Vodafone Idea (IDEA) Q2 24/25 earnings summary

Executive summary

• Board adopted unaudited Q2 FY25 results, focusing on network expansion, digital transformation, and strategic partnerships.

• Consolidated revenue for Q2 FY25 was INR 109.3 billion, up from INR 105.1 billion in the previous quarter.

• Major CapEx cycle initiated post-fundraise, with INR 13.6 billion invested in Q2 and INR 80 billion planned for H2 FY25.

• Mega deals worth INR 300 billion signed with Nokia, Ericsson, and Samsung for network equipment over three years.

• Significant capital infusions through FPO and preferential allotments, raising over INR 225 billion.

Financial highlights

• Q2 FY25 revenue at INR 109.3 billion, up 4% QoQ; customer revenues grew 5.6% due to July tariff hikes.

• Net loss for the six months ended September 30, 2024, stood at INR 136.08 billion, with a negative net worth of INR 953.96 billion.

• Total income for the quarter was INR 112.3 billion, with total expenses at INR 184 billion.

• EBITDA (ex-Ind AS 116) at INR 23.2 billion, up 10.5% QoQ; reported EBITDA at INR 45.5 billion, margin improved to 41.6%.

• Debt from banks reduced to INR 32.7 billion from INR 78.3 billion YoY; cash and bank balances at INR 136.2 billion.

Outlook and guidance

• CapEx of INR 80 billion planned for H2 FY25; 4G coverage target of 1.1 billion by March 2025 and 1.2 billion by September 2025.

• 5G rollout in key geographies to begin in Q4 FY25.

• Management expects recent capital infusions to support negotiations with lenders and vendors, and enable compliance with future obligations.

• Full impact of tariff increases on ARPU and revenue expected over the next couple of quarters.

• Management expects subscriber loss trend to reverse by end of FY25, but exact timing is uncertain.