Vodafone Idea Posts Surprise Q4 Profit of Rs 51,970 Crore on One-Time Accounting Gain from AGR Reassessment

Vodafone Idea Reports Net Profit of Rs 51,970 Crore in Q4FY26

Vodafone Idea, the debt-laden telecom operator, has reported a consolidated net profit of Rs 51,970 crore for the March quarter, a significant reversal from a loss of Rs 7,166 crore a year earlier. This profit is largely attributed to a one-time accounting gain arising from the reassessment of adjusted gross revenue (AGR) dues and recognition of the present value of future payments.

The company's operational performance has shown steady recovery, with quarterly revenue rising 2.9% year-on-year to Rs 11,332 crore. Excluding exceptional items, Vodafone Idea's revenue growth has been driven by aggressive 4G expansion and wider 5G rollout, resulting in positive monthly subscriber additions from February 2026.

Vodafone Idea's CEO, Abhijit Kishore, attributed the gains from capex investments and network rollout to the company's decisive step forward in Q4FY26. The company also reported a return to net subscriber additions since February, reflecting the impact of sustained investments in network quality and coverage.

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On April 30, 2026, the Department of Telecommunications (DoT) finalised the AGR dues at Rs 64,046 crore for FY07–FY19. Following the reassessment, Vodafone Idea derecognised financial liabilities worth Rs 80,502 crore as of December 31, 2025, and recognised revised liabilities of Rs 24,880 crore based on the present value of future payments. This resulted in a gain of Rs 55,622 crore, booked under exceptional items in FY26.

The company has strengthened its confidence in generating sufficient operational cash flows to meet obligations towards lenders, spectrum payments, and AGR dues over the next 12 months. Vodafone Idea has met all debt obligations on time, is in discussions with banks to raise additional funding, and has therefore prepared its financial statements on a going concern basis.

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Despite the accounting-led gain, the group reported a pre-exceptional loss before tax of Rs 24,059 crore for FY26, while its net worth remained negative at Rs 35,758 crore. As of March 31, 2026, Vi's debt from banks and other lenders stood at Rs 4,127 crore, with Rs 726 crore due by March 2027.

Vodafone Idea expanded its 4G coverage to an additional 48 million people during the year, while its 5G services are now live in over 80 cities across all 17 priority circles, which contribute nearly 99% of its revenue. The company added more than 17,300 broadband towers in FY26, taking the total count to over 202,000, while 4G population coverage rose to 86.3%. It expects coverage in its key circles to cross 95% with planned investments.

For FY26, revenue rose 3% to Rs 44,873 crore, while EBITDA increased 4.8% to Rs 19,003 crore. Annual capex stood at Rs 8,742 crore, including Rs 2,294 crore in the March quarter. Vodafone Idea's average revenue per user (ARPU) increased 8.3% year-on-year to Rs 190 in Q4FY26 from Rs 175 a year ago, the highest in the industry and driven largely by customer upgrades.

The company ended the quarter with a total subscriber base of 192.8 million, including 128.9 million 4G and 5G users, up from 126.4 million a year earlier. On the balance sheet front, bank debt reduced sharply to Rs 726 crore as of March 31, 2026, from Rs 2,326 crore a year ago. The company also raised Rs 3,300 crore through non-convertible debentures in December 2025, while cash and bank balances stood at Rs 3,715 crore at the end of FY26.

Vi also said that settlement assets linked to the 2017 merger agreement with erstwhile Vodafone India were remeasured during the quarter. The fair value of 328 crore earmarked equity shares stood at Rs 2,619 crore as of March 31, 2026, resulting in a net loss of Rs 683 crore during the quarter. However, after accounting for write-backs of certain provisions during FY26, the company reported a net exceptional gain of Rs 545 crore under provisions written back net of settlement asset remeasurement losses.