Summary
Bharat Sanchar Nigam Limited (BSNL), India’s state-owned telecommunications company, reported a net profit of ₹280 crore in the fourth quarter of the fiscal year 2024–25, marking its second consecutive profitable quarter after 18 years of sustained losses. This milestone reflects a significant financial turnaround driven by aggressive network expansion, cost optimization, and enhanced service offerings, including nationwide 4G rollout and innovative solutions like National WiFi Roaming and private 5G connectivity for mining operations. The profit surge underscores BSNL’s successful implementation of government-backed revival initiatives aimed at modernizing its infrastructure and stabilizing its financial position.
Over the past two decades, BSNL struggled with declining market share and operational losses amid fierce competition from private telecom operators such as Reliance Jio and Bharti Airtel. The Indian government intervened through multiple revival packages beginning in 2019, committing over ₹2.8 lakh crore in equity infusion, viability gap funding, and debt restructuring to support spectrum allocation, capital expenditure, and rural connectivity. These measures, combined with professional management and process automation, have enabled BSNL to double its EBITDA from ₹2,164 crore in FY24 to ₹5,396 crore in FY25 and reduce overall losses by 58%.
BSNL’s resurgence is particularly notable for its strategic focus on expanding 4G and fiber-optic networks, enhancing connectivity in both urban and rural areas where private operators have limited presence. Approximately 36% of BSNL’s optical fiber customers reside in rural regions, highlighting its critical role in advancing India’s rural broadband agenda and digital inclusion efforts. However, challenges remain, including the decline of its traditional landline business and intense competition from private players aggressively pursuing 5G technologies.
The turnaround has been widely recognized as a pivotal moment for BSNL and the Indian telecommunications sector, with Communications Minister Jyotiraditya Scindia calling it a “significant turning point.” While short-term profitability may be moderated by ongoing capital investments and spectrum costs, BSNL’s long-term outlook remains positive, supported by continued government backing, innovation, and a planned nationwide 5G rollout leveraging indigenous technology.
Background
Bharat Sanchar Nigam Limited (BSNL), a state-owned telecommunications company in India, has faced significant challenges over the past two decades. The company struggled with declining subscriber numbers and persistent operational losses due to fierce competition from private telecom service providers. Despite having a strong presence, particularly in rural and remote areas of India where private players like Jio and Airtel were beginning to expand, BSNL found it difficult to maintain its market share and financial stability.
Recognizing the critical state of BSNL, the Indian government intervened with multiple revival packages. The first substantial relief package, approved in 2019, was valued at Rs 69,000 crore and aimed at restructuring and financial stabilization, including measures such as a Voluntary Retirement Scheme (VRS) to reduce employee costs, debt restructuring through sovereign guarantee bonds, administrative allotment of spectrum for 4G services, and in-principle approval for the merger of BSNL with MTNL. Subsequently, in 2022, an additional Rs 1.64 lakh crore was sanctioned to support capital expenditure, viability gap funding, and further debt restructuring. Moreover, in June 2023, an infusion of Rs 89,047.82 crore was made for the allocation of 4G/5G spectrum through equity infusion, enabling BSNL to accelerate its network modernization efforts.
Financially, BSNL’s performance showed signs of improvement following these interventions. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) nearly doubled from ₹2,164 crore in FY24 to ₹5,396 crore in FY25, with 27 telecom circles turning EBITDA-positive in FY25 compared to 17 in FY24. Despite a reduced overall loss of ₹2,247 crore in FY25 from ₹5,370 crore in the previous fiscal year, BSNL also recorded its highest-ever capital expenditure, improved EBITDA margins, and increased operating revenue and total income. This turnaround was underscored by BSNL posting back-to-back quarterly net profits for the first time in 18 years, a milestone acknowledged by the Union Telecom Minister and attributed by BSNL’s leadership to professional management, government support, and focused operational strategies.
