Shares of Vodafone Idea Ltd rose 3.25% to ₹6.35 in early trade on August 18 after the telecom operator posted its June quarter results post-market hours on Thursday, showing a marginal sequential improvement in losses.
The company reported a net loss of ₹6,608 crore for Q1FY25, compared to ₹7,166 crore in the March quarter. Revenue for the quarter was stable at ₹11,022 crore, while EBITDA stood at ₹4,612 crore, largely unchanged from ₹4,659 crore in Q4FY24. However, margins remained under pressure, with EBITDA margin slipping to 41.8% from 42.3% in March — marking the third consecutive quarter of decline.
Operationally, Vodafone Idea’s subscriber base continued to shrink, standing at 197.7 million at the end of June. ARPU improved modestly to ₹165, compared to ₹163 in December. The company’s debt from banks was pegged at ₹19,300 crore, underlining the balance sheet challenges as it continues to seek fundraising and tariff hikes for stability.
Analysts note that while the narrowing of losses provides some relief, Vodafone Idea’s limited revenue growth, shrinking user base, and elevated debt remain key risks. The near-term stock reaction, however, is likely driven by the smaller-than-expected loss and relief that operations have not materially worsened.
