As capital investment remains indefinitely suspended, Vodafone Idea is expected to report muted financial performance in the December 31 quarter of the 2024 fiscal year.

Analysts at JM Financial expect Vodafone Idea’s subscriber loss trend to continue, with the net subscriber base declining by ~2.5 million in Q3 FY24. The telco has been witnessing a decline of two to six million subscribers per quarter in the last few quarters due to the migration of subscribers to other telcos.

They further added that “...we expect ARPU to rise 2.5 per cent QoQ to ₹146 in 3Q FY24 compared to ₹142 in 2Q FY24, aided by improving subscriber mix. Hence, we expect revenue to grow 1.4 per cent QoQ to ₹10,900 crore; EBITDA is also likely to grow 2.4 per cent QoQ to ₹4,400 crore.”

Meanwhile, Dhruv Mudaraddi, Research Analyst at StoxBox said, “We believe that the Vodafone Idea (VI) is expected to come out with a stable set of numbers in Q3FY24 supported by increasing rural penetration, growth in broadband subscribers, and roll-out of 5G services which will lead to improvement in Average Revenue per User (ARPU). Though the telecom company’s subscriber is expected to see healthy growth which will contribute to VI’s topline growth, we expect the margins to contract marginally due to 5G-related costs.”

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