Vodafone Idea Q1 FY27 Results Analysis: EBITDA Margin Expands 130 bps, Subscriber Base Turns Positive

Vodafone Idea Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 11,689.00 Cr (+6.00% YoY) and PAT growth of +43.20% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 6% YoY, EBITDA margin expanded 130 bps to 43.1%, and subscriber base turned positive for first time since merger. However, normalized PAT loss of Rs.5,365 Cr and negative net worth of Rs.38,327 Cr highlight structural challenges. Credit rating upgrades and warrant issuance improve financial flexibility.

Key Investment Insights

Key Positives

• Revenue grew 6.0% YoY to Rs.11,689 Cr, fastest pace in several quarters.
• EBITDA grew 9.2% YoY to Rs.5,034 Cr, highest quarterly figure in series.
• EBITDA margin expanded 130 bps YoY to 43.1%.
• ARPU rose 10.2% YoY to Rs.195, record high.
• Subscriber base added net 0.3 mn, first positive quarter since merger.
• Finance costs declined 13.1% YoY to Rs.5,120 Cr, lowest in series.
• Credit rating upgraded to Crisil A–/Stable and ICRA A–/Stable.

Risk Factors

• Negative net worth of Rs.38,327 Cr and total government dues of Rs.1,56,058 Cr remain structural overhang.
• Normalized PAT loss of Rs.5,365 Cr, though improved, still deep loss.
• Capex of Rs.1,930 Cr annualized below Rs.45,000 Cr 3-year plan run-rate.
• Roaming & Access Charges rose 19.7% YoY, pressuring costs.
• Subscriber base still down 2.3% YoY despite QoQ improvement.