Vodafone Idea loss widens 59.16% QoQ as interest rises
Revenue grew 1.67% sequentially, but faster cost growth cut operating margin by 1.16 percentage points and lower other income removed a profit cushion.
Filed 12 Nov 2026, 19:34 IST · after market close · Vodafone Idea Ltd (IDEA)
Key takeaways
- Vodafone Idea’s consolidated net loss widened 59.16% QoQ to Rs 5,975 cr as interest expense rose 4.51% and other income turned negative at Rs -86 cr.
- Operating margin fell 1.16 percentage points QoQ to 41.91% because expenses grew 3.73% against revenue growth of 1.67%.
- Year-on-year revenue growth of 6.16% broadly matched expense growth of 6.04%, but interest expense rose 11.84%, worsening the pre-tax loss by 7.85%.
Price around the results
Interest and other income drove the sharper loss
The consolidated net loss widened 59.16% QoQ even as revenue increased 1.67%, because interest expense rose 4.51% and depreciation increased 0.70%. Other income fell from Rs 1,806 cr in Q1FY27 to Rs -86 cr, while the tax-rate change was only 0.04 percentage points and did not materially offset the loss.
Costs outpaced revenue after a margin peak
Expenses grew 3.73% QoQ against revenue growth of 1.67%, narrowing operating margin by 1.16 percentage points to 41.91%. The margin is below 43.14% in Q4FY26 and 43.07% in Q1FY27, but remains 0.06 percentage points above Q2FY26; this is a recent pullback rather than a third straight quarterly decline. Vodafone Idea’s margin was 14.55 percentage points above the 27.36% median for the 12 telecom peers that had reported the quarter.
Year-on-year operating stability did not prevent higher losses
Year-on-year revenue rose 6.16% while expenses grew 6.04%, lifting operating margin by 0.06 percentage points. However, interest expense increased 11.84%, and the pre-tax loss widened 7.85%, showing that operating performance did not translate into better reported profit.
Management links the next phase to coverage and monetisation
Management said it targets double-digit revenue growth and cash EBITDA in three years. It also said it aims to deliver a seamless 5G experience across urban markets and regain coverage parity in 17 key circles. The company identified ARPU as among the lowest globally and said it is rolling out a refreshed brand identity with a new logo.
No immediate market reaction was available
The consolidated results were filed after market close, so no market reaction is covered here. In the previous eight result reactions, the stock rose four times and fell four times, with a median absolute move of 1.59%, indicating a mixed response history.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹11,884 cr | ₹11,689 cr | +1.67% | +6.16% |
| Other income | ₹-86 cr | ₹1,806 cr | — | — |
| Expenses | ₹6,903 cr | ₹6,655 cr | +3.73% | +6.04% |
| Operating profit | ₹4,981 cr | ₹5,034 cr | -1.05% | +6.32% |
| Operating margin (%) | 41.91% | 43.07% | — | — |
| Interest | ₹5,351 cr | ₹5,120 cr | +4.51% | +11.84% |
| Depreciation | ₹5,505 cr | ₹5,467 cr | +0.70% | -1.12% |
| Profit before tax | ₹-5,961 cr | ₹-3,747 cr | -59.09% | -7.85% |
| Tax | ₹14 cr | ₹7 cr | +100.00% | — |
| Net profit | ₹-5,975 cr | ₹-3,754 cr | -59.16% | -8.16% |
| EPS (₹) | ₹-0.55 | ₹-0.35 | -57.14% | -7.84% |
Operating margin of 41.91% compares with a Telecommunication sector median of 27.36% across 12 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company targets double-digit revenue growth.
- The company targets cash EBITDA in three years.
- The company aims for a seamless 5G experience across urban markets.
Expansion
- The company plans to regain coverage parity in 17 key circles.
New initiatives
- The company is rolling out a refreshed brand identity with a new logo.
Competition
- India's wireless market has three private players and one government player.
Problems & risks
- The company identifies ARPU as being among the lowest globally.
What to watch
- Whether revenue growth exceeds 6.16% year-on-year.
- Whether operating margin recovers from 41.91%.
- Whether interest-expense growth moderates from 11.84% year-on-year.