Vodafone Idea (IDEA) Q3 24/25 earnings summary

Executive summary

• Revenue for Q3 FY25 reached INR 111.2 billion, up 4.2% year-over-year, with EBITDA (ex-Ind AS 116) at INR 24.5 billion, a 15% YoY increase and the highest since the merger.

• Net loss for the quarter was INR 66.1 billion; net loss for the nine months ended December 31, 2024, stood at INR 202.2 billion, with a negative net worth of INR 1,020.1 billion.

• Significant capital was raised through FPO and preferential allotments, totaling over INR 225 billion during the period, including Rs. 180 billion via FPO in April 2024 and Rs. 20.75 billion via preferential allotment in May 2024.

• The company continues to operate as a going concern, supported by recent capital infusions and ongoing negotiations with lenders and vendors.

• Network expansion accelerated with 6,900 broadband towers added in nine months, 5,000 in Q3 alone, and 4G coverage reaching 1.07 billion people (80% of population); 5G rollout initiated with launches in key metros.

Financial highlights

• EBITDA margin (ex-Ind AS 116) improved to 22%; reported EBITDA margin rose to 42.4%.

• Depreciation and amortization (ex-Ind AS 116) at INR 41.6 billion; net finance costs at INR 47.5 billion.

• Cash and bank balance stood at INR 120.9 billion, mainly from FPO proceeds for CAPEX.

• Net loss for the quarter was INR 66.1 billion, an improvement from INR 69.9 billion in the same quarter last year.

• Exceptional gain of INR 7.56 billion recognized due to TDSAT ruling accepted by DoT.

Outlook and guidance

• Full-year CAPEX expected to be around INR 100 billion, with 4G coverage target of 1.1 billion by March 2025 and 1.2 billion (90% population) as the next milestone.

• 5G launches prioritized in key metros, with further guidance on additional cities expected in the next earnings call.

• The company expects to settle liabilities as they fall due, leveraging capital infusions, ongoing negotiations, and potential conversion of spectrum and AGR dues into equity as per the Telecom Reforms Package 2021.

• ARPU growth expected from further tariff increases and subscriber upgrades.