Vodafone Idea reported quarterly revenue of Rs. 110.1 billion, reflecting a 3.8 percent year-on-year growth in January-March 2025.
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EBITDA for the quarter stood at Rs. 46.6 billion, while cash EBITDA grew 6.5 percent to Rs. 23.2 billion.
The third largest telecom operator in India has achieved consecutive annual growth in both revenue and EBITDA for the third year, with annual revenue increasing by 2.2 percent to Rs. 435.7 billion and cash EBITDA rising by 9.5 percent to Rs. 92 billion.
Capital expenditure for Q4FY25 reached a record Rs. 42.3 billion, bringing the full-year FY25 capex to Rs. 95.7 billion.
The company also reduced its bank debt from Rs. 40.4 billion in March 2024 to Rs. 23.3 billion in March 2025, while maintaining a cash and bank balance of Rs. 99.3 billion as of March 31, 2025.
Vodafone Idea has reported significant developments and strategic initiatives in Q4 FY25, reflecting a mix of operational improvements, retail expansion, and targeted business growth. Here’s a breakdown of the key points and their implications:
4G Subscriber Base and ARPU Growth
4G Subscriber Base: Stood at 126.4 million at the end of Q4FY25.
ARPU (Average Revenue Per User): Improved to Rs. 175, up 14.2 percent YoY from Rs. 153 in Q4FY24.
Despite subscriber challenges, Vi is managing to increase revenue per user — a positive sign for revenue sustainability, but subscriber growth remains crucial.
Retail Expansion and Customer Experience Focus
New Stores: Over 100 new flagship stores opened in the past six months.
Total Flagship Stores: Now over 500 across metros and Tier 1 cities.
Total Retail Footprint: 2,500+ stores across 600 cities and towns.
Customer Service Impact:
Serving over 50,000 customers daily at physical stores.
Vi App remains key for digital interactions.
Google Rating: 4.4/5, reflecting positive customer satisfaction.
Vi is betting on physical presence to strengthen brand trust and improve service quality, especially in premium markets. This hybrid (physical + digital) strategy could help retain high-value customers.
Focus on MSMEs and Regional Markets
MoU with West Bengal State Export Promotion Society:
Aimed at digitally transforming MSMEs.
Focus on Bengali-language training, localized tools, and on-ground sessions.
Part of the “ReadyForNext” initiative.
Strategic regional engagement strengthens Vi’s positioning as a partner in the digital growth of India’s MSME sector — critical for long-term relevance in enterprise services.
Vodafone Idea has significantly ramped up its 4G infrastructure, increasing 4G population coverage by approximately 6 percent over the past year — reaching 83 percent as of March 2025. This marks a critical step in closing the gap with competitors, especially in underserved regions. The 31 percent growth in 4G data capacity has driven a 28 percent improvement in speeds, an outcome that directly enhances user satisfaction and retention.
The aggressive rollout of over 6,900 4G towers in a single quarter — the highest since the Vi merger —reflects an intensified focus on improving network availability and quality. The strategic addition of ~18,400 sites on the 900 MHz band improves indoor connectivity, addressing a long-standing pain point for urban users, while ~14,500 new sites on higher frequency bands bolster capacity and data speeds. The total broadband site count, now at ~494,600, demonstrates the scale of Vi’s efforts.
Furthermore, the 5G rollout, currently live in Mumbai, Delhi, Chandigarh, and Patna, sets the stage for broader expansion across 17 circles by August 2025. However, given the current limited 5G footprint, the near-term impact on customer experience may be modest, with 4G remaining the primary focus for mass-market users.
Product Innovation
Vi’s service differentiation strategy also stands out. For postpaid users, the Vi Max Limitless Postpaid Plans offer unlimited high-speed data across nine markets — catering to heavy data users and premium customers seeking value and convenience.
On the prepaid front, the Super Hero and Non-Stop Hero plans target the mass market by offering unlimited data during key hours or 24/7, addressing price-sensitive yet data-hungry users. These innovative plans have shown strong traction, contributing to growth in ARPU and subscribers, especially in competitive markets.
Vodafone Idea’s strategy reflects a shift from mere survival to proactive customer experience enhancement. The company’s focus on network quality, capacity expansion, and service innovation indicates a recognition that customer satisfaction is key to arresting churn, improving ARPU, and ultimately regaining market share.
However, challenges remain. The Indian telecom industry, dominated by Jio and Airtel, requires Vi to sustain momentum, ensure consistency in service quality, and rapidly scale its offerings, particularly in the 5G domain.
Baburajan Kizhakedath
