Vodafone Idea Limited (VIL), the third-largest telecom operator in India, has finally walked the talk. The telco has done what it said it will do when raising funds via equity. Vi said that the capital expenditure (capex) will happen mostly through the raised funds and the overall revenues will go towards clearing off debt. The fundraising will help the company in expanding network presence and bolstering experience for the consumers. Vi's FY24 capex was Rs 18.5 billion only. Compared to this, the company incurred a capex of Rs 95.7 billion in FY25. In fact, an interesting thing, Vi spent Rs 42.3 billion in a single quarter for capex (this is Q4 FY25). This is more than what the company spent in an entire year.
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Not only did the company spend more on networks, it also showcased results for it. Vi's 4G coverage grew from 77.2% to 82.7% YoY. Along with this, the company launched 5G in four different cities with more to follow in the coming months. The debt from banks reduced from Rs 40.4 billion in March 2024 to Rs 23.3 billion in March 2025.
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This capex tells a story that Vi is serious about improving its mobile networks. The company has been improving its top line revenues and average revenue per user (ARPU) slowly. Its net loss also narrowed signficantly from the last year. What Vi needs to do now is add new subscribers. With new 4G subscribers, the telco will be able to improve its revenues further. That would have a lasting impact on the future of the company. However, there's still on threat looming over Vi's head. It is the payments for AGR (adjusted gross revenue) dues.
Vodafone Idea's Q1 FY26 results will be important to see whether things improved further or fell flat.
