During Monday’s trading session, shares of one of the leading telecom service providers in India surged 3 percent on BSE. The company has recently reported its Q4 FY25 results, with a decline in revenue and a widening loss, along with fundraising plans.
With a market cap of Rs. 76,057 crores, at 02:54 p.m., the shares of Vodafone Idea Limited were trading in the green at Rs. 7.02 on BSE, up by around 1.5 percent, as compared to its previous closing price of Rs. 6.92. The stock has delivered negative returns of more than 57 percent in one year, and has fallen by nearly 1 percent in the last month.
What’s the News
According to the latest regulatory filings on the stock exchanges, Vodafone Idea Limited announced the financial results for Q4 FY25 on Friday after market hours. For Q4 FY25, Vodafone Idea reported a consolidated revenue from operations of Rs. 11,013.5 crores, reflecting a marginal decline of around 1 percent QoQ from Rs. 11,117.3 crores in Q3 FY25, but a slight year-on-year rise of about 4 percent from Rs. 10,606.8 crores in Q4 FY24.
Net loss widened to Rs. 7,166 crores in Q4 FY25, marking a rise of around 8.4 percent QoQ from a loss of Rs. 6,609 crores in Q3 FY25, but a 6.6 percent YoY improvement compared to the Rs. 7,674.6 crores loss recorded in Q4 FY24.
EBITDA came in at Rs. 4,660 crores during Q4 FY25, indicating a decline of about 1.1 percent QoQ from Rs. 4,712 crores in Q3 FY25, but a year-on-year expansion of around 7.5 percent YoY compared to Rs. 4,333 crores in Q4 FY24.
Further, the company’s Board approved a fundraising plan of up to Rs. 20,000 crores. The Capital Raising Committee has been authorised to evaluate and determine the appropriate route for the fundraising and handle all related matters.
During the March quarter, Vodafone Idea lost 1.6 million subscribers, bringing the total subscriber loss for the full fiscal year to 14.4 million. The Average Revenue Per User (ARPU) rose slightly to Rs. 164 from Rs. 163 in the previous quarter. However, this remains below competitors like Reliance Jio (Rs. 206) and Bharti Airtel (Rs. 245).
Vodafone Idea managed to raise over Rs. 61,400 crore in FY25 through various means, including a Follow-on Public Offering (FPO), promoter contributions, a preferential share issue, and the conversion of nearly Rs. 37,000 crore in spectrum dues into equity. Despite these efforts, the company continues to carry a substantial debt burden.
As of now, Vodafone’s total outstanding debt amounts to Rs. 1.94 lakh crore, which includes deferred spectrum payments and AGR (Adjusted Gross Revenue) dues. Additionally, the company owes Rs. 1,600 crore in bank loans (excluding interest), and AGR dues totalling Rs. 16,428 crore are scheduled for repayment within the current financial year.
Written by Shivani Singh
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