India's Vodafone Idea reported a smaller-than-expected third-quarter loss on Tuesday, as the telecom operator's per-user revenue continued to be boosted from July's tariff hikes. Vodafone Idea — 22.6% owned by the Indian government — was formed by a merger between the Indian arm of the UK's Vodafone Group and Aditya Birla Group's Idea Cellular in 2018.

Vodafone Idea's shares dropped 8.2% despite a narrower net loss of Rs 6,609 crore for Q3FY25, compared to the previous year. Revenue grew 4% year-on-year to Rs 11,117 crore. The company's ARPU and subscriber base increased,

Vodafone Idea's stock dropped 6.5% to ₹8.21 despite a reduced Q3 net loss of ₹6,609 crore. ARPU rose to ₹173, yet the user base shrank. The company is in talks for debt financing to support a significant network expansion.

MOFSL said VIL's reported losses stood at Rs 6,609 crore against its estimate of Rs 7,100 crore, largely driven by lower net finance costs and certain one-offs pertaining to vendor dues.

Vodafone Idea's net loss narrowed to Rs 6,609 crore in Q3, driven by tariff hikes that boosted ARPU. However, the telco continues to face challenges with subscriber losses, now below 200 million. Investments and phased 5G rollout plans are set to accelerate in the coming quarters.

Telecom firm Vodafone Idea Ltd on February 11 reported its net loss narrowed marginally to Rs 6,609 crore in the quarter ended December 31, 2024. On February 11, Vodafone Idea's shares on BSE closed 3% lower at Rs 8.82 apiece.