Vodafone Idea Narrows Q4 Loss to Rs 7,166 Crore as Revenue Grows 3.8% and ARPU Hits Five-Year High
Vodafone Idea’s Q4 loss narrows to Rs 7,166 crore as revenue rises by 3.8%
Vodafone Idea Limited (Vi), one of India’s major telecom service providers, reported a consolidated net loss of Rs 7,166.1 crore for the quarter ended March 2025. This marks a marginal improvement over the Rs 7,674.6 crore loss recorded in the same quarter last year, signaling gradual progress in the company’s long-term turnaround efforts. However, the loss widened when compared to the previous quarter’s Rs 6,609.3 crore, indicating ongoing financial stress despite some positive operational indicators.
The company reported a year-on-year revenue growth of 3.8%, with total revenue reaching Rs 11,013.5 crore during the March 2025 quarter. This uptick is attributed to recent tariff hikes and an increase in customer upgrades. Notably, Vodafone Idea’s Average Revenue Per User (ARPU) surged by 14.2% on a year-over-year basis, rising to Rs 175—its highest level in recent years. CEO Akshaya Moondra described Q4 FY25 as a “turnaround quarter,” emphasizing notable improvements in key performance metrics and highlighting that the company recorded the highest average daily revenue in the last five years.
Despite these encouraging signs, Vodafone Idea’s financial position remains fragile. For the full fiscal year 2025, the company managed to reduce its net loss to Rs 27,383.4 crore from Rs 31,238.4 crore in FY24. Meanwhile, its annual revenue increased modestly by 2.1% to Rs 43,571.3 crore. Yet, the telecom giant continues to grapple with a negative net worth, which stood at Rs 70,320.2 crore as of March 31, 2025.
In an effort to improve its financial stability and invest in network expansion, Vodafone Idea plans significant capital expenditure ranging between Rs 50,000 crore and Rs 55,000 crore over the coming years. To support these investments, the company’s board has approved a capital raise plan of up to Rs 20,000 crore through a combination of public issues, private placements, convertible securities, and foreign currency bonds. The final structure and timing of this fundraising will be determined by the company’s Capital Raising Committee.
The telecom company is also navigating a substantial debt burden. Its total debt, including bank borrowings and long-term liabilities related to spectrum and adjusted gross revenue (AGR), stands at a massive Rs 1.97 lakh crore. Vodafone Idea stated that its ability to meet debt obligations will depend heavily on sustained operational cash flow, successful capital raising initiatives, and continued support from the Department of Telecommunications (DoT).
Following the Indian government’s decision to convert outstanding spectrum dues into equity, the government’s stake in Vodafone Idea has risen to 49%. Despite this, operational control remains with the promoter group, which holds a 25.6% stake in the company.
The latest financial results underscore both the ongoing challenges and emerging opportunities for Vodafone Idea as it strives to stabilize and grow in the hyper-competitive Indian telecom market. For video news, visit our YouTube channel THE OLIGO.
