# 1. Financial Performance ## A. Key Figures * Revenue: ₹110.2 billion (+4.9% YoY) * **Cash EBITDA:** **₹2,180 Cr** (+7% YoY) · **Reported EBITDA:** **₹4,610 Cr** (vs. ₹4,200 Cr prior) * **Consumer ARPU:** **₹177** (+9% YoY) * **Bank Debt:** **₹1,930 Cr** (down ₹400 Cr QoQ) * **Net Debt Change:** **+₹7,000 Cr** QoQ (from Q4 to Q1) ## B. Revenue Growth * **Strong ARPU-Driven Growth:** Revenue expansion supported by **9% YoY growth in Consumer ARPU**, signaling pricing discipline and improved monetization. ## C. EBITDA Margins * **EBITDA Rebound:** Reported EBITDA rose significantly year-on-year, while cash EBITDA showed moderate growth amid high depreciation and finance costs. * **Cost Structure Pressure:** Depreciation & amortisation remained elevated at **₹5,470 Cr**, with net finance costs at **₹5,750 Cr**, partially attributable to IndAS 116. ## D. Bank Debt Reduction * **Balance Sheet Management:** Active deleveraging in bank debt demonstrates commitment to financial discipline, reducing exposure by **₹400 Cr** during the quarter. ## E. Cash Flow Usage * **Cash Outflow Dynamics:** Despite EBITDA generation and stable Capex, net debt rose sharply due to timing lag in **cash outflows for capital expenditure** and drawdown in cash balances. --- # 2. Subscribers & ARPU ## A. Key Figures * Postpaid Additions: ~1.1 Mn QoQ, driven largely by M2M * Churn Trend: Subscriber loss reduced to 0.5 million in latest quarter from 5 million in prior periods * Data Traffic: +10.4% YoY overall · +11.2% YoY per 4G user ## B. 4G Subscriber Trends * **Recovery Momentum:** 4G subscriber growth is accelerating and outpacing total base trends, signaling a strong rebound post-price hike with no lag effect. * **Growth Decoupled from Total Base:** Management emphasizes 4G additions and overall net losses are independent metrics, with 4G being the key indicator of health. * **Network-Led Improvement:** Expanding 4G/5G coverage and enhanced customer experience are driving the best subscriber metrics since merger, sustained over **2 quarters**. ## C. Postpaid & M2M Growth * **M2M-Driven Expansion:** Postpaid growth is robust and primarily fueled by rapid M2M/IoT metering adoption, particularly in automatic metering infrastructure. * **Selective Consumer Growth:** Consumer postpaid is growing, though PoS deployments remain volatile despite ongoing expansion. ## D. Churn Improvement * **Churn Reversal Confirmed:** After a post-hike spike, churn has moderated and reversed from January, supported by porting data and improving network quality. * **Sustained Decline in Losses:** Net subscriber outflows have trended down sharply over recent quarters, now at minimal levels. * **5G as Future Retention Lever:** While 5G devices haven’t impacted past churn, 5G network availability is boosting sentiment and expected to further reduce attrition. ## E. ARPU & Usage Trends * **Stable Data Engagement:** Data traffic per 4G user shows resilient growth, with QoQ data usage up **4%**, reflecting effective plan design and rising engagement. --- # 3. Network & Capacity ## A. Key Figures * **4G Population Coverage:** **~84%** (up ~7 pts) * **4G Data Capacity:** **~36% growth** * **4G Speeds:** **~24% improvement** * **Capex (Q1FY26):** **₹2,440 Cr** * **New 4G Towers:** **>4,800** added * 4G Site Ratio: 2.7x (up from 2.3x) * **Total Broadband Sites:** **~516,200** * **Massive MIMO Sites:** **~13,100** * **Small Cells:** **>12,300** ## B. 4G Coverage Expansion * **Near-Term Coverage Target:** On track to achieve competitive 4G coverage by end-September, with strong momentum in capacity utilization and user experience. * **Network-Led Growth:** Ongoing infrastructure investments are driving measurable improvements in speeds and subscriber metrics, with replication of regional success strategies underway. ## C. 5G Rollout Progress * **Phased 5G Launch:** Services rolled out in 22 cities across 13 circles since March 2025, with major expansion from June–July; full impact on subscriber trends not yet visible. * **Dual Benefit of 5G:** Enables 5G device access in key urban centers while enhancing overall network capacity, resulting in improved 4G performance through traffic offload. * **Market Share Uptick:** Early evidence of rising 5G device market share on the company’s network post-launch in Mumbai. ## D. Site Count & Density * **Record Densification:** Achieved highest-ever 4G site density (7x ratio), reflecting aggressive network build-out and improved spectral efficiency. * **Capex Focus Shifts to 5G:** While total site count stands at **197,000**, near-term additions will be limited as deployment prioritizes 5G rollout and capacity upgrades at existing locations. * **Long-Term Site Target:** Aims to expand to **215,000–220,000 sites**, supporting future capacity and coverage demands. ## E. Network Performance * **Positive Rub-Off Effect:** New site rollouts are generating revenue growth both on new and existing sites, confirming strong network-led monetization potential. --- # 4. Product & Service Innovation ## A. Key Figures * **International Roaming Coverage:** **144 countries** (+15) * **Truly Unlimited Roaming:** **40 countries** (+11) * **AI Spam Detection:** **45 crore SMS flagged** (H1) * Smart Meter Contract: 5 million units (10-year) * **MSME Digital Adoption:** **76%** planning increased digital investment ## B. Consumer Plans * **Pan-India Rollout of Non-Stop Hero:** Unlimited 24x7 data now available nationwide, reinforcing leadership in **unlimited data and rollover up to 400GB**—a unique market proposition. * **Enhanced Subscriber Value via Vi Guarantee:** Expanded benefits include **additional annual data for 4G/5G users** and **extra validity for unlimited voice recharges**, boosting retention and engagement. * **Innovation in User Safety:** Launched **country-of-origin caller ID for international calls** and AI-driven spam/fraud detection, with **industry recognition at Cannes Lions and Afaqs** for safety and cultural impact. * **Limited-Time 5G Offer Phased Out:** Introductory INR 299 plan withdrawn in Mumbai and set for broader discontinuation as part of pricing discipline. ## C. Enterprise Offerings * **Strategic Leap into Satellite Broadband:** Collaboration with **AST SpaceMobile** enables direct-to-smartphone connectivity, targeting rural inclusion without hardware upgrades—potentially transformative for underserved markets. * **Enterprise Tech Expansion:** Launched **AI-powered CCaaS platform** with Genesys and Startele, expanded **Google Workspace integration**, and secured **HPE managed services partnership**, strengthening cloud, security, and digital workplace solutions. * **IoT Leadership Validated:** Landed **India’s largest smart metering contract** (5 crore units) and introduced **eSIM partnership with Airtel** and a new **Device Management System**, enhancing scalability and resilience in IoT deployments. * **Bullish Enterprise Outlook Despite Capital Constraints:** Incoming executive Abhijit Kishore affirms confidence in **shifting from telco to techco**, leveraging Vodafone Group’s global enterprise expertise—especially in **IoT and cloud**—to capture high-growth B2B opportunities. ## D. Digital Ecosystem * **Vi App as a Super-Platform:** Evolving into a **multi-utility digital hub** with gaming, eSports, bill payments, shopping, and **Vi Finance**—now offering **Personal Loans, FDs, and Credit Cards** via partnerships like Aditya Birla Capital. * **Monetization Through Ecosystem Integration:** Focus on **partner-driven digital services** to deepen engagement and unlock incremental revenue, supported by seamless financial product access and cross-category experiences. ## E. OTT & Content * **Vi Movies & TV Gains Traction:** Platform now integrates **20+ OTT apps and 350+ live channels**, including recent addition of **Amazon MX Player**, with bundled data plans driving consumption. * **Positioning as Preferred Content Aggregator:** Strong 15-month adoption trend supports ambition to become a **one-stop destination for video and live content**, with ongoing feature and content expansion. --- # 5. Funding & Capital Access ## A. Key Figures * Deferred Payment Obligation Derecognition: ₹369.5 billion (due to spectrum dues-to-equity conversion) * **Bank Debt:** **₹1,930 Cr** as of June 30, 2025 * **Government Liabilities:** **₹119,000 Cr** spectrum + **₹76,000 Cr** AGR = **₹195,000 Cr** total * **FPO & Funded Capex Timeline:** FPO-funded Capex fully utilized by **September 2025** * **Operational Cash Flow Capacity:** ~**₹2,100–2,200 Cr/quarter** post-debt servicing ## B. Debt Financing Status * **Funding Momentum:** Debt financing efforts accelerated following spectrum dues conversion to equity and credit rating upgrade, enabling lower finance costs and improved lender confidence. * **Bank