Vi Q2 loss reaches Rs 5,975 crore as equity deficit deepens

Vi reported a Rs 5,975 crore loss after tax in Q2FY27, versus a Rs 5,524 crore loss a year earlier, while total equity moved to negative Rs 44,298 crore at 30 September 2026 from negative Rs 35,758 crore at 31 March 2026. Revenue from operations rose 6.2% year on year to Rs 11,884 crore.

Why did Vi report a Rs 5,975 crore loss in Q2FY27?

Vi reported a Rs 5,975 crore loss after tax because EBITDA did not cover depreciation, amortisation, interest and financing costs, and the quarter included a Rs 462 crore exceptional loss. The Q2FY27 loss was higher than the Rs 5,524 crore loss in Q2FY26 and the Rs 3,754 crore loss in Q1FY27.

EBITDA was Rs 4,981 crore in Q2FY27, while depreciation and amortisation totalled Rs 5,505 crore, resulting in an earnings before interest and tax loss of Rs 524 crore. Net interest and financing cost was Rs 4,975 crore, compared with Rs 4,683 crore in Q2FY26, and the resulting pre-tax loss was Rs 5,961 crore before a Rs 14 crore tax expense.

The exceptional item was an adverse mark-to-market movement in treasury assets, according to management. Vi recorded exceptional income of Rs 38 crore in Q2FY26 and Rs 1,611 crore in Q1FY27, whereas Q2FY27 carried an exceptional loss of Rs 462 crore; profit after tax adjusted for exceptional items was a loss of Rs 5,513 crore, compared with a Rs 5,562 crore loss a year earlier.

Did Vi's operating performance improve in Q2FY27?

Vi's revenue and cash EBITDA increased year on year in Q2FY27, although EBITDA margin moderated from the preceding quarter. Revenue rose by Rs 689 crore from Rs 11,195 crore in Q2FY26 to Rs 11,884 crore, while EBITDA increased by Rs 296 crore to Rs 4,981 crore.

Cash EBITDA before Ind AS 116 was Rs 2,498 crore, up 11.2% from Rs 2,246 crore in Q2FY26. Its margin rose to 21.0% from 20.1% a year earlier but was below the 21.2% recorded in Q1FY27; management said the year-on-year increase reflected improved cost management.

EBITDA margin was 41.9% in Q2FY27, unchanged from Q2FY26 but down from 43.1% in Q1FY27. Operating expenditure increased by Rs 248 crore sequentially to Rs 6,903 crore, while revenue rose by Rs 195 crore; management attributed the sequential margin moderation to annual increments and brand-refresh marketing.

Customer average revenue per user, excluding machine-to-machine connections, increased 9.7% year on year to Rs 198 from Rs 180. Vi ended Q2FY27 with 131.0 million 4G and 5G subscribers, up from 127.8 million a year earlier, while data usage rose 27.1% to 93.6 petabytes a day.

How much did Vi's equity deficit increase by September 2026?

Vi's total equity deficit deepened by Rs 8,540 crore in the six months to 30 September 2026, reaching negative Rs 44,298 crore from negative Rs 35,758 crore at 31 March 2026. Equity share capital remained Rs 108,343 crore, while other equity declined to negative Rs 152,641 crore from negative Rs 144,101 crore.

Total assets rose by Rs 5,771 crore to Rs 197,409 crore over the same period. Non-current assets increased by Rs 4,247 crore to Rs 174,009 crore, with property, plant and equipment, including right-of-use assets, rising by Rs 6,954 crore to Rs 71,194 crore and intangible assets increasing by Rs 9,662 crore to Rs 88,508 crore.

Intangible assets under development fell to Rs 65 crore at 30 September 2026 from Rs 13,820 crore at 31 March 2026. Current assets increased by Rs 1,524 crore to Rs 23,400 crore, including cash and cash equivalents of Rs 3,967 crore, compared with Rs 2,106 crore at 31 March 2026, and current investments of Rs 1,425 crore, compared with Rs 107 crore.

Non-current liabilities stood at Rs 195,771 crore at 30 September 2026, up from Rs 187,707 crore six months earlier. Current liabilities rose to Rs 45,936 crore from Rs 39,689 crore, and total equity and liabilities matched total assets of Rs 197,409 crore.

Which Vi obligations increased by September 2026?

Vi's non-current deferred payment obligations increased by Rs 4,501 crore to Rs 146,974 crore at 30 September 2026, while non-current lease liabilities rose by Rs 5,793 crore to Rs 42,014 crore. These two balances were Rs 142,473 crore and Rs 36,221 crore, respectively, at 31 March 2026.

Several current obligations also increased during the six-month period. Short-term borrowings from banks and others rose to Rs 3,091 crore from Rs 726 crore, other current financial liabilities rose to Rs 17,013 crore from Rs 14,431 crore, and other current liabilities increased to Rs 6,589 crore from Rs 5,597 crore.

Non-current loans from banks and others moved in the other direction, declining to Rs 1,134 crore from Rs 3,275 crore. Bank balances other than cash and cash equivalents fell to Rs 1,361 crore from Rs 3,625 crore, while trade receivables rose to Rs 2,195 crore and trade payables increased to Rs 8,868 crore.

Vi also reported 610,521 broadband sites at the end of Q2FY27, compared with 527,012 in Q2FY26. Unique broadband towers increased to 213,616 from 191,096, and the presentation described the quarterly addition as the highest in nine quarters without disclosing a future spending target.

Conclusion

Vi's Q2FY27 results show operating progress alongside continued pressure on reported earnings and net worth. Revenue rose 6.2% to Rs 11,884 crore, cash EBITDA increased 11.2% to Rs 2,498 crore and customer average revenue per user reached Rs 198, but a Rs 5,505 crore depreciation and amortisation charge, Rs 4,975 crore financing cost and Rs 462 crore exceptional loss led to a Rs 5,975 crore quarterly loss.

The unresolved balance-sheet issue is the negative Rs 44,298 crore total equity position at 30 September 2026, alongside Rs 146,974 crore of non-current deferred payment obligations and Rs 42,014 crore of non-current lease liabilities. The next results will indicate whether Q2FY27's 1.3 million net customer additions, 93.6 petabytes of daily data usage and network expansion continue to lift operating cash generation.