Vodafone Idea Limited (VIL), the third-largest telecom operator, recently posted results for Q2 FY26. The telco posted a narrowed net loss of Rs 5,525 crore. While it is still a loss, the figure is much lower compared to the previous quarters. The EBITDA (earnings before interest, tax, depreciation and amortisation) was almost the same as the previous quarter, both in absolute figures and the percentage wise. The reason why the telco posted a lower net loss during the quarter was the lower amount of interest and finance costs during the quarter.
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The interest and finance cost during the quarter was Rs 4,682 crore, much lower compared to Rs 5,751 crore in the previous quarter. The telco's overall subscriber base continued to decline. The blended churn rate was 4.3%, which was higher than the previous two quarters. The telco has been pushing its capex (capital expenditure) as fast and heavy as possible to ensure that it can match up with the competition. The total broadband sites for the telco has jumped from 4,39,599 at the end of Q2 FY25 to 5,27,012 at the end of Q2 FY26. This is a huge jump in number, and would only continue to go up as the telco continues with its high capex cycle for the coming two years.
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The only issue that Vodafone Idea (Vi) is facing right now is the problem of funds. The telco has been trying to raise funds for a long time and yet it hasn't been able to as there's very less trust in the company right now. The government's decision on the AGR (adjusted gross revenue) matter will likely drive the decision of the banks and the debt providers to provide funds to Vi.
