Vodafone Idea (Vi), the embattled telecom giant, reported a consolidated net loss of Rs 7,166.1 crore for the fourth quarter of FY25, a slight improvement from Rs 7,674.6 crore in the same quarter last year. However, the losses increased from Rs 6,609.3 crore in the previous quarter, highlighting persistent operational and financial headwinds. Revenue from operations grew 3.8% YoY to Rs 11,013.5 crore in Q4FY25, offering a modest boost.
ARPU improves amid tariff hikes and customer upgrades
The average revenue per user (ARPU) rose to Rs 175 in the March quarter, a significant increase from Rs 153 a year ago, marking a 14.2% YoY growth. CEO Akshaya Moondra described the quarter as a “turnaround,” citing reduced subscriber loss and improved daily revenue metrics. “With our ongoing investments, we are well placed to effectively participate in the growth opportunity offered by the industry,” he added.
Full-year losses narrow but debt load remains a major concern
For the full fiscal year FY25, Vodafone Idea’s net loss stood at Rs 27,383.4 crore, an improvement from Rs 31,238.4 crore in FY24. Annual revenue also saw a slight 2.1% rise to Rs 43,571.3 crore. Despite this, the company’s financial health remains fragile. Its net worth stands at a negative Rs 70,320.2 crore, and total debt liabilities—comprising bank loans, spectrum dues, and adjusted gross revenue (AGR) obligations—exceed Rs 1.94 lakh crore.
Dependence on government support and fundraising critical
In a cautionary note, the company admitted its survival depends heavily on support from the Department of Telecommunications (DoT), successful equity and debt fundraising, and positive cash flow generation. “The group believes it would be able to secure DoT support, raise funding, and generate cash flow from operations,” it stated, reiterating its financial statements have been prepared on a going concern basis.
Board approves Rs 20,000 crore fundraising plan
To address mounting liabilities, Vodafone Idea’s board has approved a fundraising plan of up to Rs 20,000 crore. The funds will be raised through various channels, including public offers, private placements, qualified institutional placements, and convertible instruments. The company’s Capital Raising Committee has been tasked with evaluating the best route for this critical capital infusion.
Following a recent conversion of spectrum dues to equity, the Government of India now holds a 49% stake in Vodafone Idea, up from 22.6%. Despite the dilution, the promoter group retains operational control with a 25.6% shareholding.
Stock reacts negatively
Despite the announcements, investor sentiment remained subdued. Vodafone Idea shares fell 3.22% on Friday, closing at Rs 6.92 on the BSE.