Vodafone Idea profit rests on Rs 57,595 cr of other income
Operating margin rose for a third straight quarter, but the tax rate of 0.01% and other income drove the reported profit.
Filed 16 May 2026, 18:58 IST · after market close · Vodafone Idea Ltd (IDEA)
Key takeaways
- Consolidated net profit of Rs 51,970 cr was driven by other income of Rs 57,595 cr, which represented 110.81% of pre-tax profit.
- Operating margin improved 0.83 percentage points year on year to 43.14% as revenue grew +2.89% while expenses rose +1.40%.
- The stock fell -0.69% initially, a smaller move than its 3.37% median absolute reaction after the past eight results.
Price around the results
Reported profit was not operating earnings
Vodafone Idea reported consolidated net profit of Rs 51,970 cr in Q4FY26, reversing the Rs 7,166.1 cr loss a year earlier. The quality of that profit is weak: other income of Rs 57,595 cr exceeded pre-tax profit and operating profit of Rs 4,889 cr was more than offset by interest of Rs 4,990 cr and depreciation of Rs 5,518 cr. Tax was only Rs 6 cr, leaving the tax rate at 0.01% and further lifting net profit.
Costs supported a modest operating-margin gain
Sequential revenue was almost flat at +0.08%, while expenses fell -0.97%, allowing operating profit to rise +1.49% and operating margin to expand 0.60 percentage points. Year on year, revenue grew +2.89% against expense growth of +1.40%, widening margin by 0.83 percentage points. Interest also fell -22.89% year on year and -14.38% sequentially, although operating profit remained below the combined interest and depreciation charge.
Margin has improved for three straight quarters
Operating margin rose from 41.85% in Q2FY26 to 42.54% in Q3FY26 and 43.14% in Q4FY26, marking a third consecutive quarterly improvement. Among seven telecom peers that had reported the same quarter, Vodafone Idea's margin was 23.55 percentage points above the 19.59% median.
Initial market reaction was within its usual range
The stock declined -0.69% on the first session after the results, with an opening gap of -1.62%. That was milder than the stock's 3.37% median absolute move across its past eight result reactions, when it rose after five results and fell after three. The shares were up +8.42% five sessions after the filing and +13.05% after 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹11,332 cr | ₹11,323 cr | +0.08% | +2.89% |
| Other income | ₹57,595 cr | ₹1,271 cr | +4431.47% | +26465.96% |
| Expenses | ₹6,443 cr | ₹6,506 cr | -0.97% | +1.40% |
| Operating profit | ₹4,889 cr | ₹4,817 cr | +1.49% | +4.92% |
| Operating margin (%) | 43.14% | 42.54% | — | — |
| Interest | ₹4,990 cr | ₹5,828 cr | -14.38% | -22.89% |
| Depreciation | ₹5,518 cr | ₹5,550 cr | -0.58% | -0.96% |
| Profit before tax | ₹51,976 cr | ₹-5,290 cr | — | — |
| Tax | ₹6 cr | ₹-4 cr | — | — |
| Net profit | ₹51,970 cr | ₹-5,286 cr | — | — |
| EPS (₹) | ₹4.80 | ₹-0.49 | — | — |
Operating margin of 43.14% compares with a Telecommunication sector median of 19.59% across 7 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.69% | -0.72% |
| Next session | +4.40% | — |
| 5 sessions | +8.42% | +6.78% |
| 15 sessions | +9.19% | — |
| 30 sessions | +13.05% | — |
Volume on the results session was 1.81× its 20-day average.
What to watch
- Whether operating margin holds above 43.14% after its third straight quarterly improvement.
- Whether revenue growth moves beyond the +0.08% sequential pace.
- Whether other income falls from Rs 57,595 cr and profit again depends on non-operating income.