# 1. Financial Performance ## A. Key Figures * Revenue: ₹11,190 Cr (Q2 FY'; +2.4% YoY, +1.6% QoQ) · ₹11,020 Cr (Q1 FY') * EBITDA: ₹46.9 Cr (+3% YoY, +1.6% QoQ) · Margin: 41.9% (+20 bps YoY) * Cash EBITDA: ₹2,250 Cr (-3.4% YoY, +3% QoQ) · Margin: 21.1% (+30 bps QoQ) * Depreciation & Amortization: ₹55.7 billion · Net Finance Costs: ₹46.8 billion * **Debt:** **₹1,530 Cr** (Sep 2025) · **Cash Balance:** **₹1,380 Cr** ## B. Revenue Growth * **Sustained Non-Wireless Momentum:** Enterprise and messaging revenues posted **6–7% YoY and QoQ growth**, driven by core demand with no one-time items, signaling durable diversification. ## C. EBITDA & Margins * **Stable Margin Trajectory:** Reported EBITDA margin improved despite **elevated network operating costs** from 4G/5G rollout, supported by cost optimization. * **Finance Cost Clarity:** Sharp drop in net finance costs due to **vendor settlement reversals** and **FX gains**, not moratorium expiry; underlying costs expected to align with prior two-quarter average. * **Network Cost Discipline:** Post-rollout network costs remain **below pre-investment levels** (Dec 2023), aided by efficiency gains and potential **IndAS 116 impact**. ## D. Balance Sheet & Cash Flow * **Strong Deleveraging:** Debt reduced by **₹1,720 Cr over 12 months**, reflecting proactive balance sheet management amid high capex cycle. * **Cash Flow Profile:** High depreciation and finance costs reflect asset base and financing structure; **core cash outflows moderated** when adjusting for IndAS 116. --- # 2. Subscribers & ARPU ## A. Key Figures * 4G/5G Subscribers: 127.8 Mn base (+0.4 Mn YoY) * **Quarterly Additions:** **4 Lakh** net additions * **Consumer ARPU:** **₹180** (+7% YoY) * **Average Data Usage:** **18.5 GB/day** per user ## B. 4G/5G Additions * **Resilient Growth Trajectory:** Subscriber base expanded by 4 crore over the past year despite marginal quarterly loss, reflecting strong underlying demand and network-driven adoption. * **Engagement-Driven Additions:** Recent quarterly growth fueled by **'SuperHero'** and **'Non-Stop Hero'** programs, which are enhancing customer stickiness and data consumption. * **Network-Led Momentum:** Early investment circles show **superior traction, lower churn, and higher urban uptake**, validating capital allocation strategy. ## C. ARPU Trends * **ARPU Expansion Supported by Usage:** 7% YoY ARPU growth underpinned by **5 GB/day average data consumption**, up sharply from prior periods due to network reinvestment. * **Pricing Power Emerging:** Tariff increased to **₹349** in early 5G markets, achieving parity with peers priced between **₹349–₹379**, signaling improved monetization potential. * **Introductory Pricing Trade-off:** Initial 5G plan at **₹299 for 5 GB/day**—more generous than peers’ 2 GB/day—may have delayed premiumization but boosted adoption. ## D. Churn & Retention * **Churn Volatility Amid Structural Improvement:** Recent uptick to **1 Cr** quarterly churn attributed to seasonality; long-term trend shows marked improvement from prior highs. * **Loyalty Programs Driving Retention:** **'Vi Guarantee'** (24 days extra validity annually) and engagement plans are key levers reducing churn and reinforcing customer loyalty. * **Seasonal Headwinds Transient:** Management expresses confidence in reversing recent subscriber loss trends, citing proven retention mechanics and network quality gains. --- # 3. Network & Coverage ## A. Key Figures * **4G Population Coverage:** **84%** (Sep’25) (+7 pp from Mar’24) · **Target: 90%** in coming quarters * **4G Data Capacity:** **+38%** (since Mar’24) * **4G Speeds:** **+17%** improvement (since Mar’24) * **Broadband Sites:** **~527,000** total (as of Sep’25) (+90,000 BTS added last 12 months) * **Massive MIMO & Small Cells:** **13,000+** Massive MIMO · **12,400+** small cells deployed * **5G Rollout:** Launched in **17 circles** (nearly 99% of revenue base) · **29 cities** covered * **Data Usage per Customer:** **18 GB/month** vs. peer average of **28 GB/month** ## B. 4G Expansion * **Accelerated Coverage Gains:** 4G population coverage expanded rapidly to 84%, with a clear path toward 90%, driven by targeted capex and network densification. * **Strategic Enterprise Focus:** Dedicated Enterprise Corridor in five major metros adds **over 2 Tbps capacity**, enhancing support for mission-critical applications. * **Subscriber Recovery Signal:** Improving 4G coverage is correlating with a declining trend in subscriber losses, with net additions expected as coverage nears 90%. ## C. 5G Rollout * **Nationwide 5G Launch Achieved:** Services now live across all 17 priority circles (covering nearly 99% of revenue), with expansion guided by demand and **5G handset penetration**. * **Early 5G Performance Positive:** Initial deployments show **significantly better traffic offload** on 5G versus legacy networks, validating network efficiency gains. * **Scalable Architecture in Place:** Current 5G non-standalone (NSA) deployment is future-ready for transition to standalone (SA) as business needs evolve. ## D. Capacity Growth * **Robust Infrastructure Buildout:** Significant capacity expansion over past year, including **~19,000 broadband locations** and dense urban layering via small cells. * **Usage Gap Highlights