Vodafone Idea Returns To Profit After Six Years, AGR Relief Pushes Q4 Net Profit Near ₹52,000 Crore

Mumbai: Telecom operator Vodafone Idea posted a consolidated net profit of Rs 51,970 crore for the January-March quarter of FY26.

This is the company’s first profit in nearly six years. In the same quarter last year, Vodafone Idea had reported a loss of Rs 7,167 crore.

The sharp jump in profit mainly came due to a major reduction in the company’s statutory liabilities related to adjusted gross revenue (AGR) dues.

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AGR Relief Boosts Earnings

The Department of Telecommunications (DoT) had earlier informed Vodafone Idea that its AGR dues stood at Rs 87,695 crore as of December 31, 2025.

Later, after reassessment by a special committee, the dues were revised down to Rs 64,046 crore for the period between FY07 and FY19.

Following this revision, Vodafone Idea reduced its financial liability from Rs 80,502 crore to Rs 24,880 crore.

The company said the difference amount of around Rs 55,622 crore was credited to its profit and loss statement, leading to the huge quarterly profit.

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Core Business Still Under Pressure

Despite reporting a record profit, Vodafone Idea’s core business operations remained weak.

Before considering exceptional gains from AGR relief, the company posted an operational loss of around Rs 5,515 crore during the quarter.

For the full financial year FY26, operational losses stood at about Rs 24,059 crore.

Revenue and Customer Base Improve

Vodafone Idea’s revenue from operations rose nearly 3 per cent to Rs 11,332 crore during the quarter.

The company also saw some stability in its subscriber base after facing customer losses for several years.

Its total subscriber base stood at 19.28 crore users during the quarter.

The average revenue per user (ARPU) increased to Rs 190, helped by customers upgrading to higher-value plans. Though it remained the lowest among private telecom operators, the yearly growth in ARPU was the highest in the industry at 8.3 per cent.

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Debt Burden Still High

As of March 31, 2026, Vodafone Idea’s deferred payment obligations remained very high.

The company owed Rs 1.27 lakh crore towards spectrum liabilities and Rs 25,254 crore towards AGR dues.

Vodafone Idea also spent Rs 8,742 crore on capital expenditure during FY26 as it continued network expansion and upgrades.

Vodafone Idea Returns To Profit After Six Years, AGR Relief Pushes Q4 Net Profit Near ₹52,000 Crore

Vodafone Idea reported its first profit in nearly six years after a major reduction in AGR dues lowered its liabilities. The telecom company posted a huge Q4 profit of Rs 51,970 crore, though its core business operations continued to remain under pressure during FY26.