Engagement Ongoing:** Discussions with banks progressing, though disbursements await **clarity on AGR resolution**; company actively pursuing resolution ahead of March deadline. * **Capex Funding Dependency:** Future large-scale network expansion contingent on securing new funding, with focus on both bank and **non-banking sources** to maintain investment momentum. ## C. AGR Clarity Risk * **High-Stakes Uncertainty:** AGR liability remains unresolved, creating a key gating factor for bank funding despite government’s status as largest stakeholder and history of supportive interventions. * **Confidence in Resolution:** Management expresses confidence in an imminent AGR settlement, citing precedent of past government relief measures including instalment deferments and prior dues-to-equity conversions. ## D. Capex Funding Sources * **Near-Term Capex Covered:** Current capital spending supported by new funding and FPO proceeds, with internal cash flow providing incremental capacity in second half of fiscal year. * **Scalability Hinges on Funding Mix:** Expansion beyond current plans (e.g., to **205,000 sites**) requires diversified funding beyond banks, prompting pursuit of alternative sources for **partial financing of ₹25,000 Cr program**. * **Enterprise Flexibility:** Enterprise segment Capex remains unconstrained due to smaller ticket sizes and agility in deployment, independent of broader mobility funding challenges. --- # 6. Execution & Market Risks ## A. Regional Performance Gaps * **Churn Stabilizing Post-Price Hike:** The negative impact of past pricing actions on subscriber retention has abated across all operators, though return of departed customers remains uncertain. * **Execution Drives Geographic Divergence:** Performance gaps across markets are primarily driven by differences in **5G rollout, coverage expansion, and on-ground execution**, with stronger outcomes in recently invested areas. * **Targeted Remediation Underway:** Management is analyzing market-level data to address underperformance in select regions where **returns on network investments have been subpar**, focusing on distribution and strategic realignment. * **Seasonal & Migration Effects:** Q1 subscriber declines partly reflect **seasonal industry trends** and **migrant labor mobility**, which distort VLR metrics and complicate trend interpretation. ## B. Capex Execution Slippage * **Capex Execution Below Plan:** Despite cumulative spend of **₹12,000 Cr** since the FPO, actual implementation in the current phase has lagged the earlier projected range of ₹5,000–6,000 Cr. * **Funding Delays Pose Risk to 2H Plan:** Bank funding timelines could constrain second-half network capex, though AGR clarity—expected **by March 2026**—is anticipated to alleviate uncertainty. ## C. Migrant Subscriber Impact * **VLR Data Distortions Identified:** Migrant labor movement across regions introduces noise into subscriber reporting, complicating the assessment of true organic demand trends. --- # 7. Guidance & Outlook ## A. Key Figures * **Capex Spend (Quarter):** **₹2,440 Cr** * **Capex Guidance (H1):** **₹5,000–6,000 Cr** (spend front-loaded to September '25) * **3-Year Capex Plan:** **₹50,000–55,000 Cr** (subject to debt financing) ## B. Capex Outlook * **Accelerated Investment Pipeline:** Capex spend surged to ₹2,440 Cr as the company advances its network build-out, with plans to front-load H1 spending by **September '25** despite earlier 5G rollout delays. * **Funding-Linked Execution:** Full execution of the ₹50,000–55,000 Cr three-year capex plan remains contingent on securing **bank debt financing**, underscoring balance sheet sensitivity. * **Low Prior-Year Base:** Current capex represents a sharp increase compared to ~₹5 Cr per quarter in prior year’s Q2–Q3, reflecting the scale-up phase post-merger. ## C. Subscriber Trajectory * **New Leadership, Renewed Focus:** Appointment of Abhijit as CEO marks a pivotal shift, prioritizing **revenue growth**, **subscriber addition**, and **customer experience** amid turnaround efforts. * **Growth Levers Identified:** 5G rollout and recent pricing actions are expected to drive **material performance improvement**, supported by market-specific strategies. * **Forward-Looking Caution:** Management refrained from disclosing 3–5 year revenue targets, citing the **early stage of business evolution** and low base, though internal goals exist.