Vodafone Idea narrows loss as operating margin rises YoY
Revenue growth outpaced costs YoY and lower interest expense helped, but the quarter still ended in a Rs 3,754 cr consolidated loss.
Filed 10 Aug 2026, 19:54 IST · after market close · Vodafone Idea Ltd (IDEA)
Key takeaways
- Consolidated operating margin improved 1.23 percentage points YoY as revenue grew +6.05% while expenses rose +3.82%.
- The consolidated net loss narrowed by 43.19% YoY, helped by a 13.11% fall in interest costs, but Rs 1,806 cr of other income could not offset Rs 5,120 cr of interest and Rs 5,467 cr of depreciation.
- QoQ revenue rose +3.15% but costs grew +3.29%, trimming operating margin by 0.07 percentage points to 43.07%.
Price around the results
Operating improvement did not reach net profit
Revenue grew +6.05% YoY, ahead of expense growth of +3.82%, lifting operating profit by +9.15%. The loss before tax narrowed as interest expense fell 13.11% YoY, while depreciation was broadly unchanged. Net profit remained negative at Rs 3,754 cr despite Rs 1,806 cr of other income.
Margin holds near the recent high
The QoQ margin decline of 0.07 percentage points reflects costs growing slightly faster than revenue. Even so, operating margin has improved from 41.84% in Q1FY26 to 43.07% now, after rising through Q2FY26, Q3FY26 and Q4FY26. Among 10 telecom peers that have reported, Vodafone Idea's margin was 23.65 percentage points above the sector median.
Other income makes the QoQ comparison noisy
Other income fell 96.86% QoQ from Rs 57,595 cr in Q4FY26 to Rs 1,806 cr in the current quarter, making the prior quarter's profit unsuitable as an operating benchmark. Other income was equivalent to -48.2% of current-quarter PBT, which remained negative, so the loss reduction was driven more by operating profit and lower interest than by a recurring non-operating contribution.
No market reaction has been recorded yet
The consolidated results were filed after market close, so there is no post-result stock move to assess. Across the last eight results, the stock rose four times and fell four times, with a median absolute move of 3.37%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹11,689 cr | ₹11,332 cr | +3.15% | +6.05% |
| Other income | ₹1,806 cr | ₹57,595 cr | -96.86% | +1174.52% |
| Expenses | ₹6,655 cr | ₹6,443 cr | +3.29% | +3.82% |
| Operating profit | ₹5,034 cr | ₹4,889 cr | +2.97% | +9.15% |
| Operating margin (%) | 43.07% | 43.14% | — | — |
| Interest | ₹5,120 cr | ₹4,990 cr | +2.61% | -13.11% |
| Depreciation | ₹5,467 cr | ₹5,518 cr | -0.92% | -0.09% |
| Profit before tax | ₹-3,747 cr | ₹51,976 cr | — | +43.32% |
| Tax | ₹7 cr | ₹6 cr | +16.67% | — |
| Net profit | ₹-3,754 cr | ₹51,970 cr | — | +43.19% |
| EPS (₹) | ₹-0.35 | ₹4.80 | — | +44.44% |
Operating margin of 43.07% compares with a Telecommunication sector median of 19.42% across 10 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 43.07% after the 0.07 percentage-point QoQ decline.
- Whether interest expense remains below Rs 5,120 cr after its 13.11% YoY reduction.
- Whether other income stays near Rs 1,806 cr rather than repeating the Rs 57,595 cr recorded in Q4FY26.