02-06-2025
Vodafone Idea share price gains after Q4 results 2025. Should you buy or sell?
Vodafone Idea share price surged as much as 1 per cent in Monday's trading session after the company reported narrowing in its net loss for the March quarter 2025, along with board approving fundraising of up to ₹ 20,000 crore.
At 9:55 am, the Vodafone Idea share touched an intraday high to ₹ 7 apiece on June 2, against previous close at ₹ 6.92 last week on Friday.
Vodafone Idea, on May 31, reported a consolidated net loss of ₹ 7,166.1 crore for the quarter ending March 2025, an improvement from the ₹ 7,674.6 crore loss recorded in the same quarter last year. However, the losses increased compared to ₹ 6,609.3 crore in the previous quarter (December).
The company's operating revenue for Q4FY25 grew 3.8% year-on-year to ₹ 11,013.5 crore from ₹ 10,606.8 crore.
The average revenue per user (ARPU) rose to ₹ 175 in the March quarter from ₹ 153 in Q4FY24, marking a 14.2% year-on-year increase, mainly driven by tariff hikes and customer upgrades.
'This has been a turnaround quarter for us, marked by the highest average daily revenue in the past 5 years and a significant reduction in subscriber loss. 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,' said Akshaya Moondra, CEO, Vodafone Idea.
For the entire fiscal year FY25, Vodafone Idea's losses decreased to ₹ 27,383.4 crore compared to ₹ 31,238.4 crore in the prior year. Meanwhile, revenue for FY25 grew by 2.1% year-on-year, reaching ₹ 43,571.3 crore.
The Vodafone Idea board of directors has given the green light to raise up to ₹ 20,000 crore, pending the necessary approvals from shareholders and regulatory or statutory authorities.
The raising of funds in one or more tranches will be 'either by way of further public offer or private placement (including qualified institutions placement) or through any other permissible mode and/or combination thereof as may be considered appropriate, by way of issue of equity shares or by way of issue of any other eligible instruments or securities including securities convertible into equity shares, Global Depository Receipts, American Depository Receipts or bonds including foreign currency convertible bonds, convertible debentures, warrants, non-convertible securities and/or composite issue of non-convertible debentures along with warrants…,' the company said.
According to Kush Ghodasara, CMT, Managing Partner, Invest Value, Vodafone Idea stock has been trading in the tight range of 6.46-9.80 since the month of October 202 and its also underperforming NIFTY benchmark index with a huge margin.
'Momentum indicators are trending flat and oscillating below the 45 level mark since the last two months which suggest no momentum for traders too. Therefore a fresh position is not recommended in the stock until we breach the 8.90 mark on the north side while the existing position should have strict stop loss at 6,' Ghodasara said.
However, Riyank Arora, Technical Analyst at Mehta Equities Ltd, believes that the Vodafone Idea stock is showing signs of stability above its support at ₹ 6.80. As long as the stock holds this level, a short-term upward move toward the target of ₹ 7.55 looks possible.
'A breakout above ₹ 7.00 with volume can add momentum to the move. However, if it breaks below ₹ 6.80, weakness could set in, and the stock may drift lower. Traders can consider buying with a stop-loss at ₹ 6.80, aiming for ₹ 7.55 in the near term. The trend remains cautiously positive above support,' Arora said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
