MUMBAI: The fourth quarter of FY25 brought a much-needed signal boost for Vodafone Idea (Vi), as the beleaguered telco dialled up its strongest financial performance in years powered by equity infusions, spectrum-to-stock swaps, and an aggressive push into 5G and rural expansion.

For the fiscal year ended 31 March 2025, Vi reported revenue of Rs 435.7 billion, marking a 2.2 per cent year-on-year increase. More notably, its annual cash EBITDA (pre-Ind AS 116) rose 9.5 per cent to Rs 92 billion, a third straight year of growth. The company’s Q4FY25 revenue hit Rs 110.1 billion, its highest average daily revenue in five years.

But it’s not just numbers that changed. In a game-changing spectrum-to-equity conversion, Vi allotted 36.95 billion shares worth Rs 369.5 billion to the Government of India, boosting GoI's stake to 49 per cent. With an additional Rs 180 billion from a public offer, and Rs 40 billion via preferential issues to Vodafone and Aditya Birla Group, Vi raised a total of Rs 614 billion in equity this year. That’s more than a capital top-up, it’s a lifeline.

The subscriber base stood at 198.2 million at the end of Q4, with average revenue per user (ARPU) rising to Rs 175 up 14.2 per cent YoY. Vi also added over 6,900 new 4G towers this quarter (a company record since the merger), expanded 4G coverage to 83 per cent of India’s population, and improved 4G speeds by 28 per cent.

Capex for FY25 totalled Rs 95.7 billion, with Q4 alone accounting for Rs 42.3 billion, Vi’s highest in a quarter post-merger. The company also brought down its bank debt from Rs 40.4 billion to Rs 23.3 billion and closed FY25 with a cash and bank balance of Rs 99.3 billion.

However, challenges remain. Vi reported a consolidated loss of Rs 273.8 billion for the year and still holds spectrum and AGR liabilities aggregating over Ts 1.9 trillion. It has another Rs 164.3 billion in AGR dues falling due in FY26, and is in talks with banks for additional debt funding.

To offset these burdens, Vi is diversifying its offerings. It launched new "Limitless" postpaid plans and hero prepaid plans to woo consumers, expanded its retail footprint to over 500 flagship stores and 2,500 touchpoints, and introduced premium international roaming benefits and lost baggage insurance.

Even its B2B wing is flexing muscle, signing an MoU with West Bengal for MSME digital skilling and partnering with HPE to deliver enterprise-grade network solutions.

Vi’s signal to the market is clear: it’s not just staying alive, it’s aiming for a comeback. With spectrum dues now equity, ARPU trending upwards, and credit ratings upgraded to BBB- (Stable) by ICRA and CARE, FY25 could be the year Vi finally got its second wind.

Now, all eyes are on August 2025, when the company plans to beam 5G across all 17 of its spectrum circles. Until then, the mantra is clear: invest, expand, and connect.