Vodafone Idea (Vi) on 30th May 2025 released its audited Q4FY2025 results, which caused a stir in the Indian telecom industry, as in this quarter the company had positive revenue, ARPU (average revenue per user) improved and the net loss was smaller than the previous year’s same quarter. These figures matter because Vi remains under financial pressure with heavy debt and spectrum liabilities, and even small improvements can signal progress or highlight risks.Whether you’re an investor or a user, the performance of Vi – along with its competitors Reliance Jio and Bharti Airtel – is a good indicator of competition in the sector, pricing going forward, network upgrades, and the long-term viability of the company.
A few of the important cash-related estimations and analysis of Vodafone Idea (Vi) Q4 FY2025 results:
- Revenue: Vi’s total revenue from operations in Q4FY25 was ₹11,013 crores; an increase of 3.8% YoY from ₹10607 crores for Q4 FY24. For FY2025 revenue overall, there is a marginal increase of 2.1% to ₹43,571 crores. This minimal growth rate was to least, partly due to continued cost increases and activities to retain high-paying customers.
- EBITDA: EBITDA: The cash EBITDA (operating earnings before interest, taxes, depreciation and amortization, pre-IndAS 116) ambitiously achieved ₹2,321 crores, a year-over-year growth of 6.5%. On a consolidated basis EBITDA was ₹4,660 crores (with a 42.3% margin) v/s ₹4,336 crores (40.9%) prior year.
Net Profit/Loss: The total net loss for the quarter Q4FY25 shrank a bit but still showed ₹7,166.1 crore compared to a net loss of ₹7,674.6 crore for Q4FY24. - Subscriber Metrics and ARPU: At the end of the quarter, the total subscriber base reached 198.2 million. Importantly, net subscriber losses decreased significantly – only a loss of 1.6 million this quarter as compared to 5.2 million lost in Q3FY25. Vi’s ARPU (excl. machine to machine customers) improved to ₹175, from ₹153 in Q4FY24 – 14.2% YoY. This increase is due to Vi’s focus on higher value customers, and tariff increases resulting in higher ARPU and customer affordability.
- For context, Vi’s leading : During the fourth quarter of FY25, Jio reported normal revenue of ₹33,986, EBITDA of ₹17,016, and profit after tax of ₹7,022. For reference, Bharti Airtel’s revenues in the fourth quarter of FY25 was ₹47,876 with consolidated profit of ₹11,022 (adjusted profit after tax: ₹5,223). Both companies also reported strong ARPU, Jio’s at about ₹206 and Bharti Airtel’s at approximately ₹245, both of which are significantly greater than Vi’s ARPU of 175.
Operational Highlights and Network Investments
- Beyond headline numbers, Vi’s quarter included several operational strides as it builds its network and customer offering:
- 5G Rollout: Vi launched 5G services in four major cities (Mumbai, Delhi, Chandigarh, Patna) during Q4. Management declared that 5G will be expanded to all 17 circles where Vi holds 5G spectrum by August 2025.This upgrade is essential for maintaining competitiveness with Jio and Airtel, both of which have already implemented extensive 5G rollouts.
- 4G Capacity and Coverage: Vi continued to boost its existing 4G network. Its 4G population coverage now reaches about 83% of India, up from lower levels a year ago. The company improved 4G data capacity by ~31% and average 4G speeds by ~28% year-over-year, enhancing user experience in light of shrinking data availability.
- Capital Spending and Partnerships: Vi continues to spend significantly on its network, not only in 4G, but for a total of ₹9,570 crore in FY2025 capex. To improve its financial situation, Vi’s board has approved an increase in the company’s capital up to ₹20,000 crores in total, comprised of equity and debt. The funding will be used primarily in debt payments, network expansion (including 5G), and general operations.. There were no major new consumer partnerships announced for Vi this quarter, unlike Airtel’s Apple TV+ tie-up or Jio’s streaming deals. Vi’s focus remains on network buildout and financial restructuring.
Management Commentary and Strategic Outlook
In Akshaya Moondra’s words, Vi’s CEO, Q4FY25 was a **”turnaround quarter”**. Moondra referenced the “highest average daily revenue in the last 5 years” and a large reduction in subscriber losses, with improving retention and a new tariff plan. There are several strategic takeaways from the earnings disclosures:
- Going-Concern Measures: Vi reiterated that it needs government and stakeholder support to turnaround a large negative net worth (over ₹70,320 crore) and large deferred dues (over ₹1,95,000 crore in spectrum and AGR payments).
- Fundraising Plans: The board’s approval of up to ₹20,000 crore fundraising (subject to approvals) signals urgency. Instruments under consideration include equity shares, convertible bonds, GDR/ADRs, etc.. If successful, this infusion would reduce debt and fund network projects.
- 5G and Capacity Expansion: Management underscored 5G plans as a differentiator. The company is on track for full 5G coverage by late 2025, and is expanding fiber backhaul to support high data traffic. These investments aim to improve customer experience and ARPU in future quarters.
Comparison with Jio and Airtel
Vodafone Idea operates in a fiercely competitive market. In Q4FY25:
- Reliance Jio: (Reliance Jio Platforms) has realized a revenue increase of 17.7%, to ₹33,986 crore, with EBITDA of ₹17,016 crore, an 18.5% increase, and PAT of ₹7,022 crore, year-over-year growth of 25.7%. The company has continued to grow subscribers, reaching a total of 488 million, aggressively expanded 5G coverage, and is showing an ARPU of about ₹206. Access to strong cash flows and scale gives Jio a lot of options for growing this business.
- Bharti Airtel: Posted consolidated revenue ₹47,876 crore (+27% YoY, lifted by India and Africa businesses) and PAT ₹11,022 crore (+432%, helped by tower sale gains). Its reported ARPU of ₹245 in India was much higher, reflecting a premium customer mix and postpaid focus. Airtel continued network buildout (adding towers, fiber, and partnerships like Apple TV+) and raised pricing.
Compared to these peers, Vi’s scale is much smaller (Q4 revenue ~₹11,000 cr vs ₹34,000+ cr and ₹48,000 cr for Jio and Airtel). Vi’s continuing losses stand in contrast to Jio and Airtel profits. However, Vi’s recent tariff increases (similar to rivals’) have boosted its ARPU and revenue modestly. Any further customer churn reduction and successful funding will be critical for Vi to stay in the race.
Conclusion and Outlook
Overall, there are some green shoots in Vodafone Idea’s Q4 FY2025 results, but challenges remain. Revenue and EBITDA were in expansion, ARPU was at a multi-year high, and subscriber losses were coming down, indicating that recent investments in the network and pricing action are having an impact. Management’s 5G ambitions and the board’s significant funding plans are meant to build on this momentum.
Looking ahead, much will hinge on Vi’s ability to raise capital and control costs. The transition to a stronger balance sheet would allow sustained network upgrades and service quality improvements. The next quarterly report (Q1 FY2026) will be watched closely: analysts will look for continued revenue growth, further narrowing of losses, and updates on spectrum/equity transactions. For now, Vi’s results provide cautious optimism for investors and signal that in the telecom sector’s next phase, Vi is fighting hard to stay competitive with Jio and Airtel.
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