Vodafone Idea Q4 results 2025: Should you buy Vi shares now?
Vodafone Idea (Vi) posted a Rs 7,166.1 crore loss in Q4, slightly less than last year. ARPU rose to Rs 175, but declining user base and funding gap are concerning.
Vodafone Idea stock
The telecom company's loss is slightly lower than last year. Vi reported a loss of Rs 7,166.1 crore in Q4 FY25, compared to Rs 7,674.6 crore in the same quarter of FY24. However, the loss is slightly higher compared to the previous quarter's Rs 6,609.3 crore in December 2024. Revenue stands at Rs 11,013.5 crore, up 3.8% YoY. ARPU (Average Revenue Per User) is Rs 175, a 14.2% increase from Rs 153 last year. However, net worth remains negative at Rs 70,320.2 crore. Overall, the company's losses have decreased, but the cash crunch and declining user base are concerning.
Vodafone Idea stock target
ARPU, the average revenue per customer, shows a good increase. The reason for reaching Rs 175 is the change in tariff plans and increased contribution from high-value users. This is a positive sign for the company, but until the user base increases, this increase will not be complete. Vodafone Idea's board has now approved raising funds of up to Rs 20,000 crore. The company can raise these funds in various ways, such as equity shares, debt securities, foreign securities (GDR/ADR), guarantees, or a combination of these.
Vodafone Idea 2025
The company says its future sustainable growth depends on the support it receives from the Indian government, banks, and investors. Financial advisory firm UBS has given a buy rating to Vodafone-Idea shares, with a target price of Rs 12.10, almost double the current price. However, UBS acknowledged that the Q4 results were weak and market share continues to decline. There is a slight improvement in ARPU, but less than expected. UBS believes the company's fundraising plan, 5G expansion, and capital expenditure will determine the future path.
VI stock future
JPMorgan, which gave a neutral rating, has set a target price of Rs 8 for the stock. JPMorgan said Vi's results were in line with expectations. Revenue and EBITDA were in line with expectations. Capital expenditure increased to Rs 4,230 crore in the quarter, higher than Q3 but slightly lower than expected. The financial advisory firm is focusing on Vi's fundraising plan and bank loan negotiations.
VI fourth quarter results
Financial advisory firm Macquarie has downgraded Vodafone-Idea stock to Underperform and set a target price of Rs 6.5. On Monday, June 2, the stock traded at Rs 6.94 in early trade. Macquarie says Vi's situation is still weak. Customers continue to decline, and the debt burden is increasing. The financial advisory firm believes that the government is already a major shareholder in the company, so the chances of government funding are also low. It is important to get the advice of your market expert before making any investment.
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