Vodafone Idea’s Struggle for Survival: Faces Heavy Losses

Source Credit : Portfolio Prints

Significant Losses, Narrower Than Expected

In the quarter ending June 30, 2025, Vodafone Idea reported a post-tax consolidated loss of ₹6,608 crore (approximately $754.5 million), slightly better than analysts’ forecast of around ₹7,000 crore. This amount marks a marginal improvement compared to the ₹6,432 crore loss in the same period last year, though still reflecting a worsening year-on-year trend.

Modest Revenue Growth and ARPU Gains

Despite the loss, there was a modest 5% year-over-year rise in revenue, reaching about ₹11,023 crore. This uptick was supported by a 15% increase in Average Revenue Per User (ARPU), which climbed to ₹177—however, this figure remains far below competitors Airtel (₹250) and Jio (₹208.8).

Operational Improvements, But Still Falling Behind

Vi achieved a 90% reduction in subscriber losses compared to previous quarters, an encouraging sign marking the lowest decline since its 2018 merger. Its 4G/5G subscriber base increased slightly to 127.4 million, up from 126.7 million, while its overall subscriber base stood at 197.7 million.

New CEO Amid Critical Crossroads

On August 18, 2025, COO Abhijit Kishore was officially appointed to succeed CEO Akshaya Moondra, whose three-year term concluded. This leadership change arrives as Vi grapples with its most challenging phase yet.

Debt Burden and Regulatory Pressures

Vi remains weighed down by a staggering debt load—over $22 billion—including massive liabilities tied to Adjusted Gross Revenue (AGR) dues estimated around ₹83,400 crore, with annual obligations of ₹18,000 crore looming. The company has appealed to the Supreme Court for relief, warning that failure to secure it may threaten its very existence by fiscal year 2025–26.

Limited Government Relief in Sight

While speculation persisted that the government might forgive a one-time spectrum dues waiver worth ₹6 lakh crore, such relief appears unlikely for private telecoms like Vi, with benefits more likely reserved for public-sector entities.

Summary Table

Challenge	Recent Developments
Financial Losses	₹6,608 crore loss (Q1 FY26), a modest improvement but still substantial
Revenue & ARPU	5% growth in revenue; ARPU rose to ₹177, still lagging behind rivals
Subscriber Metrics	90% drop in subscriber churn; 4G/5G base slightly up to 127.4 million
Leadership Transition	Abhijit Kishore set to take over as CEO on August 18, 2025
Debt & AGR Dues	Over $22 billion in liabilities; ₹83,400 crore in AGR dues—survival at stake
Relief Uncertainty	Government relief unlikely; court petition ongoing

Outlook:

Vodafone Idea’s latest earnings offer a fragile ray of hope—improved ARPU, shrinking subscriber churn, and a fresh leadership team. Yet, its path remains steeply uphill, with colossal debt and regulatory liabilities continuing to cast a long shadow. Without timely debt restructuring or direct relief, Vi's very future remains uncertain.