Even as Vodafone Idea (VIL) is deploying fresh capital to strengthen its network, the beleaguered telecom operator continues to lose revenue market share. VIL’s revenue market share declined to an all-time low, with market share loss in 16 out of the 22 circles.

“VIL’s Q1FY25 market share was 50 bps (basis points) lower versus FY24 and at 15.5 per cent is at an all-time low. VIL lost 50-170 bps share in the more urban-centric Metros and A-circles and a lower 10-20 bps market share in B and C circles. Despite this, VIL reported revenue growth for the third straight quarter. With tariff hikes already taken up, VIL is likely to continue witnessing growth, which may arrest the pace of market share gains for Bharti/Jio in the future,” brokerage firm Jefferies said in a research report.

VIL’s adjusted gross revenue (AGR) declined 2.2 per cent quarter on quarter and 1.8 per cent year on year to ₹9,200 crore during the first quarter of FY25.

Competitors’ growth

“VIL’s AGR declined across leadership and established circles by 2.2 per cent and 0.1 per cent quarter on quarter, respectively. VIL circle-wise market share appears weaker due to higher revenue recognised by Bharti, and even on adjusted basis, it is unimpressive,” said a note by ICICI Securities.

During Q1FY25, Jio reported the highest revenue growth at 10.5 per cent year on year, driven by active subscriber growth (+7 per cent). Bharti’s revenue growth, though slower than Jio’s, at 9 per cent was still higher than the sector and was led by higher average revenue per user - ARPU (up 5 per cent). “We believe Jio’s subscriber growth will remain strong with adoption of JioBharat and Bharti’s ARPU would benefit from focus on improving subscriber mix. Bharti Airtel and Jio’s annual growth of 9-10.5 per cent is robust in the absence of a headline tariff hike for the sector. VIL’s net revenues grew 2 per cent - the third straight quarter of growth - despite continued subscriber losses (7 per cent decline in average active subscribers),” Jefferies added.