Vodafone Idea was volatile in 2025. The company was in the news constantly. More recently, the company said that it will receive Rs 58.36 bn from its promoter, the Vodafone Group.
In this editorial, we will consider the future prospects for the stock of Vodafone Idea in the next three years. However, readers should note that this is not a recommendation on the stock in any form.
About Vodafone Idea
Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. It is India’s leading telecom service provider. The company provides pan India Voice and Data services across 2G, 3G and 4G platform.
Vodafone Idea is developing infrastructure to introduce newer and smarter technologies, making both retail and enterprise customers future ready with innovative offerings.
The Positives that Are Currently Working in Favour of Vodafone Idea
- Major Relief
According to a report in the Deccan Herald, the Union government on 31 December 2025 has decided to freeze the adjusted gross revenue (AGR) dues to the debt-ridden Vodafone Idea (Vi) at Rs 876.95 bn and granted the company a five-year moratorium from payment.
The telco has been given the flexibility to pay the dues over a 10-year period, from the financial year 2031-32 to 2040-41.
This measure should help bring major relief and assist cash flows.
- Company to Receive Amount from Promoter Group
Vodafone Idea will receive Rs 58.36 bn from its promoter, the Vodafone Group, the company said in an exchange filing on 31 December 2025.
This is under the revised implementation agreement, relating to the resolution of its long-standing contingent liability with the promoters. This measure will also help the company’s cash flows.
- Improving Performance
Recent quarters have shown some improvement in revenue growth, EBITDA, and narrowing losses—suggesting operational stabilisation. Tariff hikes and better mix of higher-value subscribers have lifted average revenue per user (ARPU) modestly.
- Strong Brand Equity
Vodafone Idea possesses notable brand equity rooted in its legacy from Vodafone and Idea merger.
Challenges that Vodafone Idea Faces
- Debt Burden
Vodafone Idea carries sizeable debt load. This has put a strain on the finances, as high debt makes refinancing expensive and pushes interest obligations.
- Persistent Losses and Weak Profitability
Despite revenue growth, the company remains unprofitable with consistent net losses—no sustainable profit path yet.
- Competitive Pressures
Intense pricing wars has compressed margins. There has been a fall in the subscriber base with rivals dominating 4G/5G with superior infrastructure.
- Capex Pressures
High capex needs for network expansion, AI services, spam protection, and consumer offerings (e.g., roaming, insurance) poses a challenge without profitability.
Financial Numbers of Vodafone Idea
Let’s now take a look at the financial numbers of Vodafone Idea.
Financial Highlights of Vodafone Idea
| Rs m | FY23 | FY24 | FY25 |
| Revenues | 421,772 | 426,517 | 435,713 |
| Operating Profit | 171,374 | 172,403 | 191,472 |
| Net Profit Margin (%) | -69.5 | -73.2 | -62.8 |
| Profit After Tax | -293,011 | -312,384 | -273,834 |
Source: Equitymaster
In Q2 FY26, Vodafone India reported a drop in consolidated revenue to Rs 111,947 m, compared to Rs 109,322 m in the same period last year. The consolidated net loss was placed at Rs 55,270 m compared to Rs 71,760 m in the same period last year.
While the net losses have been narrowing, it is still significantly high.
What to Expect from Vodafone Idea in Next Three Years?
The stock is expected to experience significant volatility moving forward. The company’s future depends heavily on securing capital expenditure funding and regaining market share. This unfolds in the context of intense competition from highly profitable industry players.
While the government’s measures offer temporary relief, the substantial debt burden continues to pose a significant obstacle to growth and investment plans.
Evaluating the stock at this juncture requires careful consideration of the prevailing challenges. Investors must tread cautiously and undertake comprehensive, independent research on the company.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…
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