Recent Financial Performance
Bharat Sanchar Nigam Limited (BSNL) has demonstrated a significant financial turnaround in recent quarters, marking its first profitability in over 17 years. In the third quarter of the fiscal year 2024-25, BSNL reported a net profit of Rs 262 crore, its first quarterly gain since 2007. This achievement was supported by strategic initiatives such as aggressive network expansion, cost reduction measures, and enhanced customer offerings, including National WiFi Roaming, BiTV, IFTV for FTTH customers, and India’s first private 5G connectivity for mining.
Despite a profit in Q3, the company faced a loss of ₹849 crore in Q4 FY24, but the overall loss for FY25 was reduced dramatically by 58%, from ₹5,370 crore in FY24 to ₹2,247 crore. BSNL’s earnings before interest, taxes, depreciation, and amortization (EBITDA) doubled over four years, reaching Rs 2,100 crore in FY24, reflecting improved operational efficiency.
Operating revenue also saw healthy growth, rising 7.8% year-on-year to Rs 20,841 crore in FY25, up from Rs 19,330 crore the previous year. The company’s leadership attributed the improved performance to professional management, government support, a relentless focus on both top-line growth and cost control, as well as innovation and service excellence. Furthermore, the Ministry of Communications highlighted that although profitability might moderate temporarily due to increased capital expenditure and spectrum investments, BSNL’s long-term prospects remain robust, driven by nationwide 4G/5G rollouts using indigenous equipment, network-as-a-service initiatives, backhaul fibre upgrades, and an ongoing asset monetisation programme that has nearly doubled proceeds to fund infrastructure expansion.
Factors Contributing to Q4 Profit
BSNL’s return to profitability in Q4, marked by a Rs 280 crore profit, was driven by a combination of strategic initiatives, government support, and operational improvements. A key factor was the company’s aggressive network expansion, particularly the accelerated rollout of its 4G network and upgrades to its fibre-optic infrastructure. This expansion boosted connectivity in both urban and rural areas, meeting the growing demand for high-speed internet services and enhancing customer experience across mobility, Fiber-to-the-Home (FTTH), and leased line segments, which saw revenue growth of 15%, 18%, and 14% respectively compared to the previous year.
Cost optimization played a critical role in improving financial performance. BSNL successfully reduced its overall expenditure by 3%, falling to ₹25,841 crore in FY25 from ₹26,673 crore in FY24, while finance costs dropped significantly by 14% to ₹1,527 crore. These savings contributed to a decline in losses by over ₹1,800 crore compared to the previous year. The implementation of process automation and strategic resource management further enhanced operational efficiency, enabling the company to maintain cost discipline without compromising service quality.
Government backing was another major contributor to the turnaround. The administration allocated spectrum in the 900 MHz and 1800 MHz bands at a cost of Rs 44,993 crore through equity infusion, alongside capital expenditure funding of Rs 22,471 crore for indigenous 4G technology deployment. Additionally, Rs 13,789 crore was provided as viability gap funding to support rural wireline operations. This financial support underpinned BSNL’s infrastructure expansion and modernization efforts, including the deployment of indigenous 4G and future 5G technologies, positioning the company for sustainable growth.
Furthermore, the company’s asset monetisation programme nearly doubled proceeds in FY25 to ₹1,120 crore, generating additional funds to fuel ongoing investments in network enhancement. The combination of these factors—network expansion, cost control, government funding, and asset monetisation—helped BSNL achieve back-to-back profitable quarters for the first time in 18 years, significantly narrowing cumulative losses and setting the stage for continued growth.
Financial Trends and Comparisons
BSNL has demonstrated a significant financial turnaround over recent years, highlighted by a marked improvement in profitability and operational efficiency. The company reported an EBITDA of ₹2,164 crore in FY 2023-24, which more than doubled from previous years, and further surged to ₹5,396 crore in FY 2024-25, indicating robust growth in earnings before interest, taxes, depreciation, and amortization.
