Vodafone Idea Q2 Loss Widens to ₹5,975 Crore as ARPU Rises 10%

Synopsis

Vodafone Idea's consolidated net loss jumped to ₹5,975 crore in the September quarter from ₹5,524 crore in the corresponding period last year, although revenue increased by 6.2 per cent to ₹11,884 crore. The company’s loss adjusted for exceptional items eased slightly to ₹5,513 crore from ₹5,562 crore. Customer ARPU increased by 10% to ₹198 and the subscriber base grew to 194.4 million. The company also stated that it also raised an additional ₹4,000 crore as funding in the quarter.

The consolidated net loss at Vodafone Idea in Q2 FY27 increased to a loss of ₹5,975 crore despite an 11% increase in revenue from operations to ₹11,884 crore. The loss, however, did not come down, as it stood at a higher figure than a year ago of ₹5,524 crore and the June quarter of ₹3,747 crore.

The reported loss increased because of the reason

That was mainly because of an unusually large loss on remeasuring earmarked settlement shares, IANS said. An astronomical gain of ₹1,611 crore had been chalked up for the June quarter. The higher loss has been recorded because of an adverse mark-to-market impact on the company's treasury assets, says Kotak Neo. The two accounts vary in the description of the exceptional item, and a check of the filing itself should be conducted. The loss after exceptional items dipped marginally to ₹5,513 crore from ₹5,562 crore.

Operating metrics

Customer ARPU was up 10 per cent to ₹198 from ₹180 last year due to customer upgrades. Blended ARPU was ₹178, against ₹167 a year ago. Subscribers increased by 194.4 million from 193.1 million in the June quarter.

The EBITDA margin narrowed to 41.9% from 43.1% while the same margin registered a sequential decline of 1.1% to ₹4,981 crore.

Funding

The company raised an additional ₹4,000 crore in Q2, bringing the total amount of funds raised so far for two quarters of the current financial year to ₹10,500 crore, comprising ₹6,400 crore in Q1, via warrants and fund- and non-fund-based facilities. It is anticipating further orders for capex investments to expand its networks.

Market and outlook

The stocks had settled 0.9% up at ₹12.98 on the BSE, prior to the results announcement. The trend of the company is positive with increasing ARPU and insignificant subscriber additions. 70% of the reported earnings are from finance costs and non-cash exceptional items, which makes the loss a large percentage of revenue.