New Delhi, May 17 -- Telecom operator Vodafone Idea showed early signs of operational improvement in the March quarter, as its subscriber base stabilised and average revenue per user (Arpu) rose.

Analysts, however, said the company's long-term recovery still hinges on securing larger funding to manage spectrum liabilities and improve services.

On Saturday, the company's board approved a Rs.4,730 crore fund infusion from promoter Aditya Birla Group entity Suryaja Investments Pte Ltd, through issuance of 4.3 billion equity-convertible warrants at Rs.11 per share.

The funding is largely seen as a signal to lenders that promoters are backing the company at a time when Vodafone Idea has been struggling to secure much-awaited bank financing,...