In FY 2024-25, BSNL’s operating revenue increased by 7.8% year-on-year to ₹20,841 crore, with total income rising 10% to ₹23,427 crore from ₹21,302 crore the previous year. This growth was supported by key segments such as mobility revenue, which grew 6% to ₹7,499 crore, fibre-to-the-home (FTTH) revenue which saw a 10% increase to ₹2,923 crore, and leased lines including enterprise services that grew 3.5% to ₹4,096 crore.
Despite these positive trends, BSNL recorded an overall loss of ₹2,247 crore in FY 2024-25, though this represented a dramatic 58% reduction from the ₹5,370 crore loss in FY 2023-24. Notably, the third quarter of FY 2024-25 marked a significant milestone with the company posting a profit after tax of ₹262 crore, its first quarterly profit since 2007.
The improved financial performance is attributed to strategic initiatives including aggressive network expansion, innovation in customer services, and cost optimization measures. BSNL also succeeded in reducing its finance costs and overall expenditure, which contributed to a reduction in losses by over ₹1,800 crore compared to the previous year. Furthermore, 27 of the company’s telecom circles became EBITDA-positive in FY 2024-25, up from only 17 circles the year before, underscoring the breadth of the turnaround across its operations.
These financial achievements reflect BSNL’s ongoing efforts to enhance customer offerings, expand 4G and private 5G connectivity, and leverage asset monetization, all underpinned by professional management and government support.
Government Policies and Support
The Indian government has played a pivotal role in the revival and modernization of Bharat Sanchar Nigam Ltd (BSNL) through substantial financial and policy support. In 2019, the Centre approved a comprehensive revival plan aimed at reducing operational costs via a Voluntary Retirement Scheme (VRS), restructuring debt through sovereign guarantee bonds, and administratively allocating spectrum for 4G services backed by capital infusion. Additionally, the plan included the monetization of core and non-core assets and the in-principle approval for merging BSNL with Mahanagar Telephone Nigam Limited (MTNL) to strengthen the combined entity’s financial position.
The government has committed significant funding to enhance BSNL’s technological infrastructure and expand its rural broadband footprint. An equity infusion amounting to Rs 44,993 crore has been sanctioned to allocate spectrum in the 900 MHz and 1800 MHz bands to BSNL. Further capital expenditure of Rs 22,471 crore is earmarked for deploying an indigenous 4G technology stack, while Rs 13,789 crore is allocated as viability gap funding to support rural wireline operations, which have historically been commercially unviable between FY15 and FY20. These measures align with the government’s broader rural broadband agenda, as approximately 36% of BSNL’s optical fibre customers reside in rural areas, facilitating connectivity in remote regions with low-income consumers.
Following the initial revival package of Rs 69,000 crore in 2019, the government escalated its financial support by approving an additional Rs 1.64 lakh crore in 2022. This infusion targets capital expenditure, viability gap funding, and debt restructuring. In June 2023 alone, Rs 89,047.82 crore was invested through equity infusion for the administrative allotment of 4G and 5G spectrum, underscoring the government’s commitment to positioning BSNL competitively in the telecom sector.
Strategic collaborations with technology providers such as Tata Consultancy Services (TCS), Tejas Networks, and ITI have been fostered to facilitate the deployment of BSNL’s 4G network, which is designed to be upgradable to 5G technology. The government’s support extends beyond financial backing to include enabling infrastructure and policy frameworks crucial for a successful 5G launch, expected within six to eight months following the pan-India rollout of 4G services by March 2025. This comprehensive government intervention aims to ensure BSNL remains a vital player in India’s evolving telecommunications landscape, particularly in extending connectivity to underserved rural populations.
