Vodafone Idea Q4 Results: Loss Narrows 6.62% to ₹7,166 Crore, ARPU at ₹164; Board Approves ₹20,000 Crore Fundraise

Vodafone Idea's Q4 net loss narrows 6.62% to ₹7,166 crore, ARPU rises to ₹164. The telco's board approves a plan to raise ₹20,000 crore through FPO or private placement. Gross revenue growth remains modest at ₹11,014 crore, up 3.83% YoY, while Ebitda rises 7.47% to ₹4,659 crore.

Vodafone Idea Limited (VIL) reported its Q4 FY25 results, showing a significant improvement in financial performance compared to the previous quarter. The company's net loss narrowed by 6.62% to ₹7,166 crore, a substantial decrease from the ₹7,674.6 crore loss reported in the same period last year. This narrowing of the net loss was primarily driven by a 3.8% year-over-year (YoY) increase in revenue to ₹11,010 crore and a 7.47% YoY rise in EBITDA to ₹4,659 crore.

The company's average revenue per user (ARPU) also showed a positive trend, rising to ₹164 from ₹153 in the previous quarter, reflecting a 6.5% YoY increase. The increase in ARPU is a positive indicator of the company's ability to generate more revenue per user, which is crucial for its financial health.

In addition to the financial results, VIL's board of directors approved a plan to raise up to ₹20,000 crore through a follow-on public offer (FPO) or private placement. This fundraising plan aims to support the company's capital expenditure (capex) plans and other strategic initiatives. The board's decision to approve the fundraising plan indicates a strong commitment to the company's long-term growth and financial stability.

Despite the positive financial results, VIL continues to face challenges in its debt management. The company's debt from banks reduced from ₹4,040 crore in March 2024 to ₹2,330 crore in March 2025, but the company still needs to secure additional debt funding to support its capex plans. The conversion of the government's outstanding spectrum dues into equity shares by the Centre is expected to lower the outstanding debt on VIL's books and provide a significant lifeline for the company.

Several leading brokerages have reacted positively to the government's decision to convert the spectrum dues into equity shares, with Nomura, Ambit Capital, and Citi International maintaining a 'Buy' rating on the stock. Nomura believes that the government's decision will ease concerns over VIL's repayment concerns and improve its outlook for future debt raises.

Overall, VIL's Q4 FY25 results demonstrate a significant improvement in financial performance, driven by a narrowing net loss, an increase in revenue and EBITDA, and a rise in ARPU. The company's board's approval of a ₹20,000 crore fundraising plan further indicates a strong commitment to its long-term growth and financial stability. However, VIL still needs to secure additional debt funding to support its capex plans and manage its debt effectively.

References:
[1] https://m.economictimes.com/markets/stocks/news/vodafone-idea-shares-in-focus-ahead-of-q4-results-loss-expected-to-widen-yoy/amp_articleshow/121503651.cms
[2] https://www.etnownews.com/markets/vodafone-idea-q4-results-2025-net-loss-narrows-to-rs-7166-cr-revenue-up-3-8-yoy-arpu-quarterly-earnings-details-article-151757818
[3] https://www.tradingview.com/news/moneycontrol:8a3672dee094b:0-relief-for-voda-idea-brokerages-welcome-material-positive-lifeline-by-centre-with-bullish-calls/