Vodafone Idea Q2 Results Preview: Losses likely to widen; ARPU may increase on tariff hike

Vodafone Idea- the beleaguered telecom major is slated to report its September earnings on Wednesday (November 13). Zee Business research expects the telco to report mixed numbers with revenue edging higher on increase in tariffs, nonetheless the losses are seen expanding.

For the review quarter, consolidated losses are expected to increase by 6.5 per cent quarter-on-quarter (QoQ to Rs 6,850 crore as against Rs 6,432 crore. The revenue from operations at the company is also expected to rise 5.6 per cent sequentially to Rs 11,100 crore as against Rs 10,508 crore in the June quarter.

The modest rise in revenue is expected as the company took to hiking tariffs at the very start of the quarter in July. This infact was the first major hike in tariffs announced by telcos since 2021.

On the operational front, the EBITDA at the company is set to climb 8.2 per cent sequentially from Rs 4,205 crore in the previous quarter to Rs 4,550 crore. On a rising EBITDA, margin is also expected to expand by 100 bps or 1 per cent to 41 per cent in Q2FY25 in comparison to 40 per cent in Q1FY25.

The average revenue per user (APRU)- which the telecom company realises per user on a monthly basis is seen to gain a healthy 8.2 per cent to Rs 158 during the September quarter from Rs 146 per share.

Subscriber base

Analysts expect the company's subscribe base during the September quarter to go down by another 40 lakh. In the previous earnings, the company highlighted that it is its twelfth successive quarter of 4G subscriber additions which increased to 12.67 crore versus 12.29 crore in the previous year's same quarter.

What to expect in H2?

Zee Business research expects 45/5g network rollout in the second half of the current fiscal year.