Beleaguered telecom player Vodafone Idea Ltd (Vi) shares rose in the early session on Monday, June 2 after reporting widening losses for the quarter ended March 31, 2025.
Vodafone Idea reported a consolidated net loss of Rs 7,166.1 crore for the quarter ending March, marking a marginal improvement from Rs 7,674.6 crore recorded in the same period last year.
However, losses widened compared to the previous quarter’s Rs 6,609.3 crore.
The company’s revenue grew 3.8 percent year-on-year to Rs 11,013.5 crore, on the back of tariff hikes and customer upgrades. The average revenue per user (ARPU) rose sharply by 14.2 percent year-on-year to Rs 175.
The telecom operator's CEO Akshaya Moondra termed Q4 as a “turnaround quarter,” highlighting progress across key business indicators and noting the highest average daily revenue in five years. He also revealed that Vi is actively exploring debt financing options to fund capital expenditures estimated between Rs 50,000 crore and Rs 55,000 crore over the next few years.
At 9.20 am, the firm's shares were trading at Rs 6.95 apiece, marginally higher by 0.4 percent on the National Stock Exchange.
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Macquarie maintained its 'underperform' rating with a target price of Rs 6.5 per share. The brokerage noted a soft Q4, missing estimates due to continued subscriber erosion and a higher interest burden.
The brokerage added that with the ongoing loss of subscribers, the problem reflects deep-rooted challenges with no quick fixes. With the government already the largest shareholder, Macquarie sees limited scope for further equity infusion by the Centre.
JPMorgan reiterated its 'neutral' rating with a target of Rs 8 per share. Q4 results were broadly in line on both revenue and EBITDA. While capex rose to Rs 4,230 crore from Rs 3,210 crore in Q3, it fell short of the Rs 5,000 crore estimate, said the global brokerage.
On the flip side, Switzerland-based UBS maintained a 'buy' rating with a target price of Rs 12.1 per share even though the brokerage said that the Q4 performance fell short of expectations, with continued market share losses.
Vodafone Idea's ARPU increased slightly by 0.6 percent to Rs 164, below UBS' estimate of Rs 167. EBITDA missed estimates by 3 percent, though margins were in line. Going ahead, the broking house will closely watch developments on the fundraise, capex plans, and 5G rollout.
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