Vodafone Idea Share Price in Focus: Gains Amid Strategic Partnerships

Vodafone Idea share price is currently trading at ₹8.97, up 0.45% today. Over the past 5 days, the stock has gained 14.12% and 14.85% in the past month. 

Vodafone Idea’s stock prices surged after the company announced a partnership with HCL Technologies’ software unit, HCL Software, to improve its 4G and 5G networks.

The telecom company will utilise HCL Augmented Network Automation (HCL ANA), a platform that helps manage its multi-vendor networks from Ericsson and Samsung. The HCL ANA platform uses Artificial Intelligence (AI) to simplify the management of Vodafone Idea’s complex network, which consists of different technologies and vendors, ensuring better integration and smoother network operations. Additionally, the platform is designed to be future-proof, as it is ready for SMO (ORAN) upgrades.

In addition to this partnership, Vodafone Idea also awarded network equipment contracts worth ₹30,000 crore to Nokia, Ericsson, and Samsung in September 2024. This deal will span 3 years and cover the supply of necessary equipment for its network.

Financial Highlights

Vodafone Idea reported a net loss of ₹7,175.9 crore for the September quarter (Q2FY25), driven by a shrinking user base. In comparison, the company reported a larger loss of ₹8,737 crore in the same quarter of FY24. However, the loss in Q2FY25 was 11.5% higher than the ₹6,432 crore loss in Q1FY25.

This is the second consecutive quarter where the company reduced its overall loss figures, mainly due to a significant reduction in tax expenses, which fell sharply to ₹7.8 crore in Q2, compared to ₹817.7 crore in Q2FY24. The company also benefited from a decrease in interest and financing costs, which dropped 3.38% to ₹6,313 crore from ₹6,534 crore in the previous year.

Vodafone Idea’s revenue from operations increased by just 2%, reaching ₹10,932 crore in Q2FY25, up from ₹10,716 crore in the same quarter last year.

The company’s average revenue per user (ARPU), a key measure of performance, rose to ₹156 in Q2, a 6.84% increase from the previous quarter’s ₹146. On a year-on-year basis, ARPU grew by 9.8%. This rise in ARPU was driven by tariff hikes introduced by major telcos like Reliance Jio, Bharti Airtel, and Vodafone Idea itself in July.

About Vodafone Idea

Vodafone Idea is a major telecom provider in India, offering mobile and long-distance communication services. It also deals in handsets and data cards. The company provides a range of services, including voice calls, broadband internet, and content services. It also offers solutions for businesses, entertainment options, SMS, utility services, and other value-added features.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.