Vodafone Idea’s Capex for FY25 Tells a Positive Story
In a significant development, Vodafone Idea Limited (VIL), the third-largest telecom operator in India, has made good on its promise to utilise funds raised via equity to fuel its capital expenditure (capex). According to a report by TelecomTalk, the telco’s capex for FY25 has been substantial, with the company spending Rs 95.7 billion, a significant increase from Rs 18.5 billion in FY24.
As TelecomTalk reports, Vodafone Idea’s fundraising efforts have been aimed at expanding its network presence and enhancing consumer experience. The company’s strategy appears to be paying off, with its 4G coverage growing from 77.2% to 82.7% year-over-year (YoY). Additionally, Vodafone Idea has launched 5G services in four cities, with plans to expand to more locations in the coming months.
The company’s debt from banks has also decreased, from Rs 40.4 billion in March 2024 to Rs 23.3 billion in March 2025. This reduction in debt, coupled with the significant increase in capex, suggests that Vodafone Idea is serious about improving its mobile networks and turning its business around. As TelecomTalk notes, the company’s net loss has narrowed significantly from the previous year, and its top-line revenues and average revenue per user (ARPU) have shown slow but steady improvement.
However, despite these positive developments, Vodafone Idea still faces significant challenges. One of the major concerns is the payment of adjusted gross revenue (AGR) dues, which could have a lasting impact on the company’s future. According to TelecomTalk, the company’s Q1 FY26 results will be crucial in determining whether its progress will continue or stall.
Vodafone Idea’s capex for Q4 FY25 was particularly noteworthy, with the company spending Rs 42.3 billion, more than it spent in the entire previous year. This significant investment in network infrastructure is a clear indication of the company’s commitment to improving its services and competing with its rivals.
In conclusion, Vodafone Idea’s capex for FY25 tells a positive story about the company’s commitment to improving its mobile networks and turning its business around. As TelecomTalk reports, the company’s progress will be closely watched in the coming quarters, particularly with regards to its Q1 FY26 results. With its fundraising efforts and capex plans, Vodafone Idea appears to be on the right track, but it still faces significant challenges that need to be addressed.
The information in this article was sourced from TelecomTalk, which reported on Vodafone Idea’s capex for FY25 and its implications for the company’s future.
