Vodafone Idea Share Price Drop 4% Despite ₹51,970 Crore Q4 Profit

By Ventura Research Team 2 min Read May 18, 2026

Vodafone Idea share price falls after Q4 earnings announcement

Summary:
Vodafone Idea shares fell nearly 4% despite reporting a ₹51,970 crore Q4 profit, as the gain was largely driven by a one-time AGR liability reassessment. Investors remained cautious due to weak operational performance, muted revenue growth, and continued debt obligations.

Shares of Vodafone Idea fell nearly 4% to an intraday low of ₹12.47 on Monday after the telecom operator reported its Q4FY26 earnings. Investors remained cautious as the reported profit was largely driven by a one-time AGR-related accounting gain, while revenue growth stayed muted.

AGR Relief Boosts Bottom Line

Vodafone Idea posted a consolidated net profit of ₹51,970 crore in Q4FY26 against a loss of ₹7,166 crore in the year-ago period. The jump came after the Department of Telecommunications reassessed the company’s AGR dues.

The government reduced Vodafone Idea’s AGR liability to ₹64,046 crore from ₹87,695 crore as of December 31, 2025. Following the reassessment, the company derecognised a liability of ₹80,502 crore and recognised a revised liability of ₹24,880 crore, resulting in a gain of ₹55,622 crore credited to the profit and loss account.

However, excluding exceptional items, the company reported an operational loss of around ₹5,515 crore during the quarter.

Revenue and ARPU Show Limited Growth

Revenue from operations rose 3% YoY to ₹11,332 crore from ₹11,017 crore. EBITDA increased 4.9% to ₹4,889 crore.

ARPU improved 8.3% YoY to ₹190 from ₹175, driven by tariff hikes and customer upgrades. The company said this was the highest ARPU growth in the industry, although its ARPU remained lower than private peers.

Subscriber Base and Network Expansion

Vodafone Idea’s 4G and 5G subscriber base increased to 128.9 million from 126.4 million a year ago, while the total subscriber base stood at 19.28 crore.

The company expanded 5G services to 83 cities and increased 4G coverage by 48 million people, taking total population coverage above 86%. Unique broadband towers rose to 2,02,008 after adding over 17,300 towers during FY26.

Capex during FY26 stood at ₹8,742 crore, including ₹2,294 crore in Q4.

Fundraising Plan Approved

The board approved raising ₹4,730 crore through issuance of up to 430 crore fully convertible warrants to Suryaja Investments Pte. Ltd., an Aditya Birla Group entity, at ₹11 per warrant.

As of March 31, 2026, Vodafone Idea’s deferred obligations stood at ₹1,27,360 crore towards spectrum dues and ₹25,254 crore towards AGR liabilities.