Vodafone Idea, India’s third-largest telecom operator, posted a ₹51,970 crore net profit in the March quarter owing to one-time accounting gain from the government's adjusted gross revenue (AGR) relief.This is the first time in recent years that the company has shown a significantly high net profit. To be sure, the telecom operator booked a ₹58,116 crore exceptional gain during the quarter on the reduction of deferred AGR dues payment obligations.The loss, before accounting for the exceptional gain, was at ₹5,515 crore, narrowing from ₹5,286 crore in the preceding quarter and ₹7,167 crore in the year-ago period.Promoter infusionSeparately, on Saturday, the telecom operator said the promoter, the Aditya Birla Group, has committed to a capital infusion of ₹4,730 crore. The board has approved the issuance of warrants to the promoter entity, which can be converted into equity shares, the company said.The promoter infusion is significant as the company has been struggling for months to secure bank funding, with lenders remaining wary of extending fresh debt to the cash-strapped telecom services provider.A reduction in finance cost also helped the company's bottom line.On 31 December, the Centre froze its AGR dues at ₹87,695. Later in April, the government slashed the cash-strapped telecom firm’s AGR dues by ₹23,600 crore to ₹64,046 crore after recalculation, deferring the bulk of its payments by 10 years, to be paid from FY36 to FY41.Its revenue from operations increased 2.9% on-year and 2.3% on-quarter to ₹11,332 crore, surpassing the average estimate of four brokerage firms of ₹11,287 crore. The improvement in revenue can be attributed to its network expansion and improvements, 2G-to-4G/5G migration, and increased data consumption on the network.“The gains from the capex investments and network rollout are now clearly visible. Q4FY26 marks a decisive step forward across all seven key parameters we benchmark our performance against, demonstrating sequential improvement. Most significantly, our subscriber addition turned net positive since February 2026, a meaningful milestone that reflects the impact of our sustained network investment,” said Abhijit Kishore, chief executive of Vodafone Idea.In 2025-26, the company witnessed a 3% increase in revenue from operations to ₹43,571 crore. The company posted a net profit of ₹34,552 crore, up from ₹20,217 crore in the previous year.