7 days ago
Vodafone Idea Ltd (BOM:532822) Q4 2025 Earnings Call Highlights: Navigating Growth Amidst ...
Revenue: INR110.1 billion for Q4 FY25; INR435.7 billion for FY25, a 3.8% quarter-on-quarter growth and 2.2% annual growth.
EBITDA (excluding Ind AS 116): INR23.2 billion for Q4 FY25; INR92 billion for FY25, a 9.5% improvement over FY24.
Reported EBITDA (including Ind AS 116): INR46.6 billion for Q4 FY25; INR181.3 billion for FY25, an improvement of INR10.2 billion over FY24.
Depreciation and Amortization Expenses: INR55.7 billion for Q4 FY25.
Net Finance Costs: INR62.6 billion for Q4 FY25.
PAT Loss: INR273.8 billion for FY25, lower by INR38.5 billion compared to FY24.
CapEx Investment: INR42.8 billion for Q4 FY25; INR96.2 billion for FY25.
Cash and Bank Balance: INR99.3 billion as of March 31, 2025.
4G Population Coverage: Increased to 83% from 77% in March 2024.
4G Data Capacity Growth: 31% increase contributing to a 28% improvement in 4G speeds.
Broadband Site Count: 4,94,600 as of March 31, 2025, up from 4,30,700 as of March 31, 2024.
Store Expansion: Over 100 new flagship stores opened, totaling over 500 nationwide.
Warning! GuruFocus has detected 4 Warning Signs with BOM:532822.
Release Date: June 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Vodafone Idea Ltd (BOM:532822) has significantly improved its global ranking in mobile broadband speed, moving from 118th to 15th, and in the Network Readiness Index, moving from 60th to 49th.
The company has initiated the rollout of 5G services in major cities like Mumbai, Delhi, Chandigarh, and Patna, with plans to expand to all 17 circles by August 2025.
Vodafone Idea Ltd (BOM:532822) has made substantial investments in network expansion, adding over 6,900 unique broadband towers and enhancing 4G population coverage to 83%.
The company has raised equity of INR614 billion during the year, including significant contributions from the government, Vodafone Group entities, and vendors like Nokia and Ericsson.
Vodafone Idea Ltd (BOM:532822) has launched innovative postpaid and prepaid plans, such as the Vi Max Limitless postpaid data plans and the Super Hero and Nonstop Hero prepaid plans, which have driven growth in ARPU and subscriber base.
Despite improvements, overall broadband penetration in India remains below 65%, indicating a significant gap in market coverage.
The company's CapEx and network expansion plans are heavily dependent on securing additional debt funding, which is still in progress.
Vodafone Idea Ltd (BOM:532822) continues to face challenges with subscriber loss, although there has been a reduction in the rate of loss.
The AGR dues remain a significant financial burden, with an outstanding amount of approximately INR760 billion, impacting the company's financial stability.
The company's engagement with the government for further relief on AGR dues is ongoing, with no concrete resolution yet, adding uncertainty to its financial outlook.
Q: When should the benefits of network expansion become visible in terms of 4G additions? A: Akshaya Moondra, CEO: The 4G subscriber trajectory is improving, with a nominal increase last quarter and an addition of 0.4 million 4G subscribers this quarter. As we roll out our 5G network, we expect further improvements in subscriber metrics and a reduction in subscriber loss.
Q: How has the experience been with the initial 5G launches? A: Akshaya Moondra, CEO: The uptake in cities like Mumbai, Delhi, Chandigarh, and Patna has been very positive, with over 60% of 5G device users switching to 5G. The launch has improved both 5G and 4G experiences, with no significant complaints received.
Q: What are the plans for CapEx in FY26, and will the target of 220,000 sites be achieved? A: Akshaya Moondra, CEO: We have CapEx under implementation of INR5,000-6,000 crores, with plans to reach 84% population coverage. Achieving the full target of 220,000 sites will depend on securing bank funding.
Q: Is there any engagement with the government regarding tariff changes to usage-linked pricing? A: Akshaya Moondra, CEO: This is an industry decision, not government-related. The industry needs to find a solution for incremental usage pricing to increase ARPUs, as entry-level tariffs are already at a decent level.
Q: What is the status of the AGR dues and the potential for government relief? A: Akshaya Moondra, CEO: The AGR dues, including accrued interest, stand at INR760 billion. We are engaged with the government for a solution, and the government has the ability to offer relief, as seen with the 2021 reforms package.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
