Shares of Vodafone Idea Ltd declined 3.06% to ₹8.55 on Tuesday after the telecom company reported mixed financial results for Q3 FY25. Despite a 4% year-on-year (YoY) increase in revenue, subscriber losses and rising debt continue to impact the company’s outlook. Vodafone Idea’s consolidated net loss stood at ₹6,609 crore, lower than the ₹6,986 crore loss in the same period last year but still reflecting ongoing financial challenges.
Revenue from operations grew to ₹11,117 crore, up from ₹10,673 crore in Q3 FY24. However, it fell 2% short of MOFSL’s estimates, primarily due to lower-than-expected subscriber retention. The company’s wireless ARPU rose 5% QoQ to ₹163, slightly below estimates of ₹165, while customer ARPU (excluding M2M) increased 4% QoQ to ₹173. Despite this, Vodafone Idea lost 5.2 million subscribers during the quarter, continuing its downward trend.
The stock has a market capitalization of ₹616.86 billion, with a day range of ₹8.62 – ₹8.80 and a 52-week range of ₹6.61 – ₹19.18. The average trading volume stood at 8.62 million.
Vodafone Idea’s net debt (excluding leases but including accrued interest) rose ₹5,500 crore sequentially to ₹2.18 lakh crore. The telecom operator also owes ₹2.27 lakh crore to the government for deferred spectrum and AGR dues. Capex surged to ₹3,200 crore in Q3, more than double the ₹1,400 crore spent in Q2, with the management guiding ₹10,000 crore capex for FY25.
Vodafone Idea continued to lose market share to Bharti Airtel and Reliance Jio. Bharti Airtel led revenue market share (RMS) gains, adding 80 bps QoQ (225 bps YoY), while Vodafone Idea’s RMS fell 30 bps QoQ (down 160 bps YoY). Similarly, Vodafone Idea’s subscriber market share dropped 55 bps QoQ and 155 bps YoY, further widening the gap between competitors.
Despite subscriber losses, Vodafone Idea reported its highest quarterly cash EBITDA in six years at ₹2,450 crore, reflecting a 5.4% sequential growth. The total subscriber base stood at 199.8 million, with 126 million 4G users, while bank debt amounted to ₹2,330 crore as of December 31, 2024.
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