Shares of Vodafone Idea (Vi) fell 3% to ₹6.92 apiece on May 30, ahead of its Q4 FY25 earnings announcement and a likely fundraising plan. The telecom major has been struggling with financial challenges, including high debt and subscriber losses, making this quarter’s results crucial for investors.
Key Financial Expectations
- Net Loss: Analysts expect Vi’s Q4 net loss to widen, with estimates ranging from ₹7,166 crore to ₹7,626 crore.
- Revenue Growth: Revenue is projected to rise 3.8% YoY to ₹11,013 crore, driven by tariff hikes and customer upgrades.
- ARPU Improvement: Average revenue per user (ARPU) is expected to increase to ₹175, reflecting a 14.2% YoY growth.
Fundraising Plans & Government Stake
Vi’s board has approved a ₹20,000 crore fundraising plan, which could be executed through equity, debt, or convertible instruments. The Government of India’s stake in the company has risen to 49% following the conversion of spectrum dues into equity.
Market Reaction & Future Outlook
Despite today’s decline, Vi’s stock has gained 2% in the past five days but remains down 52% over the past year. Investors are closely watching the fundraising strategy, as Vi aims to expand its 4G and 5G networks while managing ₹1.95 lakh crore in AGR and spectrum dues.
With subscriber losses slowing and ARPU improving, Vodafone Idea is positioning itself for a turnaround. However, the Supreme Court’s rejection of AGR dues relief remains a challenge.