Opportunity:** Despite strong capacity growth, average data usage lags peers by **10 GB/month**, signaling untapped demand and room for ARPU improvement. * **Traffic Growth Modest:** Overall data traffic up only **4% YoY**, reflecting subdued customer engagement despite network improvements. --- # 4. Product & Digital Services ## A. Key Figures * **UPI Transaction Volume:** **1,960 Cr** transactions (₹25 Lakh Cr value) (+31% YoY) * **International Roaming Coverage:** **151 countries** with truly unlimited data/calls in **40+ countries** * IoT & Smart Metering Target: 12 million smart meter deployments planned over next 3 years ## B. Plan Innovation * **Prepaid Growth Engine:** Non-Stop Hero Plan drives strong 4G/5G subscriber uptake, boosting acquisition and renewal rates in prepaid segment. * **Differentiated Postpaid Offering:** REDX Family Plan launches as India’s only family postpaid plan with full parity benefits, including unlimited 5G, international roaming, and premium lifestyle perks. ## C. Vi App Ecosystem * **Digital Platform Expansion:** Vi App evolves into a daily digital companion, integrating Vi Finance, Vi Shop, Vi Games, bill payments, and OTT access via Vi Movies & TV. * **Financial Services Launch:** Vi Finance rolls out with instant personal loans (via Aditya Birla Capital and InstaMoney), fixed deposits, and credit cards, enabling new monetization streams. * **Robust App Adoption:** Multi-service integration drives strong user engagement and improved app ratings over time. * **Strategic Digital Vision:** Company aims to become a fully integrated digital services provider, leveraging partnerships and targeted offerings to deepen consumer engagement. ## D. Enterprise Solutions * **AI & Security Leadership:** Launched AI-powered spam detection and upgraded Cyber Defense System under Vi Protect; introduced Autonomous SOC and AI-driven CCaaS with Genesys. * **IoT Innovation Hub:** Unveiled India’s first telco-backed IoT Lab with AWS and C-DOT, enabling co-creation across automotive, manufacturing, and smart infrastructure. * **Enterprise Digital Transformation:** Showcased AI-powered Managed Wi-Fi, SD-WAN in Robotics, multi-cloud services, and VR-enabled IoT Lab experiences at IMC 2025. * **MSME Digital Enablement:** ReadyForNext program recognized as India’s largest MSME digital advisory service, now offering Google Workspace deals via Google partnership. * **Smart Energy Play:** Smart Metering business scales with **2 Cr** deployment target, positioning Vi as a key enabler of national smart grid transition. --- # 5. Capex & Funding ## A. Key Figures * **Capex:** **₹1,750 Cr** Q2FY26 · **₹4,200 Cr** H1FY26 * **Full-Year Capex Guidance:** **₹7,500–8,000 Cr** FY26 * **Long-Term Capex Plan:** **₹50,000–55,000 Cr** (funding discussions ongoing) * **4G Coverage Expansion Cost (84% → 90%):** **₹4,000 Cr** ## B. Capex Allocation * **Strategic Network Buildout:** Capex focused on **expanding 4G and 5G coverage**, with balanced investment in capacity, core, and transmission infrastructure. * **Coverage-Centric Strategy:** Management prioritizes **coverage over capacity**, especially to achieve 90% 4G footprint, with 5G deployment progressing in parallel. * **Robust Site Expansion:** Significant network densification in Q2, including **over 1,500 new 4G towers** and **~6,800 total new sites across key spectrum bands**. ## C. Debt & Liquidity * **Active Fundraising Mode:** Engaged with banks and NBFCs for long-term debt, supported by improved policy clarity and government stake. * **Funding Path Divergence:** Near-term capex fully funded via **internal accruals**, while **large-scale future plans hinge on external financing**. --- # 6. Risks & Regulatory ## A. Key Figures * **Outstanding AGR Debt:** **₹78,500–79,000 Cr** (as of Sep-25, principal + interest, FY 2016–17 and prior) ## B. AGR Uncertainty * **Regulatory Reassessment Underway:** Supreme Court has enabled government to comprehensively reassess AGR dues, including interest and penalties, with Vodafone Idea actively engaged in discussions with DoT. * **Strategic Engagement, No ICR Talks:** VIL is not currently in business-as-usual discussions with ICR; all updates on AGR remain contingent on DoT engagement, with no resolution timeline provided. * **Stable Subscriber Base:** No meaningful churn to BSNL observed; recent shifts are seasonal and marginal, preserving core customer stability amid regulatory uncertainty. ## C. Tariff Pressure * **Tariff Hikes Likely but Not Imminent:** Management indicates price increases may be necessary to support sustainability, though timing hinges on industry dynamics and leadership alignment, not direct AGR developments. --- # 7. Guidance & Outlook ## A. Monetization Plans * **Long-Term Growth Drivers:** Rising smartphone adoption, affordable data, low rural penetration, population growth, and the **Digital India initiative** underpin sustained wireless sector expansion. * **Data Traffic Leadership:** India on track to become **one of the highest mobile data traffic-generating nations per active smartphone by 2030**, demanding continuous innovation and agility from operators. * **5G Monetization Focus:** Management actively evaluating strategies to upgrade 5G users and enhance revenue capture as network coverage expands.