Vodafone Idea Q4 Results: Net loss narrows to ₹7,166 crore; board approves ₹20,000 crore fund raising

Vodafone Idea on Friday reported narrowing of its net losses during the fourth quarter of FY25, along with its board of directors approving raising funds of up to ₹20,000 crore.

The beleaguered telecom company, Vodafone Idea posted a consolidated net loss of ₹7,166.1 crore during the quarter ended March 2025, down from a loss ₹7,674.6 crore in the year-ago period. However, losses widened from ₹6,609.3 crore in the December quarter.

The company’s revenue from operations in Q4FY25 rose 3.8% to ₹11,013.5 crore from ₹10,606.8 crore, year-on-year (YoY).

The average revenue per user (ARPU) stood at ₹175 in the March quarter against ₹153 in Q4FY24, the year-on-year growth of 14.2%, driven by tariff hike and customer upgrades.

“This has been a turnaround quarter for us, marked by the highest average daily revenue in the past 5 years and a significant reduction in subscriber loss. Early indicators show improvement across key business metrics and with our ongoing investments, we are well placed to effectively participate in the growth opportunity offered by the industry,” said Akshaya Moondra, CEO, Vodafone Idea.

He further informed that VIL remains engaged with lenders to secure debt financing to support its broader capex plans of ₹50,000–55,000 crore.

For the full year FY25, Vodafone Idea’s losses narrowed to ₹27,383.4 crore against ₹31,238.4 crore in the previous fiscal. Revenue in FY25 increased 2.1% YoY to ₹43,571.3 crore.

“The group has incurred a loss of ₹273,834 million for the year ended March 31, 2025 and net worth stands at negative ₹703,202 million ( ₹70,320.2 crore) at that date,” Vodafone Idea said in the footnotes to the consolidated financial statement.

As of 31 March 2025, the group’s outstanding debt from banks (including interest accrued but not due) is ₹2,345.1 crore and deferred payment obligation towards Spectrum which is payable over the years till FY 2044 and towards AGR which is payable over the years till FY 2031 adds up to ₹1,94,910.6 crore.

“The group’s ability to settle the above liabilities is dependent on further support from the DoT on the AGR matter, fund raise through equity and debt and generation of cash flow from operations. Based on current efforts, the Group believes that it would be able to get DoT support, successfully arrange funding and generate cash flow from operations,” debt-ridden telco said.

Accordingly, the consolidated financial results have been prepared on a going concern basis, Vodafone Idea added.

With the recent conversion of spectrum dues to equity, the Government of India’s shareholding in Vodafone Idea has risen to 49% from 22.6%. The promoter shareholding now stands at 25.6%, and they continue to have operational control of the company.

The company said that the recent dismissal of its plea on AGR dues relief by the Supreme Court does not preclude it from further engaging with the government based on its foreseeable cash flows to arrive at an appropriate solution on this issue.

Vodafone Idea Fundraising

The board of directors of Vodafone Idea has approved the fundraising of upto ₹20,000 crore, subject to approval from shareholders, regulatory/statutory approvals.

The raising of funds in one or more tranches will be “either by way of further public offer or private placement (including qualified institutions placement) or through any other permissible mode and/or combination thereof as may be considered appropriate, by way of issue of equity shares or by way of issue of any other eligible instruments or securities including securities convertible into equity shares, Global Depository Receipts, American Depository Receipts or bonds including foreign currency convertible bonds, convertible debentures, warrants, non-convertible securities and/or composite issue of non-convertible debentures along with warrants…,” the company said.

The board has authorised the Capital Raising Committee to evaluate and decide the potential route of fund raising, including all related matters.

On Friday, Vodafone Idea share price ended 3.22% lower at ₹6.92 apiece on the BSE.

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