1. At a Glance – Blink and You’ll Miss the Drama
Vodafone Idea Ltd is trading at ₹9.83, carrying a market cap of ₹1,06,501 crore, and somehow still breathing in one of the most brutal telecom markets on the planet. Q3 FY26 came in with Revenue of ₹11,323 crore, EBITDA of ₹4,817 crore, and a net loss of ₹5,286 crore. Operating margin is a spicy ~43%, but interest cost and depreciation together behave like unpaid credit card bills that never stop calling.
ARPU stands at ₹146, subscriber base at ~193 million, and AGR dues (subject to reassessment) are frozen at ₹87,695 crore. Yes, frozen — not forgiven. Debt is ₹2.33 lakh crore, net worth is deeply negative, and the Government of India is now the largest shareholder (~49%), which tells you exactly how “free-market” this situation is.
The stock has delivered +42% return in 6 months, which says more about retail hope than balance-sheet health. This is not a telecom company anymore — it’s a live case study in financial endurance. Curious already? You should be.
2. Introduction – A Telecom Tragedy in Three Acts
Once upon a time, there were many telecom operators. Then there were fewer. Then there were basically two and a half, and Vodafone Idea became the “half.”
Vodafone Idea Ltd is the result of a merger that looked logical on Excel but cruel in real life. Since then, it has been fighting three enemies simultaneously:
- Jio’s pricing warfare,
- Airtel’s premium positioning, and
- India’s regulatory imagination (AGR).
Yet, VIL hasn’t packed its bags. Instead, it has doubled down on survival: raising ₹18,000 crore via FPO, issuing ₹3,300 crore of NCDs, slowing subscriber losses, and squeezing EBITDA margins like a last drop of toothpaste.
This is not a growth story. This is a “can we stay alive long enough for
the industry to behave rationally” story. And strangely, the market is listening.
3. Business Model – WTF Do They Even Do?
At its core, Vodafone Idea does what all telcos do:
- Sell voice + data
- Upsell VAS, enterprise services, broadband
- Pray for ARPU hikes
- Negotiate with the government like it’s a family dispute
It operates across ~487,000 towns and villages, has ~8,030 MHz spectrum, 4.17 lakh broadband sites, and 301,850 km of optical fiber. On paper, this is a monster network. In cash-flow terms, it’s a hungry one.
The strategy is now laser-focused on 17 priority circles contributing ~98% of revenue. Translation: no more ego-driven pan-India domination. Just survive where money actually comes from.
Question for you: would you rather be everywhere and broke, or selective and alive?
4. Financials Overview – The Numbers Don’t Lie, They Just Hurt
Quarterly Performance Table (₹ crore)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 11,323 | 11,117 | 11,195 | 1.9% | 1.1% |
| EBITDA | 4,817 | 4,712 | 4,684 | 2.2% | 2.8% |
| PAT | -5,286 | -6,609 | -5,524 | 20.0% | 4.3% |
| EPS (₹) | -0.49 | -0.95 | -0.51 | NA | NA |
Average EPS (Q1–Q3 FY26) ≈ (-0.95 – 1.03 – 0.49) / 3 = -0.82
Annualised EPS ≈ -3.3
Yes, still negative. But less ugly than before.
EBITDA is growing slowly, losses are narrowing, but interest + depreciation continue to eat the
