Vodafone Thought Restricted (VIL), the third-largest Indian telecom operator, has lately introduced Q1 FY26 outcomes. Issues are very attention-grabbing right here, and on the similar time, they aren’t. Vi’s CEO, Akshaya Moondra mentioned that they noticed 90% decrease subscriber loss in comparison with Q2 and Q3 of the final monetary yr, however that looks as if a really targeted method of discovering a constructive needle in a haystack of negatives. Whereas there’s nothing improper with that (an organization would not outright come and say we’re in a tough place), we have to see what are the challenges that the telco nonetheless faces and what does not sit proper with the Q1 outcomes.
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Vodafone Thought Q1 FY26 Loss Widens In comparison with Earlier Quarter
Vodafone Thought’s Q1 FY26 loss widened to Rs 6,608 crore in comparison with Rs 6,432 crore within the earlier quarter. This occurred regardless of rising common income per consumer (ARPU) and 4G/5G subscriber base. We’ll come to ARPU quickly sufficient. The EBITDA margin has fallen from 42.3% to 41.8% QoQ (Quarter on Quarter). The revenues stayed virtually flat at Rs 11,022 crore. That is regarding.
Vodafone Thought Sees ARPU Enchancment, 4G/5G Susbcriber Base Goes Up
In Q1 FY26, Vodafone Thought noticed that its cell buyer ARPU went as much as Rs 177 from Rs 175 within the earlier quarter. For the final three quarters, the ARPU has shuffled from Rs 173 to Rs 177. This isn’t ok, particularly when the costs of Vi’s plans are at par with Airtel. Regardless of that, the telco is barely even registering any ARPU progress. That is regarding too.
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Let’s now speak in regards to the 4G/5G subscriber base. The 4G inhabitants protection went up from 82.7% within the earlier quarte to 84.1% in Q1 FY26. That is respectable, and the overall 4G/5G subscriber base elevated from 126.4 million to 127.4 million, which is once more, barely any progress. To see any materials progress in ARPU, Vi wants to extend its 4G/5G subscriber base. For that, the telco is investing within the networks.
Nonetheless, the ARPU and 4G/5G subscriber progress just isn’t good, and it’s positively a ache for the administration, nevertheless it must be resolved, quick.
Vodafone Thought Blended Churn
Vodafone Thought’s blended churn charge was 4.1% throughout Q1 FY26, which is similar because the earlier quarter. This implies the telco did not arrest the subscriber loss. The churn charge continues to be above 4%, regardless of bettering the networks signficantly, that means one thing just isn’t figuring out properly for Vi. The common information utilization is rising, however that is seemingly due to the free 5G information and limitless 4G information too.
Other than the blended churn, there’s another concern and that’s lively customers.
Vodafone Thought’s Lively Consumer Base
Vodafone Thought’s lively consumer base fell from 175.3 million within the earlier quarter to 172.7 million in Q1 FY26. This isn’t good. Additional, the general subscriber base can also be now under 200 million, at 197.7 million, and it retains declining. With the issues round elevating additional cash, Vi will not be capable to compete with Airtel and Jio within the community expertise division, no less than, not any time quickly.
One good factor that occurred for Vi was a rise of postpaid customers from 25.6 million within the earlier quarter to 26.6 million in Q1 FY26. However all the things, issues do not look good in any respect for Vi. The telco is now genuinely struggling, and there appears to be no hope for the corporate from the federal government for any additional assist. So what’s the main downside?
Is it the communications from the corporate in regards to the community enchancment? We do not assume so, as a result of the communications and updates from Vi about developments are on level and preserve coming at common intervals. Is it jus the community expertise, or is it the final sentiment out there in regards to the firm now? Perhaps it’s none of those, or it is all of them. The factor is, with the deferred AGR (adjusted gross income) funds quickly going to be payable, Vi wants a miracle to maintain itself afloat.
