Vodafone Idea's shares climb over 6% as Q2 net loss narrows

New Delhi: Shares of Vodafone Idea climbed more than 6 per cent on Tuesday after the debt-ridden telecom operator said its consolidated net loss narrowed to Rs 5,524 crore in the second quarter ended September compared to the year-ago period.

The company's shares appreciated by 6.4 per cent to hit a high of Rs 10.11 apiece on the NSE.

On the BSE, the stock of Gandhinagar-based Vodafone Idea advanced 6.31 per cent to Rs 10.11 per piece.

The markets are trading in the negative territory. The 30-share BSE Sensex dropped 309.14 points, or 0.37 per cent, to 83,226.21. The NSE Nifty fell 96.35 points, or 0.38 per cent to 25,478 in the morning trade.

On Monday, Vodafone Idea said its consolidated net loss narrowed to Rs 5,524 crore in the second quarter ended September compared to the year-ago period, mainly on account of savings in finance cost on debt from banks and an increase in average revenue per user supported by a tariff hike.

Vodafone Idea Ltd (VIL), in its financial performance note, mentioned that its ability to settle debt liability is dependent on government support, fundraise and cash flow generation from operations.

VIL had posted a net loss of Rs 7,176 crore in the year-ago period, according to the company’s regulatory filing.

The government holds a 49 per cent stake in VIL.

While an increase in average revenue per user (ARPU) due to a tariff hike helped VIL improve its financial performance, the company continues to record a dip in its subscriber base, both on a quarterly and year-over-year (YoY) basis.

A 27 per cent decline in finance cost helped VIL narrow its loss. Its finance cost stood at Rs 4,784.4 crore in the September 2025 quarter against Rs 6,613.6 crore a year ago, mainly on account of a reduction in debt from banks.

The company's debt from banks reduced to Rs 1,542 crore in the September quarter from Rs 3,250 crore.

VIL incurred a loss of Rs 12,132 crore in the first half of the current fiscal and its net worth stands at negative Rs 82,460 crore as on September 30. The total debt of the company stood at Rs 2.02 lakh crore at the end of the second quarter of FY26.

VIL consolidated revenue from operations increased 2.4 per cent to Rs 11,195 crore during the reported quarter from Rs 10,932 crore a year ago.

The customer ARPU (average revenue per user) rose 8.7 per cent year-on-year to Rs 180 in the reported quarter from Rs 166 in the September 2024 quarter, mainly due to customer upgrades and tariff increases, the company said.