One of the leading telecom service providers in India, with a large spectrum portfolio including mid-band 5G spectrum in 17 circles and mmWave spectrum in 16 circles, is worth watching.
Incorporated in March 1995, Vodafone Idea Limited is a major telecommunications provider in India offering a wide range of services such as voice, data, enterprise solutions, and other value-added services (VAS), including short messaging services, digital services, and IoT solutions. The company is a partnership between the Aditya Birla Group and the Vodafone Group.
In this article, we’ll take a closer look at the company’s financial performance, company overview, spectrum, government support, growth opportunities, company strategy, capex plans, and other critical factors.
With a market cap of Rs. 86,241 crores, shares of Vodafone Idea Limited are currently trading in the red at Rs. 7.96 on Tuesday. The stock has delivered positive returns of over 21 percent in the last one year, and has gained by around 23 percent in the last one month.
Company Overview
Vodafone Idea Limited (VIL) has a substantial spectrum portfolio of ~8,030 MHz, covering around 1,97,100 unique locations and operating close to 516,200 broadband sites. The company serves a subscriber base of nearly 198 million and provides coverage to over 1.2 billion people across India. The 5G rollout has been initiated in 26 cities across 15 circles, and in areas where the network is live, over 70 percent of eligible users have accessed Vi’s next-gen services.
VIL holds one of the highest spectrum allocations per million subscribers (excluding mmWave), which is expected to support near-term growth and facilitate the migration of 4G subscribers to 5G. The company ranks among the top 10 cellular operators globally in terms of subscribers within a single country and is the third-largest telecom operator in India, which is the second-largest wireless market in the world.
VIL has strong parentage, with the Aditya Birla Group and Vodafone Group being the promoters. In addition to acting as the policymaker and largest creditor, the Government of India holds a ~49 percent equity stake in Vodafone Idea following the conversion of debt into equity. This debt includes the net present value (NPV) of around Rs. 16,130 crores arising from interest due to the deferment of AGR and spectrum instalment payments in February 2023, as well as the NPV of around Rs. 36,950 crores related to certain spectrum dues scheduled for payment between FY26 and FY28.
Both the Vodafone Group and the Aditya Birla Group have made substantial capital investments in the company. Since the merger, Vodafone Idea has raised a total of Rs. 1,09,100 crores in equity, with about Rs. 61,400 crores raised in FY25 alone. Of this, the promoter group contributed about Rs. 27,000 crores, including Rs. 4,000 crores raised during FY25.
Following the government’s equity conversion, the company’s shareholding structure stands at roughly 26 percent for the promoter group (comprising 9.5 percent by the Aditya Birla Group and 16.07 percent by the Vodafone Group), 49 percent for the Government of India, and 25.43 percent for public shareholders.
As of June 2025, Vodafone Idea’s customer market share stood at 17.6 percent, compared to 33.6 percent for Bharti Airtel, 41 percent for Reliance Jio, and 7.8 percent for BSNL and MTNL combined.
Network Expansion Strategy
The company’s strategy centres on targeted network investments to enhance coverage and capacity. It is prioritising investments in 17 key circles to strengthen competitiveness, improve 4G coverage, and expand capacity for better customer experience. The 5G rollout is aligned with evolving customer requirements, with the deployment of advanced technologies such as Cloudification of Core, Dynamic Spectrum Refarming (DSR), and Open RAN. Additionally, the company has sufficient mid-band 5G spectrum to support its growth plans in the near term.
The company is enhancing its go-to-market approach across segments by increasing wallet share among large accounts and improving penetration in the SMB sector through digital solutions. It is also concentrating on the fast-growing Internet of Things (IoT) market by offering comprehensive services and investing in capabilities across high-growth areas such as CPaaS, cloud, and cybersecurity.
The company is further pursuing strategic partnerships to unlock digital opportunities. These collaborations aim to integrate services deeply to provide differentiated telecom experiences and added value for both partners and customers. Additionally, the company is exploring data monetisation opportunities by leveraging its platform capabilities.
Capex Plans & Funding Status
The company has capex plans for up to Rs. 55,000 crores, aimed at expanding 4G population coverage in 17 priority circles to enhance competitiveness and extending 4G services on the sub-GHz 900 band in 16 circles for improved coverage and user experience. For 5G, the focus is on launching and expanding services in key cities and regions, as well as increasing capacity to meet growing data demand. Since March 2024, the company has invested Rs. 12,010 crores in capex, resulting in a ~36 percent increase in 4G data capacity and a 7 percent rise in 4G population coverage to 84 percent.
The management has confirmed that the first-half capex guidance of Rs. 5,000-6,000 crores will be achieved by September 2025. Beyond that period, capex is expected to be aligned with cash generation–nearly Rs. 2,100-2,200 crores per quarter–unless additional funding is secured.
The company is actively engaging with lenders for debt financing and has made progress following the conversion of spectrum dues to equity and a credit rating upgrade. Discussions are ongoing with banks regarding AGR dues, and further talks are underway with the government. Additionally, non-bank funding options are being explored to ensure continuity in capex spending.
Financial Performance
In Q1 FY26, Vodafone Idea reported a consolidated revenue from operations of Rs. 11,022 crores, a marginal growth of around 0.07 percent QoQ and 5 percent YoY. Similarly, the company’s net loss for the quarter stood at Rs. 6,608 crores, representing an improvement of nearly 8 percent QoQ but a rise in net loss of around 3 percent YoY.
Written by Shivani Singh
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