Vodafone Idea Reports Narrowing Losses and Increased Revenue
Vodafone Idea, one of India’s leading telecommunications companies, has reported a net loss of Rs 7,166 crore for the fourth quarter of the financial year 2025, a decrease of 6.62 per cent from Rs 7,674 crore in the same quarter of the previous financial year. This reduction in losses is attributed to lower expenses, according to the company’s report.
The company’s finance cost rose to Rs 6,471 crore, up 3 per cent from Rs 6,280 crore in the same quarter last year. On a sequential basis, however, the net loss widened by 8.42 per cent from Rs 6,609 crore in the preceding quarter.
According to Communications Today, Akshaya Moondra, CEO of Vodafone Idea Limited, stated, "This has been a turnaround quarter for us, marked by the highest average daily revenue in the past 5 years and a significant reduction in subscriber loss. Early indicators show improvement across key business metrics and with our ongoing investments, we are well placed to participate in the growth opportunity offered by the Industry effectively."
The company’s board approved the raising of Rs 20,000 crore through a follow-on public offer (FPO), private placement, including qualified institutional placement (QIP), or any other permissible mode, at its May 30 meeting.
Key Highlights for the Quarter
- Revenue for the quarter stood at Rs. 110.1 billion, the highest average daily revenue in the last 5 years.
- Cash EBITDA for the quarter (pre-Ind AS 116) of Rs. 23.2 billion, grew by 6.5% on a YoY basis.
- Customer ARPU (ex M2M) for the quarter stood at Rs. 175 vs Rs. 153 in Q4FY25, a YoY growth of 14.2%.
- Total subscriber base stood at 198.2 million, with a net loss of 1.6 million vs 5.2 million in Q3FY25.
Key Highlights for the Year
- Annual revenue of Rs. 435.7 billion, an annual growth of 2.2%.
- Annual Cash EBITDA (pre-IndAS116) of Rs. 92 billion, an annual growth of 9.5%.
- CapEx spend of Rs. 95.7 billion in FY25.
- 4G population coverage increased to cover ~83% of the population, 4G data capacity increased by ~31%, and 4G speeds increased by ~28% (vs Mar’24).
As reported by Communications Today, the company’s equity raise of ~Rs. 388 billion, including ~Rs. 19 billion preferential issue to the promoter, Vodafone Group, and conversion of ~Rs. 369 billion spectrum dues to equity to the Government of India.
Operational Highlights
The company significantly accelerated the expansion of its 4G coverage and capacity this year. It increased its 4G population coverage by ~6% to ~83% as of Mar’25 compared to ~77% in Mar’24. During the same period, its 4G data capacity expanded by ~31%, driving ~28% improvement in 4G speeds.
Financial Highlights
The company’s revenue for the quarter was Rs. 110.1 billion, a YoY growth of 3.8%. On a reported basis, EBITDA for the quarter was Rs. 46.6 billion. Cash EBITDA excluding Ind AS 116 impact stands at Rs. 23.2 billion, growing by 6.5% YoY.
As per Communications Today, the company’s credit rating was upgraded to BBB- (Stable) by both ICRA and CARE Ratings, which will support its ongoing discussions on debt funding.
In conclusion, Vodafone Idea’s latest financial results show a positive trend, with narrowing losses and increased revenue. The company’s efforts to expand its 4G coverage and capacity, as well as its focus on customer experience, are likely to drive growth in the future. As reported by Communications Today, the company’s management remains optimistic about its prospects, citing early indicators of improvement across key business metrics.
