Vodafone Idea shares: What’s behind Rs 51,986 cr profit in Q4; target prices

Shares of Vodafone Idea Ltd (VIL) are in focus on Monday morning after the telecom operator declared a profit of Rs 51,986 crore for the March quarter compared with a loss of Rs 5,284 crore in the December quarter and Rs 7,167 crore in the same quarter last year. The profit boost was largely driven by Rs 57,491 crore exception items, as the company took one-time accounting gain from an Adjusted Gross Revenue (AGR) reassessment as an exceptional items in its fourth quarter results. 

Vodafone Idea: What’s behind Q4 profit surge? 

In the fourth quarter, VIL explained, the financial liability of Rs 80,502 crore as at December 31, 2025, was derecognised and revised financial liability of Rs 24,880 crore was recognized, which is the present value of future payments. 

“The resulting difference of Rs. 55,622 crore (including impact of reassessed amount) along with net impact of other related provisions has been credited to statement of Profit & Loss and disclosed under Exceptional items in the financial results for the quarter and year ended March 31, 2026,” it said.

To recall, the Department of Telecommunications (DoT) had on January 27 confirmed that the AGR dues frozen as on December 31, 2025, amount to Rs 87,695 crore and were subject to further reassessment. Vodafone Idea later received a communication from the DoT on April 30, stating that the committee formed for the purpose of reassessment finalized the AGR dues at Rs 64,046 crore for the FY2006-07 to FY2018-19 as on December 31, 2025.

Vodafone Idea: AGR dues payments

The revised dues are to be addressed by paying a minimum Rs 100 crore annually over 4 years i.e. March 2032 to March 2035; and later Rs 10,608 crore annually over six years i.e. March 2036 to March 2041. 

“In addition, the company has to pay Spectrum Usage Charges (“SUC”) amounting to Rs 609 crore with interest in respect of FY 2017-18 and FY 2018-19 in six annual instalments of Rs 124 crore between i.e. March 2026 and March 2031. Accordingly, the Company paid Rs 124 crore in March 2026,” Vodafone Idea said.

For the quarter, Vodafone Idea said its revenue grew 2.0 per cen tto Rs 11,332 crore. Sales were up 2.3 per cent sequentially on an equal day basis. Ebitda for the quarter came in at Rs 4,889 crore, a YoY growth of 4.9 per cent. 

Vodafone Idea said its customer average revenue per user (ARPU) increased to Rs 190 in Q4FY26 compared to Rs 175 in Q4FY25, a YoY increase of 8.3 per cent, the highest in the industry, thanks to customer upgrades. 

“We brought 48.2 million incremental population under the fold of our 4G coverage. 4G data capacity increased by over 12 per cent compared to FY25, VIL said adding that “With our planned investments, the 4G population coverage in the 17 circles is expected to increase to over 95 per cent.”

Vodafone Idea target prices
UBS has reportedly suggested a ‘Neutral’ on Vodafone Idea with a target price of Rs 12.40. Citi has suggested a target of Rs 14 on the stock. Macquarie has reportedly suggested a target of Rs 9 on the stock.