India’s debt-saddled telecom operator, Vodafone Idea (Vi), reported a smaller-than-expected consolidated net loss for the quarter ended September 30, 2025. The improved financial performance was primarily driven by its ongoing investment in 4G and 5G infrastructure and an increase in Average Revenue Per User (ARPU), as more users upgraded to higher-margin plans.
Vi’s consolidated loss after tax narrowed significantly to ₹55.24 billion (approximately $628.5 million), a notable improvement from the loss of ₹71.76 billion reported in the same quarter last year.
The company’s strategic focus on network quality and plan upgrades yielded positive results in key operational indicators:
- ARPU Growth: The company’s Average Revenue Per User (ARPU), a critical profitability metric, rose approximately 9 percent year-on-year to ₹180. This increase was supported by customer upgrades and steady data usage.
- Subscriber Mix: The growth was aided by a modest 1.5 percent increase in 4G and 5G subscribers, showing a positive shift toward higher-value customers.
- Competitive Gap: Despite the improvement, Vi’s ARPU of ₹180 still trails its larger competitors significantly, falling short of Reliance Jio’s ₹211.4 and Bharti Airtel’s ₹256.
Vi, which was formed in 2018 by the merger of the Indian arm of the UK’s Vodafone Group and Aditya Birla Group’s Idea Cellular, has reported losses every quarter since. The telecom operator remains weighed down by over $22 billion in debt and the challenge of expanding its networks as rapidly as its rivals. The Indian government currently holds a 49 percent stake in the company.
The company’s operational recovery comes amidst persistent financial concerns. Analysts continue to warn that Vi’s long-term survival hinges on securing fresh capital and receiving urgent government relief regarding its massive statutory liabilities.
A potential lifeline was recently offered when the Supreme Court of India ruled that the government could reassess the quantum of the firm’s telecom dues. With a major payment deadline for billions in statutory dues looming in 2026, this government reassessment offers a critical window for the debt-saddled operator.
Key Highlights:
- Loss Narrows: Vodafone Idea (Vi) posted a smaller consolidated net loss of ₹55.24 billion in the quarter ended September 30, 2025, compared to a loss of ₹71.76 billion a year ago.
- ARPU Increase: Average Revenue Per User (ARPU) rose by approximately 9 percent year-on-year to ₹180, driven by more users upgrading to 4G and 5G plans.
- Competitive Challenge: Despite the ARPU gain, Vi’s figure of ₹180 remains significantly lower than Reliance Jio (₹211.4) and Bharti Airtel (₹256), highlighting the competitive gap.
- Debt and Relief: Vi is still burdened by over $22 billion in debt. Its future hinges on securing fresh funding and the impact of the recent Supreme Court ruling allowing the government to reassess the quantum of the firm’s telecom dues.