Vodafone Idea's Shocking Turnaround? Lowest Loss in 19 Quarters & 5G Surge!

Vodafone Idea Limited announced its financial performance for the quarter ended September 2025, reporting a net loss of ₹5,524 crore. This loss is narrower compared to the ₹6,608 crore loss recorded in the previous quarter, marking the company's best performance in 19 quarters.

Revenue for the quarter grew by 1.6% sequentially to ₹11,194 crore, up from ₹11,022 crore in the preceding quarter. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a 1.6% increase, reaching ₹4,684.5 crore, with the operating margin slightly improving to 41.9%.

The company's Average Revenue Per User (ARPU) increased to ₹180, up from ₹166 reported a year earlier, indicating growing revenue from its subscriber base.

Vodafone Idea served a total of 196.7 million subscribers as of September 30, 2025, with approximately 65% of them utilizing 4G or 5G services. The company's Capital Expenditure (Capex) for the quarter was ₹17.5 billion.

The rollout of Vi 5G services, which began in March 2025, has expanded to all 17 priority circles, contributing nearly 99% of the company's revenue. 5G services are now available in 29 cities, with further expansion planned based on demand and 5G handset penetration.

Simultaneously, Vodafone Idea has been strengthening its 4G network, increasing population coverage to over 84% from about 77% in March 2024, with plans to reach 90%. 4G data capacity has grown by over 38%, leading to a 17% improvement in 4G speeds.

Impact: This news indicates a positive trend for Vodafone Idea, showing progress in narrowing losses and improving key financial metrics. The aggressive network expansion in both 4G and 5G could help the company regain market share and improve subscriber loyalty. However, significant debt and ongoing investment requirements remain challenges. The company's ability to monetize these network investments will be crucial for future profitability. Rating: 7/10

Difficult Terms Explained: ARPU (Average Revenue Per User): The average revenue generated by a telecom operator from each subscriber over a specific period. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company's operating performance, excluding interest, taxes, and non-cash expenses like depreciation and amortization. Capex (Capital Expenditure): Funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, and equipment. Spectrum: A range of electromagnetic frequencies used for wireless communication, such as mobile phone services, licensed by governments to telecom operators.