Vodafone Idea Limited Q2 loss widens to Rs 5,975 crore

Vodafone Idea Limited reported a Rs 5,975 crore net loss in Q2FY27, versus Rs 5,524 crore a year earlier, while total equity turned more negative at Rs 44,298 crore at September 30, 2026. Revenue rose 6.2% year on year to Rs 11,884 crore, but depreciation, amortisation and finance costs exceeded EBITDA.

Why did Vi's reported Q2FY27 loss widen?

Vi's reported loss widened because an adverse mark-to-market effect on treasury assets added to costs below EBITDA. Management said the Rs 5,975 crore reported loss in Q2FY27 was higher than the Rs 5,524 crore loss in Q2FY26 for that reason. Pre-tax loss was Rs 5,961 crore, compared with Rs 5,527 crore a year earlier, while tax expense was Rs 14 crore.

The comparison differs after removing exceptional items. Loss adjusted for exceptional items narrowed to Rs 5,513 crore in Q2FY27 from Rs 5,562 crore in Q2FY26, according to management. The reported result also compares with a Rs 3,754 crore loss in Q1FY27, when exceptional items contributed Rs 1,611 crore, whereas Q2FY27 recorded a negative exceptional item of Rs 462 crore.

How did Vi's revenue and cash EBITDA change?

Vi increased revenue from operations to Rs 11,884 crore in Q2FY27, up 6.2% year on year and 1.7% quarter on quarter from Rs 11,689 crore. Cash earnings before interest, tax, depreciation and amortisation, or cash EBITDA, reached Rs 2,498 crore, rising 11.2% from Rs 2,246 crore in Q2FY26. This measure is stated before the Ind AS 116 lease-accounting effect.

Reported EBITDA was Rs 4,981 crore, 6.3% above Rs 4,685 crore a year earlier but below Rs 5,034 crore in Q1FY27. Operating expenditure rose to Rs 6,903 crore from Rs 6,510 crore a year earlier and Rs 6,655 crore sequentially. As a result, reported EBITDA margin was 41.9%, down from 43.1% in Q1FY27, while cash EBITDA margin was 21.0%, versus 20.1% in Q2FY26.

Which costs kept Vi in a quarterly loss?

Vi remained loss-making because Q2FY27 depreciation and amortisation of Rs 5,505 crore and net interest and financing cost of Rs 4,975 crore together totalled Rs 10,480 crore. That was more than twice the Rs 4,981 crore reported EBITDA, producing an earnings before interest and tax, or EBIT, loss of Rs 524 crore. Depreciation and amortisation alone exceeded EBITDA by Rs 524 crore.

Both major charges stayed elevated against the prior year. Depreciation and amortisation declined modestly from Rs 5,568 crore in Q2FY26, but interest and financing cost increased from Rs 4,683 crore. Excluding Ind AS 116, management reported depreciation and amortisation of Rs 3,894 crore and net finance cost of Rs 3,684 crore in Q2FY27, showing that lease-accounting-related amounts form part of the reported expense totals.

How did Vi's balance sheet change by September 2026?

Vi's negative net worth increased by Rs 8,540 crore in the six months to September 30, 2026. Total equity moved to negative Rs 44,298 crore from negative Rs 35,758 crore at March 31, 2026, as other equity fell to negative Rs 152,641 crore. Equity share capital was unchanged at Rs 108,343 crore over the same period.

Total assets increased to Rs 197,409 crore from Rs 191,638 crore. Property, plant and equipment including right-of-use, or RoU, assets rose to Rs 71,194 crore from Rs 64,240 crore, while intangible assets increased to Rs 88,508 crore from Rs 78,846 crore. Intangible assets under development, however, declined to Rs 65 crore from Rs 13,820 crore.

What funding, liabilities and network plans did Vi disclose?

Vi reported cash and bank balances of Rs 5,470 crore at September 30, 2026, against bank debt of Rs 943 crore. In the balance sheet, cash and cash equivalents were Rs 3,967 crore and bank balances other than cash and cash equivalents were Rs 1,361 crore. Current investments increased to Rs 1,425 crore from Rs 107 crore at March 31, while short-term loans from banks and others increased to Rs 3,091 crore from Rs 726 crore.

Management said Vi had secured more than Rs 10,500 crore of funding through H1FY27, including warrants and fund- and non-fund-based facilities, with more than Rs 4,000 crore of incremental bank funding arranged in Q2FY27. Quarterly capital expenditure was Rs 3,946 crore, and the company had placed orders worth more than Rs 13,200 crore under its three-year capital-expenditure guidance. Deferred payment obligations were Rs 149,961 crore at September 30, comprising Rs 146,974 crore non-current and Rs 2,987 crore current.

How did Vi's customer and network indicators develop?

Vi added customers and increased average revenue per user, or ARPU, during Q2FY27. Total subscribers reached 194.4 million from 193.1 million in Q1FY27, while postpaid subscribers increased to 33.9 million from 27.9 million in Q2FY26. Customer ARPU excluding machine-to-machine, or M2M, connections increased to Rs 198 from Rs 180 a year earlier, which management attributed primarily to customer upgrades.

Network expansion accompanied that revenue trend. Vi ended September 2026 with 131.0 million 4G and 5G subscribers, compared with 127.8 million in Q2FY26, and data usage rose 27.1% year on year to 93.6 petabytes per day. The company said it added nearly 9,000 broadband towers in Q2FY27, bringing the total to 213,616, while 4G population coverage rose to 87.8% from 84.4% a year earlier.

Conclusion

Vi's Q2FY27 figures show that higher revenue, customer ARPU and cash EBITDA had not yet absorbed the scale of reported depreciation, amortisation and financing expenses. The Rs 5,975 crore quarterly loss added to accumulated losses, taking total equity to negative Rs 44,298 crore despite total assets increasing by Rs 5,771 crore over the six months.

The next disclosed operating marker is execution of the network plan funded by more than Rs 10,500 crore secured through H1FY27 and capital-expenditure orders above Rs 13,200 crore. Management expects planned investments to lift 4G population coverage in its 17 key circles to more than 95%; progress against that plan, alongside funding and finance-cost movements, remains relevant to subsequent results.