Vodafone Idea Unveils ₹45,000 Cr Plan Post Q3 Results

Introduction

Vodafone Idea (Vi) has outlined a significant capital expenditure plan of ₹45,000 crore over the next three years, signaling a strategic shift from survival to sustainable growth. The announcement followed the company's third-quarter financial results for fiscal year 2026, where it reported a narrowed consolidated net loss of ₹5,286 crore. This move is aimed at enhancing network coverage and competitiveness against rivals in the Indian telecom market.

A Renewed Focus on Growth

During the Q3 FY26 earnings call, CEO Abhijit Kishore detailed the company's ambitious investment strategy. The ₹45,000 crore infusion is in addition to the ₹18,000 crore already invested over the past six quarters. The primary objective is to expand network coverage and bring it to parity with competitors, particularly in 17 of its 22 telecom circles. These 17 priority markets are crucial as they contribute 99.2% of the company's revenue. The plan is to achieve absolute parity in these markets within the next 12 to 24 months.

Network Expansion and 5G Rollout

The investment will fund an aggressive network rollout, focusing on both 4G and 5G services. Kishore stated that the company aims to cover all urban and rural markets across the country with 5G services within the next 30 months. 'Urban' is defined as towns with a population of 20,000 or more. Alongside the 5G expansion, Vi will also work on bridging the existing gap in its 4G coverage to provide a more consistent user experience. This comprehensive network upgrade is central to the company's goal of tripling its operating income (EBITDA) in the next three years.

Q3 FY26 Financial Performance

Vodafone Idea's financial results for the quarter ended December 2025 showed signs of stabilization. The consolidated net loss narrowed to ₹5,286 crore, an improvement from previous quarters. Consolidated revenue from operations remained largely flat, standing at ₹11,323 crore compared to ₹11,117 crore in the same quarter of the previous year. The stability in revenue was supported by a notable increase in the Average Revenue Per User (ARPU), a key industry metric.

Key Financial and Operational Metrics (Q3 FY26)

Subscriber Trends and ARPU Growth

While the overall subscriber base saw a year-on-year decline of 3.4% to 19.29 crore, the company witnessed positive trends in its high-value segments. The postpaid subscriber base grew by a healthy 14.2% to 2.88 crore. Similarly, the 4G and 5G subscriber count increased to 12.85 crore. This shift towards a more premium subscriber mix contributed to the 7.3% year-on-year rise in ARPU, which reached ₹186. The growth in ARPU reflects the company's success in encouraging customer upgrades and better monetization of its services.

Leadership's Vision and Future Ventures

Aditya Birla Group Chairman, KM Birla, expressed confidence in the company's future, stating that Vi will now look beyond survival and focus on sustainable growth. He emphasized the importance of having three private telecom players for India's digital future. In addition to terrestrial networks, Vi is also exploring satellite communication (satcom) services through a tie-up with AST. CEO Abhijit Kishore noted that while the service is still about 18 to 24 months away, the company is committed to developing its non-terrestrial network to serve remote and difficult-to-reach areas.

Market Reaction

Following the announcements, Vodafone Idea's stock is expected to be actively traded. On January 27, the share price moved down by 1.01% to close at ₹9.83. The company's market capitalization stands at ₹1,06,501 crore. The successful execution of its fundraising and investment plans will be critical for regaining investor confidence and market share.

Conclusion

Vodafone Idea's plan to invest ₹45,000 crore marks a pivotal moment in its turnaround journey. By focusing on aggressive network expansion, achieving competitive parity, and improving user experience, the company aims to secure a sustainable future. While challenges related to debt and intense competition remain, the narrowed losses and a clear strategic roadmap provide a foundation for potential recovery and growth in the coming years.