Vodafone Idea: What Went Right and Wrong in Q2 FY25

Vodafone Idea Limited (VIL) recently came out with the results for Q2 FY25. This was a result investors were waiting eagerly for as it reflected the change in ARPU (average revenue per user) after tariff hikes, and the effect of the same on the subscriber base. It is safe to say, what we expected, turned out to be true. While there was a negative hit to the subscriber base, the telco did improve on other metrics like ARPU, revenues, and broadband coverage. It is worth noting that Vi secured funds from investors earlier in the year, and the funds are being used by the telco to scale the capex (capital expenditure) to improve network performance.

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Here’s everything you should know about Vi’s performance in Q2 FY25.

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The Good and the Bad for Vodafone Idea in Q2 FY25

Let’s go over the positives first. Vodafone Idea saw its revenues going up by 4% QoQ. This is a result of tariff hike. Then, the telco’s customer ARPU jumped by 7.8% QoQ to Rs 166 from Rs 154, a major improvement. Vi also scaled networks, resulting in increased 4G population coverage (from 1047 million to 1064 million QoQ). The telco also increased the total number of broadband sites in the country from 417,245 to 439,599 with the help of recently raised funds.

The bank debt reduced majorly from Rs 46.5 billion to Rs 32.5 billion QoQ. Vi added about 42,000 4G sites in a single quarter, the most added by the telco in a quarter in a single quarter. This has helped Vi in improving 4G speeds for the customers. The telco confirmed that it deployed 900 MHz band spectrum across 20,500 sites, and 1800 MHz and 2100 MHz bands across 21,200 sites during the quarter. The LTE 900 MHz band is now available in 16 out of 17 priority circles of the telco. This will help with boosting indoor coverage experience for the consumers.