Vodafone Idea shares gain post Q4 results 2025. Should you buy or sell?

Vodafone Idea’s shares rose just above 1 per cent on Monday, June 2, even as the telco posted a sequential increase in absolute net loss to Rs 7,166 crore for the quarter ending March 2025 from Rs 6,609 crore in the previous quarter. The net loss year-on-year narrowed against a loss of Rs 7,674.6 crore for the previous year’s Q4 reported.

Revenue for the March quarter was Rs 11,013.5 crore, a decrease of 1 per cent compared to a revenue of Rs 11,117 crore in Q3FY25, and a increase of 3.8 per cent year-on-year. The operating performance remained steady year-on-year with EBITDA of Rs 4,660 crore, which was only marginally lower than Rs 4,712 crore in the previous quarter.

March Revenue Triggers

A highlight during the March quarter was the Average Revenue per User (ARPU) jumping to Rs 175, an increase from Rs 153 a year ago. This YoY increase of 14.2 per cent was attributed to tariff increases and a better mix of subcribers (according to the company’s filing).

The EBITDA margin remained resilient (even improving slightly) at 42.3 per cent, slightly beating Bloomberg’s estimate of 41.4 per cent.

Board approves Rs 20,000 crore fundraising plan; stock reacts well 

The telecom company approved a fundraising of up to Rs 20,000 crore by a mix of 

The board of the telecom company approved fundraising for up to Rs 20,000 crore by way of equity and convertible securities. The potential capital raise could be through a follow-on public offer (FPO), qualified institutional placement (QIP), foreign currency bonds or any other eligible instrument. The stock reached an intraday high of Rs 7, up from the previous close of Rs 6.92. The stock traded at Rs 6.97, up 0.72 per cent at 10:15 a.m., even though the Nifty 50 was down 0.75 per cent.

Full year FY25 losses narrow, revenue sees minor growth

The FY25 consolidated loss at Vodafone Idea was Rs 27,383.4 crore, narrowed from Rs 31,238.4 crore for FY24. Revenue for the year was Rs 43,571.3 crore, a 2.1 per cent year-on-year increase.

What should investors do now?

Technical analysts suggest that while the stock appears to be finding support above Rs 6.80, traders should remain cautious. A breakout above Rs 7.00 could see short-term upward momentum towards Rs 7.55, while a break below Rs 6.80 could signify the return of weakness.

The stock has underperformed the benchmark index and has lost over 56 per cent in the past year. Analysts are split on the stock with 12 of 21 having a ‘sell’ rating and 9 maintaining a ‘hold’ rating.