Vodafone Idea Q4 FY25 Earnings Update – Telecom operator Vodafone Idea reported a consolidated net loss of ₹7,166.1 crore for the quarter ending March 2025, reflecting a marginal improvement compared to the ₹7,674.6 crore loss in the same quarter last year.
However, on a sequential basis, the loss widened from ₹6,609.3 crore reported in the December 2024 quarter, signaling continued financial pressure.
In a key development, the company’s board has approved a ₹20,000 crore fundraising plan, aimed at strengthening its balance sheet and supporting network expansion and 5G rollout efforts.
Investors and stakeholders are closely watching how the infusion of funds will impact Vodafone Idea’s financial health and competitive positioning in the coming quarters.
Vodafone Idea Narrows Q4 Loss to ₹7,166 Crore; Board Approves ₹20,000 Crore Fundraising Plan
Vodafone Idea Ltd. on Friday reported a narrowing of its consolidated net loss to ₹7,166.1 crore for the fourth quarter of FY25, down from ₹7,674.6 crore in the same quarter last year. However, the losses widened sequentially from ₹6,609.3 crore in Q3 FY25.
Despite its ongoing financial struggles, the company also announced that its board of directors has approved a fundraise of up to ₹20,000 crore, subject to shareholder and regulatory approvals.
Key Financial Highlights (Q4 FY25):
- Revenue from operations rose 3.8% YoY to ₹11,013.5 crore, compared to ₹10,606.8 crore in Q4 FY24.
- ARPU (Average Revenue Per User) increased to ₹175, up 14.2% YoY, supported by tariff hikes and customer upgrades.
- CEO Akshaya Moondra called it a “turnaround quarter”, noting the highest average daily revenue in five years and reduced subscriber loss.
Full-Year Performance (FY25):
- Net loss narrowed to ₹27,383.4 crore, from ₹31,238.4 crore in FY24.
- Annual revenue stood at ₹43,571.3 crore, a 2.1% YoY increase.
Debt and Liabilities:
- As of March 31, 2025, Vodafone Idea reported a negative net worth of ₹70,320.2 crore.
- Outstanding bank debt: ₹2,345.1 crore.
- Deferred obligations (Spectrum + AGR dues): ₹1.94 lakh crore, payable through FY2044 and FY2031 respectively.
The company reiterated its dependence on continued support from the Department of Telecommunications (DoT), fresh equity/debt infusion, and improved operational cash flows for its survival. Accordingly, the financials have been prepared on a ‘going concern’ basis.
Government and Promoter Stake:
Following the recent conversion of spectrum dues into equity, the Government of India’s stake in Vodafone Idea has risen to 49% (from 22.6%). The promoter group now holds 25.6%, while continuing to retain operational control.
AGR Relief and Legal Standpoint:
The company acknowledged the recent Supreme Court dismissal of its plea for AGR relief but clarified it is still in dialogue with the government for a resolution based on projected cash flows.
Fundraising Details:
The ₹20,000 crore fundraise may be executed in multiple tranches, via:
- Public offer, private placement, QIP, or convertible securities
- Instruments may include equity shares, GDRs, ADRs, FCCBs, NCDs, debentures, or warrants
A dedicated Capital Raising Committee has been formed to explore and finalize the fundraising mechanism.
Stock Movement:
Vodafone Idea shares closed 3.22% lower on Friday at ₹6.92 apiece on the BSE.
Disclaimer: This article is for informational purposes only. Investors are advised to consult certified financial advisors before making investment decisions.