidated net loss of Rs 5,975 crore for Q2 FY27 and a negative net worth of Rs 44,298 crore as of September 30, 2026.
Its financial results also show substantial deferred payment obligations. These included Rs 1,31,268 crore towards spectrum and Rs 26,264 crore towards adjusted gross revenue (AGR), including accrued interest. Instalments scheduled against these deferred obligations through September 2027 amounted to Rs 9,216 crore.
Vi said it had secured total funding of more than Rs 10,500 crore up to the first half of FY27, including warrants and fund-based and non-fund-based facilities. More than Rs 4,000 crore of incremental bank funding was arranged during Q2 FY27.
The company is also in discussions with banks to raise additional funds. Its ability to secure financing will be important for maintaining the current pace of network investment and meeting upcoming payment obligations.
Does Vi’s Q2 performance indicate a recovery?
Vi’s September-quarter results show progress across several operating measures. ARPU increased, postpaid additions accelerated, 4G and 5G subscribers grew, and capital expenditure moved higher.
The network expansion is particularly important because improved coverage and capacity could help the operator compete more effectively with Airtel and Jio. A stronger network proposition may also support customer retention and encourage more subscribers to move to higher-value plans.
However, the improvement should not yet be treated as a full financial turnaround. Vi remains loss-making, its net worth is negative, and its spectrum and AGR obligations continue to create significant financial pressure.
The next phase of recovery will depend on whether the company can sustain subscriber additions, increase ARPU, improve network quality and secure sufficient funding for its investment programme. Q2 FY27 offers encouraging operating signals, but consistent execution over the coming quarters will determine whether these improvements can become a durable recovery.
