Airtel and Jio Post AGR Growth in Q1FY26, Vodafone Idea Remains Flat

Bharti Airtel and Reliance Jio saw a 2.6-2.7% rise in adjusted gross revenues (AGR) in Q1FY26, while Vodafone Idea's AGR remained flat. AGR, a metric used to calculate licence fees and spectrum usage charges, increased 16.6% YoY and 1.4% sequentially to ₹71,600 crore. Telecom operators are focusing on premiumising their subscriber base and monetising data consumption to drive revenue growth.

Telecom Services company Vodafone Idea announced its Q1FY26 results, showcasing a notable turnaround in its financial performance. Revenue for the quarter stood at Rs 110.2 billion, marking a 4.9% year-over-year (YoY) growth. EBITDA for the quarter was Rs 46.1 billion, with a cash EBITDA excluding Ind AS 116 impact of Rs 21.8 billion, growing by 3.7% YoY. Capex for the quarter stood at Rs 24.4 billion. As of June 30, 2025, the debt from banks was Rs 19.3 billion, while the cash and bank balance stood at Rs 68.3 billion.

Akshaya Moondra, CEO, Vodafone Idea, commented, "This has been a decisive turnaround quarter. The investments made over the past three quarters to expand our 4G coverage have started yielding results, as reflected in the 90% lower subscriber loss compared to Q2 and Q3 of last financial year, being the lowest subscriber decline since the merger. Our 5G services are now operational in 22 cities across 13 circles, and we are committed to systematically expanding our 5G footprint, in line with growing 5G handset adoption. We are encouraged by the momentum across our core business metrics. Data consumption has hit a record high, driven by the success of our SuperHero and Non-stop SuperHero plans. With a solid foundation in place, we are well-positioned to seize emerging growth opportunities in the industry. We continue to invest in capex and to support our broader capex plans of Rs 500–550 billion, we remain engaged with lenders to secure debt financing."

In comparison, Bharti Airtel and Reliance Jio saw a 2.6-2.7% rise in adjusted gross revenues (AGR) in Q1FY26, while Vodafone Idea's AGR remained flat. AGR, a metric used to calculate licence fees and spectrum usage charges, increased 16.6% YoY and 1.4% sequentially to ₹71,600 crore. Telecom operators are focusing on premiumising their subscriber base and monetising data consumption to drive revenue growth.

The company's 4G population coverage increased to cover ~83% of the population, 4G data capacity increased by ~31%, and 4G speeds increased by ~28% (vs Mar’24). Vodafone Idea continues to invest heavily in network expansion, with a planned capex of Rs 500–550 billion over the next three years.

References:
[1] https://www.icicidirect.com/research/equity/rapid-results/vodafone-idea-ltd