MUMBAI, August 10 (Reuters) – Vodafone Idea, India’s third-largest telecommunications operator, announced a significant reduction in its first-quarter loss on Monday, attributing the improvement to a rise in average revenue per user (ARPU) as more subscribers transition to higher-value 4G and 5G services.
The indebted company reported a consolidated net loss of 37.54 billion rupees ($393.91 million) for the quarter ending June 30. This marks a substantial narrowing from the 66.08 billion rupees loss recorded in the same period last year.
Vodafone Idea has been actively increasing its investments in its 4G and 5G network infrastructure. This push comes after securing new funding from its promoters and receiving government relief on its outstanding telecom dues, with the aim of closing the gap with dominant rivals Reliance Jio and Bharti Airtel.
After years of losing market share due to under-investment, Vodafone Idea previously indicated that sustained network investments had begun to slow subscriber attrition. The company had projected monthly subscriber additions to turn positive from February 2026.
Notably, the wireless carrier’s user base grew to 193.1 million from 192.8 million in the preceding quarter. This represents the first quarter of positive net subscriber addition for Vodafone Idea since the merger of Vodafone India with Idea Cellular.
The company’s ARPU, a crucial metric in the telecom industry, increased by 10.2% year-on-year to 195 rupees. This growth was primarily driven by a 2.1% increase in its 4G and 5G user base, although its ARPU still lags behind its competitors.
In comparison, rivals Jio and Airtel had previously reported quarterly profit increases of 7% and 37%, respectively, also boosted by higher ARPU.
Vodafone Idea, which is 49% owned by the Indian government, was formed in 2018 through a merger between the Indian arm of the UK’s Vodafone Group and Aditya Birla Group’s Idea Cellular. The company has largely remained loss-making since its formation and continues to carry a significant debt burden.
Overall, Vodafone Idea’s revenue rose approximately 6% to 116.89 billion rupees, surpassing analysts’ average estimate of 114.86 billion rupees. Concurrently, the company’s total expenses decreased by 3% to 172.42 billion rupees.
