Vodafone Idea shares fall ahead of Q3 results; ARPU expected to rise 5% QoQ

Shares of Vodafone Idea in Tuesday's trade (February 11) in a weak market traded lower ahead of its December quarter earnings later today. At around 12:55 pm, Vodafone Idea shares traded lower by 2.52 per cent or Rs 0.23 at Rs 8.89 per share after opening at Rs 9.1 on the BSE.

For the third quarter of the fiscal year 2024-25, Zee Business research expects consolidated net loss at the company to narrow marginally to Rs 7,150 crrore from Rs 7,176 crore in the preceding September quarter. The topline, however, at the telco is expected to surge 2 per cent quarter-on-quarter (QoQ) to Rs 11,150 crore, while it was Rs 10,932 crore in Q2FY25.

Analysts, furthermore, anticipate approximately 3.5 per cent quarter-over-quarter growth in wireless revenue due to the tariff increase.

On the operational front, the company is expected to post Rs 4,600 crore in EBITDA or earnings before interest, taxes, depreciation and amortisation, while it was Rs 4,550 crore in the previous September quarter, marking a 1.1 per cent rise sequentially. Margin, however, is expected to decline by 30 basis points to 41.3 per cent from the earlier 41.6 per cent in Q2FY25.

Also, analysts are of the view that during the review quarter, subscriber base at the company will further take a hit by 40 lakhs. 

The average revenue per user or ARPU, nonetheless, is expected to rise 5.1 per cent to Rs 164 in the December quarter from Rs 156 in the prior September quarter.

Additionally, the firm's capex is expected to double to Rs 2,800 crore from Rs 1,400 crore in Q2 of the ongoing fiscal year.