Shares of debt-ridden telecom service provider Vodafone Idea Ltd. will be reacting to their quarterly results on Monday, June 2. The results were reported after market hours on Monday.
The company's net loss on a sequential basis widened to ₹7,166 crore from a loss of ₹6,609 crore that it had reported during the December quarter.
Revenue for the quarter also fell 0.9% from the previous period. In comparison, Bharti Airtel's India mobile revenue went up by 1.3%, while Reliance Jio's topline grew by 2.4% during the same period.
Vodafone Idea lost 1.6 million subscribers during the March quarter, taking the full year loss to 14.4 million subscribers. Its Average Revenue Per User (ARPU) saw a marginal uptick to ₹164 from ₹163 earlier, but the figure was lower than its peers like Jio (₹206) and Bharti Airtel (₹245).
Despite raising over ₹61,400 crore in financial year 2025 through an FPO, promoter fund infusion, preferential issue of shares, and converting spectrum dues worth nearly ₹37,000 crore into equity, Vodafone Idea still has significant outstanding liabilities.
As of date, its current debt stands at ₹1.94 lakh crore including deferred spectrum and AGR dues. Excluding interest, bank debt worth ₹1,600 crore is also due, while AGR dues worth ₹16,428 crore are due this financial year.
The company had recently warned that it may not be able to continue beyond the current financial year if more support from the government is not forthcoming. The government, after the recent conversion of dues into equity, has a 49% stake in Vodafone Idea.
The telecom service provider also has close to 60 lakh small shareholders, or those with an authorised share capital of up to ₹2 lakh.
Brokerage firm Macquarie has an "underperform" rating on Vodafone Idea with a price target of ₹6.5, which is almost the same price at which the stock closed on Friday.
The erosion of Vodafone Idea's subscriber base highlights that there is no quick fix to the company's underlying fundamental challenges.
With the Government becoming the largest shareholder, there will be challenges to further equity infusion by the government, Macquarie said.
CLSA maintained its "outperform" rating but cut its price target to ₹8 from ₹10 earlier. It said that the company's debt raise is pending and the board has approved ₹20,000 crore of fund raising.
Post the government converting the spectrum dues to equity on the AGR dues, despite an adverse court verdict, Vodafone Idea said it will continue to engage with the government to seek relief.
Shares of Vodafone Idea had ended near the day's low on Friday ahead of the results announcement, declining 3.2% to ₹6.91. The stock is down nearly 40% from its FPO price of ₹11 and more than 65% from its 2024-peak of ₹19.18.
The company's net loss on a sequential basis widened to ₹7,166 crore from a loss of ₹6,609 crore that it had reported during the December quarter.
Revenue for the quarter also fell 0.9% from the previous period. In comparison, Bharti Airtel's India mobile revenue went up by 1.3%, while Reliance Jio's topline grew by 2.4% during the same period.
Vodafone Idea lost 1.6 million subscribers during the March quarter, taking the full year loss to 14.4 million subscribers. Its Average Revenue Per User (ARPU) saw a marginal uptick to ₹164 from ₹163 earlier, but the figure was lower than its peers like Jio (₹206) and Bharti Airtel (₹245).
Despite raising over ₹61,400 crore in financial year 2025 through an FPO, promoter fund infusion, preferential issue of shares, and converting spectrum dues worth nearly ₹37,000 crore into equity, Vodafone Idea still has significant outstanding liabilities.
As of date, its current debt stands at ₹1.94 lakh crore including deferred spectrum and AGR dues. Excluding interest, bank debt worth ₹1,600 crore is also due, while AGR dues worth ₹16,428 crore are due this financial year.
The company had recently warned that it may not be able to continue beyond the current financial year if more support from the government is not forthcoming. The government, after the recent conversion of dues into equity, has a 49% stake in Vodafone Idea.
The telecom service provider also has close to 60 lakh small shareholders, or those with an authorised share capital of up to ₹2 lakh.
Brokerage firm Macquarie has an "underperform" rating on Vodafone Idea with a price target of ₹6.5, which is almost the same price at which the stock closed on Friday.
The erosion of Vodafone Idea's subscriber base highlights that there is no quick fix to the company's underlying fundamental challenges.
With the Government becoming the largest shareholder, there will be challenges to further equity infusion by the government, Macquarie said.
CLSA maintained its "outperform" rating but cut its price target to ₹8 from ₹10 earlier. It said that the company's debt raise is pending and the board has approved ₹20,000 crore of fund raising.
Post the government converting the spectrum dues to equity on the AGR dues, despite an adverse court verdict, Vodafone Idea said it will continue to engage with the government to seek relief.
Shares of Vodafone Idea had ended near the day's low on Friday ahead of the results announcement, declining 3.2% to ₹6.91. The stock is down nearly 40% from its FPO price of ₹11 and more than 65% from its 2024-peak of ₹19.18.
First Published: Jun 2, 2025 5:11 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!