India’s Vodafone Idea posted a smaller-than-expected second-quarter loss yesterday, aided by more users upgrading to its higher-margin 4G and 5G plans. The debt-saddled telecom operator has been investing in its 4G and 5G infrastructure over the past few years to improve service quality in a bid to arrest declining subscribers.

Vodafone Idea’s average revenue per user (ARPU) — a key telecom metric — rose about 9 percent year-on-year to 180 rupees, helped by a modest 1.5 percent increase in 4G and 5G users, and steady data usage, a Reuters report stated yesterday.

However, the figure still trails larger rivals Reliance Jio‘s 211.4 rupees and Bharti Airtel’s 256 rupees.

Vodafone Idea, now 49 percent owned by the Indian government, was formed in 2018 by a merger between the Indian arm of the UK’s Vodafone Group and Aditya Birla Group’s Idea Cellular.

It has reported losses every quarter since, ceding market share to Airtel and Jio, weighed by over $22 billion in debt and struggling to expand its networks as rapidly as its competitors. With a payment deadline for billions in statutory dues looming in 2026, analysts warn its survival hinges on fresh funding and urgent government relief.

Last week, India’s Supreme Court said the government could reassess the quantum of the firm’s telecom dues. The telecom operator’s consolidated loss after tax narrowed to 55.24 billion rupees ($628.5 million) in the quarter ended September 30, from a loss of 71.76 billion rupees last year.