Operational and Market Performance Post-Revival Initiatives
Following the Centre’s approval of a comprehensive revival plan in October 2019, Bharat Sanchar Nigam Limited (BSNL) has demonstrated marked improvement in its operational and financial performance. The revival strategy encompassed a Voluntary Retirement Scheme (VRS) to reduce employee costs, debt restructuring via sovereign guarantee bonds, administrative allotment of spectrum for 4G services funded through capital infusion, monetization of core and non-core assets, and the proposed merger with MTNL. These measures have laid the foundation for BSNL’s gradual turnaround.
BSNL’s operating revenue rose by 7.8% year-on-year to ₹20,841 crore in FY25, up from ₹19,330 crore in the previous year, reflecting the company’s focus on innovation, customer satisfaction, and aggressive network expansion. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) nearly doubled, growing from ₹2,164 crore in FY24 to ₹5,396 crore in FY25, while asset monetisation proceeds surged by 77% year-on-year to ₹1,120 crore, providing additional financial support for infrastructure development. Cost control also played a critical role, with overall expenditures reduced by 3% to ₹25,841 crore in FY25 compared to ₹26,673 crore in FY24, aided by a ₹1,800 crore annual saving in finance costs and operational efficiencies through process automation.
On the service front, BSNL intensified its 4G rollout and fibre-optic network upgrades, strengthening connectivity in both urban and rural areas. Mobility services revenue increased by 15%, fibre-to-the-home (FTTH) revenue grew by 18%, and leased line services revenue rose by 14% over the third quarter of the previous year. The public sector operator’s mobility revenue in FY25 was up 6% year-on-year to ₹7,499 crore, FTTH revenue rose by 10% to ₹2,923 crore, and leased line revenue reached ₹4,096 crore, a 3.5% increase year-on-year. These gains highlight BSNL’s strategic shift towards high-speed internet and enterprise services to meet evolving consumer demand.
Despite the positive trajectory in revenue and operational metrics, BSNL’s wireline subscriber base continued to decline, standing at around 6.14 million users in December 2023, a continuation of a long-term downward trend. Conversely, the overall subscriber base increased, driven mainly by mobile subscriber additions; from 94.6 million in March 2014 to 103.6 million by March 2023. However, BSNL’s market share in the wireless segment remains under pressure amid stiff competition from private players such as Jio, Airtel, and Vi, which dominate the Indian telecom landscape.
The government’s role has been pivotal in supporting BSNL’s revival, through substantial equity infusion amounting to ₹44,993 crore for spectrum allocation in the 900 MHz and 1800 MHz bands, capital expenditure funding of ₹22,471 crore for indigenous 4G deployment, and viability gap funding of ₹13,789 crore to
Strategic Business Initiatives
BSNL’s recent financial turnaround has been underpinned by several strategic business initiatives focusing on innovation, cost optimization, and network expansion. Central to these efforts is the accelerated rollout of 4G technology, supported by the deployment of an indigenous 4G core network. The company partnered with Tata Consultancy Services (TCS) to facilitate the nationwide 4G rollout, aiming to strengthen its infrastructure amidst competition from private operators already advancing towards 5G networks. This approach allows BSNL to leverage its existing 4G core technology as a foundation for future 5G services, aligning with government-backed modernization plans.
Cost efficiency has been a major focus area, with BSNL implementing process automation and strategic resource management to reduce operational expenses. These measures have led to a significant reduction in finance costs, resulting in annual savings of approximately ₹1,800 crore and a marked decline in losses compared to the previous year. The company’s financial discipline, combined with revenue growth across mobility, Fiber-to-the-Home (FTTH), and leased line services, reflects a balanced approach to improving profitability while expanding service offerings.
Government support has played a pivotal role in BSNL’s revival strategy. Administrative allocation of spectrum in the 900 MHz and 1800 MHz bands, backed by equity infusion of ₹44,993 crore, enables the telco to enhance its network capabilities. Additionally, capital expenditure funding of ₹22,471 crore has been earmarked for indigenous 4G stack deployment, alongside viability gap funding of ₹13,789 crore to sustain rural wireline operations. These initiatives, combined with collaborations with technology providers, including efforts centered in Bengaluru, are designed to secure BSNL’s competitive edge in the Indian telecom market and facilitate its growth trajectory.
