Vodafone Idea Shares Down Despite Rs 51,970 Crore Q4 Profit; ARPU Hits Industry-High; Should You Buy Vi Stock?

Shares of Vodafone Idea Limited are trading lower after the telecom operator reported a sharp turnaround in its March quarter results, posting a consolidated net profit of Rs 51,970 crore for Q4 FY26 compared with a loss of Rs 7,166 crore in the same quarter last year.

Vodafone Idea Share Price Today After Q4 Results FY2026

Following the earnings announcement, Vodafone Idea shares declined on the National Stock Exchange of India (NSE). The stock was quoted at Rs 12.67, down 2.16% in morning trade on May 18 as of 10.05 am. During the session, the stock opened at Rs 12.74, touched an intraday high of Rs 13.05 and slipped to a low of Rs 12.45.

Vodafone Idea Q4 Results: AGR-Linked One-Time Gain Lifts Profit to Rs 51,970 Crore; Revenue and EBITDA Edge Higher

While the extraordinary accounting gain dominated the profit figure, Vodafone Idea also reported modest improvement in its core operating performance.

Revenue from operations rose 3% year-on-year to Rs 11,332 crore, compared with Rs 11,017 crore in Q4 FY25. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 4.9% to Rs 4,889 crore from Rs 4,659 crore a year earlier.

The company continued to benefit from higher tariffs and an improving customer mix, helping strengthen margins even as it remains burdened by substantial debt and regulatory liabilities.

Despite the headline profit, the surge was largely driven by a one-time accounting gain related to the reassessment of Adjusted Gross Revenue (AGR) liabilities and the recognition of the present value of future AGR payments. The company recorded exceptional items of Rs 57,491 crore during the quarter, which significantly boosted the bottom line.

Vodafone Idea ARPU Climbs to Rs 190, Highest in Industry

A key positive in the results was the continued rise in Average Revenue Per User (ARPU), a critical metric used to measure telecom profitability.

Vodafone Idea's ARPU increased to Rs 190 in the March quarter from Rs 175 in the same period last year, representing an annual growth of 8.3%. The company said this level is currently the highest in the Indian telecom industry.

The number of 4G and 5G subscribers also rose to 128.9 million from 126.4 million a year ago, indicating gradual improvement in customer quality and data adoption.

Vodafone Idea Network Expansion and 5G Rollout Gain Momentum

During FY26, Vodafone Idea accelerated investments to strengthen its network and improve customer experience.

The company launched Vi 5G services in 83 cities and expanded its 4G coverage by 48 million population, taking total 4G coverage to more than 86% of India's population. Data capacity on the 4G network increased by over 12% during the year.

Its broadband tower base grew to 202,008 sites after the addition of more than 17,300 new towers, underscoring a significant push to improve coverage and service quality.

Promoters Infuse Rs 4,730 Crore Through Warrants

To support its ongoing capital expenditure and network rollout, the board approved the issuance of fully convertible warrants worth Rs 4,730 crore to a promoter entity of the Aditya Birla Group on a preferential basis.

Each warrant will be convertible into one equity share, strengthening promoter commitment and providing additional funding for future investments.

Capital expenditure for FY26 stood at Rs 8,742 crore, reflecting the company's continued focus on network modernisation and capacity expansion.

Vodafone Idea Full-Year FY26 Results: Revenue Rises to Rs 44,873 Crore; Core Business Metrics Improve on Stronger ARPU

For the full financial year ended March 31, 2026, Vodafone Idea reported revenue of Rs 44,873 crore, up 3% from the previous year. Annual EBITDA rose 4.8% to Rs 19,003 crore from Rs 18,127 crore in FY25.

Management said the improving operating metrics, ongoing network investments and promoter funding support are laying the groundwork for a gradual business recovery.

Should You Buy Vodafone Idea Stock? Check Motilal Oswal's Target Price and Rating

Brokerage Motilal Oswal Financial Services has maintained a Neutral rating on Vodafone Idea with a target price of Rs 13.

At the current market price of around Rs 12.67, the stock is trading close to the brokerage's fair value estimate, suggesting limited upside in the near term. While operational indicators such as ARPU, subscriber additions and 5G rollout are improving, the company continues to face a large debt burden and intense competition from stronger rivals.

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