At a Glance
Vodafone Idea Ltd, once a telecom behemoth, is now a ₹74,000 Cr zombie enterprise walking the tightrope between life and liquidation. With ₹27,000 Cr losses, ₹1.4 lakh Cr in negative net worth, and the Government now owning 49%, the big question isn’t “when will it turn around?” — it’s “should it even exist?”
1️⃣ India’s Telecom Tragedy: From Merger Dreams to Dues Nightmares
- Formed in 2018 after the merger of Vodafone India and Idea Cellular
- Mission: fight Jio. Outcome: got body slammed by Jio, then Bharti.
- AGR Dues of ₹1.7 lakh Cr over its head — so much for “Spectrum is the new oil”
- Now needs satellite tie-ups (AST SpaceMobile) to stay relevant. Ground network toh khatam hai.
2️⃣ Profit & Loss? Just Loss
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | OPM % | Interest (₹ Cr) |
|---|---|---|---|---|---|
| FY21 | 41,952 | -44,233 | -15.39 | 40% | 17,998 |
| FY22 | 38,516 | -28,245 | -8.79 | 41% | 20,981 |
| FY23 | 42,177 | -29,301 | -6.02 | 40% | 23,354 |
| FY24 | 42,652 | -31,238 | -6.23 | 40% | 25,766 |
| FY25 | 43,571 | -27,383 | -3.84 | 42% | 24,543 |
📞 Despite 42% operating margin, interest + depreciation eat all the profits and then some.
💀 5-Year Losses = ₹1.6 LAKH CRORES
That’s more than LIC’s total equity portfolio in many midcaps.
3️⃣ Balance Sheet: Negative Equity Club 💀
| Year | Equity Capital (₹ Cr) | Reserves (₹ Cr) | Borrowings (₹ Cr) | Net Worth |
|---|---|---|---|---|
| FY20 | 28,735 | -22,756 | 1,14,996 | Negative |
| FY23 | 48,680 | -1,23,039 | 2,37,766 | More Negative |
| FY25 | 71,393 | -1,41,713 | 2,33,229 | Very, Very Negative |
🪦 Net worth is so negative, Screener just says “LOL” when you search P/B ratio.
4️⃣ Government to the Rescue (Maybe)
📦 GOI now owns 49% of Vodafone Idea. Not because it wanted to. Because promoters converted dues into equity and said “Lo sambhalo.”
📉 Promoters’ stake fell from 74.99% to just 25.57% as of April 2025.
🫣 Retail public ownership down to 15.44% — smart retail seems to be walking away (finally).
5️⃣ Stock Price = Hope Injection
| Metric | Value |
|---|---|
| CMP | ₹6.86 |
| 52W High/Low | ₹19.20 / ₹6.29 |
| Market Cap | ₹74,323 Cr |
| Book Value | -₹9.85 😬 |
| ROCE | -1.87% |
| Dividend | LOL |
| Price CAGR (5Y) | -7% |
| 1Y Return | -60% |
📉 Every spike = one right issue or “relief rumour”
💉 Most recent rumour: “Govt may waive ₹84,000 Cr AGR dues” → Company denied it
6️⃣ The SatCom Bet: Too Little, Too Late?
📡 Vodafone Idea now says it’s teaming up with AST SpaceMobile for satellite internet.
😂 You can’t even manage tower signals properly, now you’ll beam from the stars?
🛰️ Satellite broadband is at least 3–5 years from monetization. This is just an investor distraction tactic.
7️⃣ Fair Value? Bro… Just Survive.
Let’s not pretend to calculate DCF here. Let’s do the brutal version:
- Enterprise Value = ₹74,000 Cr
- EBITDA (FY25) = ₹18,127 Cr
- EV/EBITDA = ~4x
- Peer Bharti Airtel trades at ~10–12x
👉 If — and it’s a big IF — Vi reduces debt, improves margins, and converts interest to equity, it could justify a ₹1.00–₹3.00 FV range. But…
🚨 At ₹6.86, you’re buying on pure hope. Not fundamentals.
TL;DR 📵
- ₹1.6 lakh Cr in losses over 5 years
- Negative net worth of ₹1.4 lakh Cr
- Government is now the majority shareholder (not by choice)
- Every 6 months: new right issue or new rumour
- Stock down 60% YoY
- Still has ~₹18,000 Cr EBITDA — but zero visibility on profitability
💬 Final Thought
Vodafone Idea is like that toxic ex — full of promises, constantly in debt, and somehow still showing up in your portfolio. The only thing unlimited here is the bleeding.
✍️ Written by Prashant | 📅 June 24, 2025
Tags: Vodafone Idea, Vi stock, AGR dues, telecom losses, government equity, telecom bailout, right issue, satellite broadband, Vi vs Jio vs Airtel, telecom turnaround, negative net worth
