New Delhi: Vodafone Idea reported the lowest subscriber loss at half a million in the June quarter since the merger of Vodafone India and Idea Cellular in 2018, with analysts attributing the decline in customer losses to a bolstered 4G network, rollout of fifth-generation (5G) services in key metros, and pricing interventions.
Analysts, however, added that Vi's capital expenditure (Capex) intensity may slow down from the second half of FY26 in the absence of its much-awaited debt funding and significant statutory dues.
"Vodafone Idea reported a mere 500,000 quarter-on-quarter mobile subscriber loss (albeit a 12.4 million year-on-year decline) to 197.7 million. The subscriber loss... was the lowest since the merger and was a big reduction from the average quarterly loss of 3.7 million subscribers in FY25," Nuvama said in a research note.
The telco's gross subscriber additions stood at 24 million, compared to rival Jio's 36.5 million and Airtel's 30.3 million in the quarter that ended June 30, 2025, but the struggling telco has been grabbing more gross subscriber market share, according to analysts.
"Subscriber losses have moderated and are trending downwards as the company has improved its network coverage and rolled out 5G services. This is definitely an encouraging trend, which can bridge the gap between ARPU and revenue growth, though we would like to see its consistency for the next few quarters," Nuvama stated.
It said the telco's much-delayed fundraise is a key monitorable, and will be crucial to support capex along with upcoming adjusted gross revenue (AGR) and spectrum obligations. "While parameters such as pace of subscriber loss and ARPU also need to improve, balance sheet repair has become highly crucial for VIL's survival," as per the brokerage.
Vi's average revenue per user (ARPU) grew by 0.6% quarter-on-quarter on the back of one additional day in the June quarter. "Post-paid subscribers have been growing steadily for VIL, up 10.1% year-on-year (+1 million), which is also helping in growing organic ARPU. VIL's 5G subscriber additions benefitted from its introductory offer of ₹299 (vs. Jio's at ₹349 and Bharti's at ₹398) for 28 days," ICICI Securities said.
Vi executives, during the most recent post-earnings analyst call, indicated a strong traction in 5G uptake on its network in the 22 cities it has launched.
'Mobile Broadband'
"VIL started an aggressive rollout - it had strong MBB (mobile broadband) deployment with 4G/5G-site net add of 22,000 BTS in Q1FY26, which has helped in increasing data capacity by 36% and population coverage from 77% to 84.1%. Data subscribers rose 0.7 million to 135 million, while 4G subs rose 1 million to 127.4 million," said ICICI.
Citi Research said Vi's unique tower base over the last three quarters has risen by ~13,000 to 197,000, and estimated that Indus Towers holds a two-thirds share of this footprint.
Analysts, however, added that Vi's capital expenditure (Capex) intensity may slow down from the second half of FY26 in the absence of its much-awaited debt funding and significant statutory dues.
"Vodafone Idea reported a mere 500,000 quarter-on-quarter mobile subscriber loss (albeit a 12.4 million year-on-year decline) to 197.7 million. The subscriber loss... was the lowest since the merger and was a big reduction from the average quarterly loss of 3.7 million subscribers in FY25," Nuvama said in a research note.
The telco's gross subscriber additions stood at 24 million, compared to rival Jio's 36.5 million and Airtel's 30.3 million in the quarter that ended June 30, 2025, but the struggling telco has been grabbing more gross subscriber market share, according to analysts.
"Subscriber losses have moderated and are trending downwards as the company has improved its network coverage and rolled out 5G services. This is definitely an encouraging trend, which can bridge the gap between ARPU and revenue growth, though we would like to see its consistency for the next few quarters," Nuvama stated.
It said the telco's much-delayed fundraise is a key monitorable, and will be crucial to support capex along with upcoming adjusted gross revenue (AGR) and spectrum obligations. "While parameters such as pace of subscriber loss and ARPU also need to improve, balance sheet repair has become highly crucial for VIL's survival," as per the brokerage.
Vi's average revenue per user (ARPU) grew by 0.6% quarter-on-quarter on the back of one additional day in the June quarter. "Post-paid subscribers have been growing steadily for VIL, up 10.1% year-on-year (+1 million), which is also helping in growing organic ARPU. VIL's 5G subscriber additions benefitted from its introductory offer of ₹299 (vs. Jio's at ₹349 and Bharti's at ₹398) for 28 days," ICICI Securities said.
Vi executives, during the most recent post-earnings analyst call, indicated a strong traction in 5G uptake on its network in the 22 cities it has launched.
'Mobile Broadband'
"VIL started an aggressive rollout - it had strong MBB (mobile broadband) deployment with 4G/5G-site net add of 22,000 BTS in Q1FY26, which has helped in increasing data capacity by 36% and population coverage from 77% to 84.1%. Data subscribers rose 0.7 million to 135 million, while 4G subs rose 1 million to 127.4 million," said ICICI.
Citi Research said Vi's unique tower base over the last three quarters has risen by ~13,000 to 197,000, and estimated that Indus Towers holds a two-thirds share of this footprint.
