Debt-laden Vodafone Idea Ltd (VIL) on Thursday reported a widening of its consolidated loss to Rs 6,608 crore for the first quarter ended June 30, 2025, mainly due to higher finance costs and government levies.
The company’s board approved the elevation of Chief Operating Officer Abhijit Kishore to the position of Chief Executive Officer, effective August 19, replacing Akshaya Moondra, whose three-year tenure ends on August 18, PTI reported.
VIL’s finance cost rose about 7 per cent year-on-year to Rs 5,892.8 crore from Rs 5,518.6 crore in the same quarter last year, adding to the Rs 6,426.7 crore loss posted in June 2024, according to a company filing. Licence fees and spectrum usage charges payable to the government increased by about 6 per cent to Rs 947 crore from Rs 892 crore a year ago.
Revenue from operations rose 5 per cent to Rs 11,022.5 crore during the quarter from Rs 10,508.3 crore a year ago, mainly due to a 15 per cent increase in average revenue per user (ARPU) to Rs 177 from Rs 154.
The company said, “During the reported quarter, improvement in the network with capex of Rs 2,440 crore enabled us to arrest decline of customers by 90 per cent to 5 lakh compared to decline of around 50 lakh we registered in September 2024 and December 2024 quarter.”
VIL’s total subscriber base stood at 19.77 crore at the end of June 2025, comprising 12.74 crore 4G and 5G users. The company has rolled out 5G services in 22 cities, including Mumbai, Delhi, Bengaluru, Mysuru, Surat and Ahmedabad, and plans to extend coverage to all cities across its 17 priority circles by September.
The firm added, “We added over 4,800 new unique 4G towers during the quarter, reinforcing our focus to deliver superior connectivity. As of June 2025, Vi’s total broadband site count stood at around 516,200.”
VIL said it is in discussions with banks to raise additional funds as required. With the government holding a 49 per cent stake, the company reported outstanding net debt of over Rs 2 lakh crore and continues to rely on the Department of Telecom (DoT) for support on adjusted gross revenue (AGR) matters.
Outstanding debt from banks, including interest accrued but not due, stood at Rs 1,944.5 crore, while deferred payment obligations for spectrum and AGR aggregated Rs 1,99,140.3 crore.
The filing said, “The group’s ability to settle the above liabilities is dependent on further support from the DoT on the AGR matter, fund raise through equity and debt and generation of cash flow from operations. Based on current efforts, the Group believes that it would be able to get DoT support, successfully arrange funds and generate cash flow from operations.”
The company further said, “The company will get Rs 6,393.9 crore in assets from the promoters if it is able to discharge part of AGR dues by December 2025.
On Thursday, Vodafone Idea shares closed 2.99% lower at Rs 6.17.
Stay informed with the latest business news, updates on bank holidays, public holidays, current gold rate and silver price.
The TOI Business Desk is a vigilant and dedicated team of journal...
Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
Read Less
Start a Conversation
Post comment