Vodafone Idea Limited Earnings Summary — Q4 FY2026
Vodafone Idea Swings to Massive Accounting Profit on Extraordinary Other Income Amid Stagnant Sales
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 6 consecutive quarters.
- Revenue of ₹11,689 Cr is 6.0% higher year-on-year.
- Revenue has compounded at 4.4% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹-3,754 Cr is 43.2% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Operating margin stands at 43.1% in Q1 FY2027.
- Operating margin expanded by 123 bps year-on-year.
- Over the last two years operating margin has expanded by 306 bps.
- PBT margin is -32.1%.
- Expense growth of 3.8% remained below revenue growth of 6.0%.
- Operating profit of ₹5,034 Cr is 9.1% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 66/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 11,689 | 11,332 | 11,323 | 11,195 | 11,023 | 11,015 | 11,117 | 10,932 | 10,508 | 10,607 |
| Expenses | Stable | 6,655 | 6,443 | 6,506 | 6,511 | 6,410 | 6,356 | 6,405 | 6,383 | 6,304 | 6,274 |
| Operating Profit | Stable | 5,034 | 4,889 | 4,817 | 4,684 | 4,612 | 4,659 | 4,712 | 4,550 | 4,205 | 4,333 |
| Operating Margin | Stable | 43.1% | 43.1% | 42.5% | 41.8% | 41.8% | 42.3% | 42.4% | 41.6% | 40.0% | 40.9% |
| Other Income | Volatile | 1,806 | 57,595 | 1,271 | 140 | 142 | 216 | 250 | 300 | 256 | 33 |
| Interest | Stable | 5,120 | 4,990 | 5,828 | 4,784 | 5,893 | 6,471 | 5,940 | 6,614 | 5,519 | 6,280 |
| Depreciation | Stable | 5,467 | 5,518 | 5,550 | 5,567 | 5,472 | 5,571 | 5,629 | 5,404 | 5,369 | 5,751 |
| Profit Before Tax | Volatile | -3,747 | 51,976 | -5,290 | -5,527 | -6,611 | -7,167 | -6,607 | -7,168 | -6,427 | -7,666 |
| Tax | Volatile | 7 | 6 | -4 | -3 | -3 | — | 2 | 8 | 6 | 9 |
| Net Profit | Volatile | -3,754 | 51,970 | -5,286 | -5,524 | -6,608 | -7,167 | -6,609 | -7,176 | -6,432 | -7,675 |
| Net Margin | Volatile | -32.1% | 458.6% | -46.7% | -49.3% | -60.0% | -65.1% | -59.5% | -65.6% | -61.2% | -72.4% |
Key Takeaways
- Net profit of ₹51,970 Cr is driven by a massive non-operational 'Other Income' of ₹57,595 Cr, rather than business recovery.
- Interest costs remain critically high at ₹4,990 Cr for the quarter, still exceeding operating profit.
- The balance sheet remains technically insolvent with total reserves sitting at negative ₹1,44,101 Cr.
- Subscriber market share continues to erode as competitors Bharti Airtel and Reliance Jio outpace VIL in 5G deployment.
- Equity dilution has been astronomical, with share capital increasing from ₹48,680 Cr to ₹1,08,343 Cr YoY.
- Operating profit margins are stable at 43%, though insufficient for internal funding of heavy spectrum liabilities.
Management Guidance
Management remains in 'survival mode,' focused on continuous fundraising, ARPU hikes, and seeking further regulatory relief regarding AGR and spectrum dues.
Sentiment Shift
Stable
The large accounting profit is an outlier; the underlying operational distress and massive debt overhang remain unchanged.
Outlook
The outlook remains precarious. While the FPO and government equity conversion provide liquidity, the inability to stop subscriber losses and the lack of a proactive 5G strategy suggest continued long-term value erosion.
From the Annual Report (Key Quotes)
“Company represents a case of extreme financial distress within the Indian telecommunications sector.”
“The balance sheet is technically insolvent, showing a negative Book Value per share.”
“Vision for 5G remains a laggard strategy compared to the proactive deployments of competitors.”
Official Quarterly Documents
This summary is AI-generated from Vodafone Idea Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.