Following a management meeting, Citi said improving subscriber trends and average revenue per user (ARPU) indicate that Vodafone Idea’s network investments are beginning to translate into better customer acquisition, retention and monetisation.
The brokerage said discussions with the management largely centred on funding visibility and the pace of network rollouts, the sustainability of subscriber recovery and the scope for further organic ARPU growth.
On funding, Vodafone Idea management reiterated that recent progress, along with promoter support and relief on adjusted gross revenue (AGR) dues, has materially improved visibility on capital expenditure.
Management also expressed confidence that the remaining funding will be secured imminently, according to Citi.
Citi highlighted the improvement in Vodafone Idea’s operating metrics, with the company adding subscribers and reporting a further increase in ARPU.
Vodafone Idea’s ARPU rose to ₹195 in Q1 FY27 from ₹177 in the previous quarter, driven primarily by customer upgrades. ARPU increased 10.2% year-on-year.
The company’s subscriber base stood at 193.1 million as of June 30, compared with 192.8 million in Q4 FY26, marking the first quarter of net subscriber additions since the merger, according to the company.
Citi said these trends provide early evidence that network investments are helping improve customer acquisition, retention and monetisation.
Voda Idea Q1 numbers
Vodafone Idea reported a net loss of ₹3,754 crore in Q1 FY27, compared with a profit of ₹51,970 crore in the March quarter.
However, the sequential comparison is distorted by exceptional items. The previous quarter’s profit was largely driven by a ₹57,491 crore exceptional gain, while the June quarter included an exceptional gain of ₹1,611 crore.
Revenue increased 3.2% sequentially to ₹11,689 crore, while EBITDA rose 3% to ₹5,034 crore. The EBITDA margin remained broadly stable at 43.07%, compared with 43.14% in the previous quarter.
On a year-on-year basis, revenue grew 6%, while EBITDA increased 9.1%.
