Vodafone Idea Q3 Results: Net Loss Narrows to ₹6,609 Crore, ARPU Rises to ₹173
Vodafone Idea : Telecom giant Vodafone Idea Ltd (Vi) announced its Q3 FY25 financial results on February 11, 2025, reporting a marginal reduction in net loss to ₹6,609 crore from ₹6,986 crore in the same quarter last year. The company also posted a 4% increase in revenue, driven by higher Average Revenue Per User (ARPU) and a gradual shift towards premium plans.
Financial Performance Overview
Vodafone Idea’s revenue from operations stood at ₹11,117 crore in Q3 FY25, compared to ₹10,673 crore in Q3 FY24, marking a YoY growth of 4%.
One of the key takeaways from the earnings report is the company’s improved ARPU, which rose to ₹173 in Q3, a 4.7% increase from ₹166 in the previous quarter. This growth is attributed to the implementation of tariff hikes and customer migration to higher-value plans.
Despite these improvements, Vi continues to grapple with subscriber attrition. The total subscriber base fell from 215.2 million in Q3 FY24 to 199.8 million in Q3 FY25, indicating a significant decline. However, its 4G user base showed slight growth, reaching 126 million subscribers, up from 125.6 million in the year-ago period.
CEO’s Statement: Optimism for Future Growth
Akshaya Moondra, CEO of Vodafone Idea, emphasized that the company is accelerating its capital expenditure (capex) plans and strategically rolling out 5G services in key geographies.
“We are driving investments, and the velocity of capex deployment is set to accelerate in the coming quarters. The phased rollout of 5G services is underway, targeting key geographies. We are pleased to report the highest quarterly cash EBITDA since our merger—₹2,450 crore, a YoY growth of 15%. With intensifying investments, we anticipate further improvement in both operational and financial performance.”
Moondra also highlighted that Vi has secured approximately ₹26,000 crore in fresh equity capital over the past 10 months, including ₹1,910 crore from one of its promoters.
Debt & Financial Stability
Vodafone Idea remains highly leveraged, with a massive debt burden of ₹2,50,167 crore. However, the company has successfully reduced bank debt by ₹5,290 crore over the last year, bringing it down to ₹2,330 crore.
The cash and bank balance stood at ₹12,090 crore as of December 31, 2024.
The telecom operator has been actively engaging with lenders to secure debt financing for its ambitious ₹50,000–55,000 crore capex plan over the next three years. The company is betting on network expansion and 5G adoption to drive future revenue growth.
Government Support & Regulatory Reforms
The Department of Telecommunications (DoT) recently announced a bank guarantee (BG) waiver for spectrum auctions held before the Telecom Reform Package 2021, reducing Vodafone Idea’s financial burden.
The removal of ₹24,750 crore worth of bank guarantees is expected to free up liquidity and allow the company to allocate more resources to network expansion.
“This BG waiver confirms the government’s continued support for the telecom sector. It ensures that banking exposure is directed towards the proliferation of 4G and 5G networks,” Vodafone Idea said in its statement.
Capital Expenditure & Future Investments
Vodafone Idea has ramped up its capex spending, allocating ₹3,210 crore in Q3 FY25 and ₹5,330 crore in the first nine months of FY25. The company expects full-year capex to be around ₹10,000 crore.
The funds raised through its ₹18,000 crore Further Public Offer (FPO) in April 2024 have been partially utilized:
- ₹1,982 crore for spectrum payments and GST
- ₹1,528 crore for 4G and 5G equipment
- ₹2,688 crore for general corporate purposes
Vi plans to allocate an additional ₹12,750 crore from the FPO proceeds towards network expansion.
Stock Market Performance
Vodafone Idea’s stock price reacted negatively to the results, closing 3% lower at ₹8.82 on the BSE on February 11. The stock has seen significant volatility, with a 52-week high of ₹19.2 and a low of ₹6.60.
Despite the decline in subscriber base, the company’s improving ARPU and financial restructuring efforts indicate a gradual path toward stability. However, the success of 5G rollout and fundraising efforts will be key to Vi’s long-term survival.
Key Financial Ratios & Market Data
| Metric | Value |
|---|---|
| Market Cap | ₹62,969 crore |
| Current Price | ₹8.82 |
| 52-Week High / Low | ₹19.2 / ₹6.60 |
| Book Value | ₹-13.7 |
| Debt-to-Equity | High (Negative Equity) |
| ROCE (Return on Capital Employed) | -3.61% |
| ROE (Return on Equity) | -% (Negative) |
| Face Value | ₹10.0 |
| Industry P/E | 38.4 |
| Debt | ₹2,50,167 crore |
| Piotroski Score | 5.00 |
| ROIC (Return on Invested Capital) | -4.61% |
Conclusion: Can Vi Overcome Its Challenges?
Vodafone Idea’s Q3 FY25 performance shows marginal improvements in revenue and ARPU, but challenges remain, especially in terms of debt burden and subscriber retention.
With government support, fresh equity infusion, and an aggressive 5G rollout plan, the company aims to turn its financials around. However, competition from Jio and Airtel continues to pose challenges.
For Vodafone Idea to regain investor confidence, subscriber base stabilization, continued ARPU growth, and successful fundraising for capex expansion will be crucial.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.