Vodafone Idea Q1 FY27 Results (NSE: IDEA)
Signal: Loss narrowed
The read
The operating trajectory is improving for a fourth consecutive quarter of YoY margin expansion in the recent series: Q1FY27 revenue reached ₹11,689 Cr (+6.0% YoY), EBITDA rose 10.0% to ₹5,229 Cr and ARPU increased 10.2% to ₹195, with the first post-merger quarter of net subscriber addition; however, the ₹3,754 Cr loss, negative net worth of ₹38,327 Cr and ₹156,058 Cr of deferred spectrum and AGR obligations leave funding execution as the decisive thesis variable.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹11,689 Cr | 6.0% | +3.2% |
| EBIT | ₹-238 Cr | 66.9% | |
| Net profit | ₹-3,754 Cr | 43.2% | |
| EPS | ₹-0.35 | 44.4% | |
| EBIT margin | 44.7% |
P&L walk
Revenue increased to ₹11,689 Cr (+6.0% YoY, +3.2% QoQ) while EBITDA rose to ₹5,229 Cr (+10.0% YoY); lower finance costs and a ₹1,611 Cr exceptional gain reduced the reported loss to ₹3,754 Cr from ₹6,608 Cr.
Key positives
- Revenue reached ₹11,689 Cr, up 6.0% YoY and 3.2% QoQ, accelerating from the recent Q3FY26 growth of 1.9% and Q4FY26 growth of 2.9%.
- ARPU rose 10.2% YoY to ₹195, while data usage increased 27.9% to 88.4 Pb/Day, indicating improved monetisation and network engagement.
- The customer base increased to 193.1 million from 192.8 million in Q4FY26, marking the first quarter of positive net subscriber addition since the merger.
- 4G/5G subscribers rose to 130.1 million from 127.4 million YoY, and 5G became available in over 200 cities and towns.
- EBITDA increased 10.0% YoY to ₹5,229 Cr against 6.0% revenue growth, while finance costs declined 13.1% YoY to ₹5,120 Cr.
Key concerns
- The group still reported a ₹3,754 Cr quarterly loss and negative net worth of ₹38,327 Cr, despite the operating improvement.
- Deferred spectrum and AGR obligations total ₹156,058 Cr, with ₹9,259 Cr scheduled for instalment payments by June 2027.
- The company remains in discussions with banks to raise additional funds, making network rollout and debt servicing dependent on successful funding closure.
- The quarter's reported loss improvement included a ₹1,611 Cr exceptional gain, so the pre-exceptional loss remained ₹5,358 Cr.
Research and educational content only. Not investment advice.