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Vodafone Idea Key Financial Ratios

NSE:IDEA | TELECOMMUNICATION - SERVICES

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Profitability Margins

2-year trend showing gross, operating, and net profit margins

FY 2024 - FY 2025

Vodafone Idea's net profit margin of -61.4% in FY2025 indicates negative profitability — the company is operating at a net loss, with operating margin at -6.3% and gross margin at 60.2%.

Understanding Profitability Margins

In FY 2025, Vodafone Idea posted a gross margin of 60.2%, an operating margin of -6.3%, a net margin of -61.4%. Gross Margin = (Revenue - COGS) / Revenue; Operating Margin = EBIT / Revenue; Net Margin = Net Income / Revenue. Typical healthy ranges: Gross 20-40%, Operating 10-20%, Net 5-10%+. Consistent or improving margins indicate strong competitive positioning.

Company Performance

2-year trend showing revenue, gross profit, and net profit

FY 2024 - FY 2025

Vodafone Idea's revenue grew 4.3% to 445.92B in FY2025, and net losses narrowed 12.3% to -273.83B — the company remains unprofitable.

Understanding Company Performance

In FY 2025, Vodafone Idea's revenue grew by 4.3% year-over-year. Revenue is total income from operations. Gross Profit is revenue minus cost of goods. Net Profit is the bottom line after all expenses. Consistent growth across all three signals a healthy, expanding business.

Return on Equity (ROE)

2-year trend showing shareholder returns

FY 2024 - FY 2025

Vodafone Idea's ROE of 38.9% in FY2025 indicates excellent capital efficiency.

Understanding Return on Equity (ROE)

In FY 2025, Vodafone Idea reported an ROE of 38.9%. ROE = (Net Income / Shareholders' Equity) x 100. Measures how efficiently the company turns equity into profit. Above 15% is generally strong; above 25% is excellent. Very high ROE may signal high leverage — check alongside debt levels.

Net Income vs Free Cash Flow

2-year trend comparing profitability with cash generation

FY 2024 - FY 2025

Vodafone Idea reported both a net loss and negative free cash flow in FY2025, indicating severe financial stress.

Understanding Net Income vs Free Cash Flow

In FY 2025, Vodafone Idea's free cash flow exceeded net income. Free Cash Flow = Operating Cash Flow - Capital Expenditure. When FCF exceeds net income, it suggests high-quality, cash-backed earnings. Persistent gaps may indicate aggressive accounting or heavy capex needs.

Net Income vs Operating Cash Flow

2-year trend comparing profitability with cash from operations

FY 2024 - FY 2025

Vodafone Idea reported a net loss but generated positive operating cash flow in FY2025, suggesting core operations remain cash-positive despite accounting losses.

Understanding Net Income vs Operating Cash Flow

In FY 2025, Vodafone Idea's operating cash flow exceeded net income. Operating Cash Flow is the actual cash from core operations. OCF exceeding net income signals strong cash collection. OCF trailing net income may indicate aggressive revenue recognition or working capital issues.

Leverage Ratios

Measure a company's financial leverage, liquidity, and ability to meet financial obligations.

Current Ratio Analysis

2-year trend showing short-term liquidity position

FY 2024 - FY 2025

Vodafone Idea's current ratio of 0.56x in FY2025 indicates liquidity risk — current liabilities significantly exceed coverage capacity.

Understanding Current Ratio

In FY 2025, Vodafone Idea reported a current ratio of 0.56. Current Ratio = Current Assets / Current Liabilities. Measures short-term liquidity. A ratio of 1.5-3.0 is generally healthy; below 1.0 signals liquidity risk; above 3.0 may indicate underutilized assets.

Interest Coverage Ratio Analysis

2-year trend showing ability to service debt

FY 2024 - FY 2025

Vodafone Idea's interest coverage ratio of -0.1x in FY2025 indicates difficulty covering interest payments — high financial stress.

Understanding Interest Coverage Ratio

In FY 2025, Vodafone Idea reported an interest coverage ratio of -0.1x. Interest Coverage = EBIT / Interest Expense. Shows how many times operating profit covers interest payments. Above 5x is comfortable; below 1.5x signals potential difficulty servicing debt.

Debt-to-Equity Ratio Analysis

2-year trend showing financial leverage and capital structure

FY 2024 - FY 2025

Vodafone Idea has negative equity in FY2025, indicating accumulated losses exceed equity — a significant financial risk.

Understanding Debt-to-Equity Ratio

In FY 2025, Vodafone Idea reported a debt-to-equity ratio of -3.32. Debt-to-Equity = Total Debt / Total Equity. Below 1.0 is conservative; 1.0-2.0 is moderate; above 2.0 indicates higher financial risk. Capital-intensive industries naturally carry higher ratios.

Total Debt Analysis

2-year trend showing total debt with year-over-year changes

FY 2024 - FY 2025

Vodafone Idea's debt decreased 4.3% YoY in FY2025 — positive deleveraging improves financial flexibility.

Understanding Total Debt

In FY 2025, Vodafone Idea's total debt decreased by 4.3% year-over-year. Total Debt includes short-term debt, long-term loans, debentures, and capital leases. YoY changes (shown as percentages) reveal whether the company is leveraging up or deleveraging.

Shares Outstanding

Year-over-year change in diluted shares outstanding

Vodafone Idea's diluted shares increased 40.3% YoY in FY2025 — significant dilution that warrants concern.

Over 2 years (FY2024–FY2025), diluted shares increased 40.3% from 48.72B to 68.36B, indicating cumulative dilution.

Understanding Shares Outstanding

In FY 2025, Vodafone Idea's diluted shares increased by 40.3% year-over-year. Diluted Shares accounts for stock options, warrants, and convertibles. Positive YoY change means dilution (red); negative means buybacks (green). Consistent dilution above 5% annually is a red flag.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2025