Vodafone Idea Q4 Result: Improvement!  Can VI Improve Customer Services and Bounce Back, 20000 Crore FPO on Cards

Vodafone Idea Q4 Result: Continuous loss and decrease in subscribers are making survival of Vodafone Idea (VI) difficult day by day. Vodafone Idea Q4 Result of this year presented loss of ₹7,166 crore which is less than the loss of last year Vodafone Idea Q4 Result ₹7,162.5 crore. Many subscribers left VI due to deficiency in service be it network problem or data speed. Company is still struggling for survival.

Detail of Vodafone Idea Q4 Result

Vodafone Idea Q4 Result showed its net loss as ₹7,166 crore. Vodafone Idea Q3 Result was ₹6,609 crore. It indicates that in fourth quarter loss of the company is increased. The rise in losses can due to increase in expenses, especially finance costs that include interest payments on debt and other liabilities. Finance costs are 59% of its revenue from operations, showing rise of  9% on quarterly basis and 3% rise year-on-year to ₹6,471 crore. However, if compare this fourth quarter result with the result of last year fourth quarter which was ₹7,675, it narrowed its losses. 
Revenue of VI from operations increased by 4% to ₹11,014 crore this year, due to improvement in its subscriber mix and rise in postpaid users. However, due to continuous subscriber loss, revenue of the company decreased around 1%. Due to rise in revenue on yearly basis, Vodafone Idea's earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 7.5% to ₹4,660 crore. On a quarterly basis, EBITDA decreased by 1.1% due to more expenses and less revenue from operations.

What is said by Akshaya Moondra, chief executive of VI on Vodafone Idea Q4 Result?

Akshaya Moondra, chief executive of Vodafone Idea said “This has been a turnaround quarter for us, marked by the highest average daily revenue in the past five years and a significant reduction in subscriber loss.” 
He further added, “Early indicators show improvement across key business metrics and with our ongoing investments, we are well placed to effectively participate in the growth opportunity offered by the Industry,” 
Moondra said, “the company remains engaged with lenders to secure debt financing to support our broader capex plans of ₹50,000–55,000 crore.”

FPO of 20000 Crore Approved by Board of VI

Vodafone Idea Ltd.’s board approved raising funds of ₹20,000 crore through a further public offering (FPO), private placement, or other methods. Company is confident to get support from the government and to arrange fund. The debt-loaded VI before it quarter result, pleaded before the Supreme Court for a waiver of it huge government dues as there were rejections from banks for further loans and told that it would not be able to operate beyond the current fiscal year without bank funding. The court rejected the plea. Before contacting the court, the company had done similar request to the government, asking for a waiver of interest, penalty, and other charges which was not considered by the government.
Due to no relief from government and Supreme Court, company need immediate fund to survive in the current situation and thus FPO can be one of the sources.

Future Course of Action and Expectations

Although, Vodafone Idea has been losing subscribers for a long time, the company’s subscriber losing streak has come down in this quarter. In fourth quarter, company lost 1.6 million in the fourth quarter which is much less than the loss of 5 million subscribers each in the Q 1 and Q 2. As of 31 March 2025, company had 198.2 million mobile subscribers. The company’s 4G/5G subscribers increased to 126.4 million from 126 million in previous quarter. The company's postpaid subscribers increased to 25.6 million from 25.2 million in the preceding quarter and 23.9 million last year. VI has been bettering its 4G services and has also launched out 5G in Mumbai, Chandigarh, and Patna in the first phase. In Delhi, 5G launched on 15 may and is expected to expand the services in all 17 circles by August 2025. Average revenue per user (ARPU) for the company, increased slightly to ₹164 from ₹163 in the preceding quarter. On the other hand, Airtel’s ARPU was flat at ₹245 in the quarter and Reliance Jio’s ARPU increased to ₹206.2 from ₹203.3 in the previous quarter. 
Vodafone Idea is in trouble due to huge burden of liabilities. As of 31 March, its total government dues is around ₹2 trillion, containing ₹1.19 trillion as spectrum dues and ₹83,400 crore AGR dues. Its pending debt from bank was ₹2,345 crore. In March, the government provided some relief to the company by converting an additional ₹36,950 crore worth of statutory dues into equity. This was the second dues conversion that took the government's stake in Vodafone Idea to 49%.

The future of the VI is not very clear yet. The future depends on the relief from government, ability of successful funding, improvement in its service, management efficiency etc. Although, Vodafone idea’s near future is not bright as it is struggling for survival but distant future can be much better once company becomes sustainable.