Vodafone Idea Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Sep 9
- 2 min read
by KarNivesh | 09 September, 2025
Vodafone Idea Limited (Vi), India’s third-largest telecom operator, is at a turning point. With over 197 million subscribers, the company faces a mix of daunting challenges and new opportunities for revival. The biggest hurdle is its massive debt of about ₹2.33 lakh crores, but government support and operational improvements have kept hope alive.
Government Support: A Lifeline
The Government of India has played a crucial role in Vi’s survival. In March 2025, it converted ₹36,950 crores of spectrum dues into equity, increasing its ownership stake to 48.99%. This follows an earlier conversion of ₹16,130 crores in 2023. Now, the government is the largest shareholder, ensuring Vi remains in the game against Airtel and Jio.
Business Updates and Expansion
Vi recently appointed Abhijit Kishore as CEO in August 2025. The company also entered the financial services space with Vi Finance, offering loans, deposits, and credit cards. On the technology front, Vi has rolled out 5G services in 22 cities, with plans to expand across all its 17 priority circles by September 2025.
Financial Performance
For FY25, Vi reported revenues of ₹43,571 crores, a modest 2.35% growth over FY24. Net losses still remain heavy at ₹27,383 crores, but that is an improvement from the ₹31,238 crore loss a year earlier. Cost optimization and lower finance costs are helping reduce the bleeding.
EBITDA margins stand at 41.3%, proving that the company can generate positive operational cash flow despite overall losses. ARPU (Average Revenue Per User) has shown consistent growth, reaching ₹177 in Q1 FY26 compared to ₹115 in FY23.
Debt Pressure
Debt remains Vi’s biggest challenge. Spectrum dues of ₹1,56,299 crores and AGR dues of ₹75,000 crores make up most of its liabilities. Bank debt has been reduced to just ₹1,930 crores by June 2025, but upcoming AGR payments of ₹18,000 crores annually from March 2026 will test its financial health.
Market Position
Despite its struggles, Vi still holds a 17.6% market share. However, rivals Airtel and Jio are far ahead. Airtel earned revenues of about ₹1,40,000 crores in FY25, while Jio crossed ₹1,60,000 crores. Vi’s ARPU of ₹177 is also below Airtel’s ₹208 and Jio’s ₹195.
Stock Market Performance
Vi’s stock has been highly volatile over the past five years. From highs of ₹17.80 in 2020 to lows near ₹6 in 2025, the share price has reflected investor uncertainty. As of now, the stock trades around ₹7.29, with resistance near ₹8.50.
The Road Ahead
Vodafone Idea has laid out a strategy focusing on 4G/5G expansion, premium plan migration, enterprise solutions, and partnerships. It also plans capex of ₹50,000–₹55,000 crores over the next three years. While customer churn has reduced and ARPU continues to improve, execution will be the key.
Conclusion
Vodafone Idea is a high-risk, high-reward story. Government backing, ARPU growth, and digital initiatives provide optimism. But massive debt, intense competition, and regulatory challenges mean survival depends on flawless execution. For investors, Vi remains a speculative bet—best suited for those willing to embrace risk in the hope of long-term turnaround.
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