The focus on customer-centric service improvements and aggressive network expansion has also contributed to a rising subscriber base, which increased from 8.4 crore to 9 crore within six months. This growth, coupled with innovative offerings and enhanced operational efficiency, was hailed by Union Minister Jyotiraditya Scindia as a “significant turning point” for the company, marking its first quarterly profit since 2007. Through these strategic initiatives, BSNL is positioning itself to sustain momentum in revenue growth, aiming to surpass 20% growth by the end of the financial year.
Industry Response and Competitive Landscape
The telecom industry has closely watched BSNL’s recent financial turnaround with cautious optimism. After 18 years, BSNL reported a ₹280 crore profit in Q4, marking its second consecutive profitable quarter, which many attribute to rigorous cost-cutting measures and strategic network expansions. Industry experts acknowledge that while BSNL’s legacy landline business has largely bottomed out, growth in mobility services, Fiber-to-the-Home (FTTH), and leased line revenues has contributed significantly to its improved financial health.
The rollout of 4G services by BSNL has been particularly noteworthy, as it holds potential to reshape the Indian telecom sector, especially in rural and underserved regions. Despite delays in deploying 4G infrastructure, which have hindered the government’s ambitions to export indigenously developed telecom technologies abroad, the telco’s efforts to upgrade its fiber-optic network and enhance connectivity are seen as pivotal steps forward. Industry analysts highlight that BSNL not only plays a critical role in fostering competition but also serves as a testing ground for government-led indigenisation initiatives in telecom networks.
Competition remains intense, with private operators aggressively advancing their 5G capabilities. However, experts note that 4G technology will retain relevance in India for at least the next four years, giving BSNL a window to consolidate its position through focused innovation and network expansion. The government’s support enables BSNL to maintain operations in commercially challenging rural markets, where nearly 36% of its optical fiber customers reside, thus fulfilling a vital social and developmental mandate that private players often avoid. This unique positioning underscores BSNL’s dual role as a competitive market player and a strategic instrument in national telecom policy.
Impact and Significance
BSNL’s recent return to profitability, marked by a Rs 280 crore profit in Q4 FY2025 and the second consecutive quarter of profits after 18 years, represents a major turning point for the company and the Indian telecommunications sector. This financial milestone underscores the success of strategic initiatives such as aggressive network expansion, cost optimization, and service diversification, including enhanced 4G rollouts and the introduction of innovative offerings like National WiFi Roaming, BiTV, and India’s first private 5G connectivity for mining operations.
The impact of BSNL’s revival extends beyond the company’s balance sheets. It enables the government to advance its rural broadband agenda, with around 36% of BSNL’s optical fibre customers located in rural areas, thereby promoting digital inclusion in regions typically underserved by private operators. This role is particularly crucial as private telecom players dominate the market, making BSNL a key instrument in ensuring connectivity in economically non-viable areas.
Despite these gains, the long-term significance of BSNL’s turnaround will depend on multiple factors, including the timing and effectiveness of its 5G network rollout, its ability to offer competitive and compelling services, and its sustained cost management efforts. The revival also signals a shift in the company’s operational dynamics, highlighted by substantial reductions in finance costs and losses—over Rs 1,800 crore less than the previous year—and a doubling of EBITDA to Rs 2,100 crore in FY24.
BSNL’s performance improvement bolsters the government’s confidence in its state-owned enterprise, with communications minister Jyotiraditya Scindia describing the progress as a “significant turning point”. However, challenges remain, particularly the decline of BSNL’s traditional landline business and persistent income-related issues, which necessitate ongoing strategic adjustments to maintain growth momentum.
Future Outlook
BSNL’s recent financial performance, marked by a ₹280 crore profit in the fourth quarter and the company’s second consecutive profitable quarter after 18 years, has set a positive tone for its future prospects. The management remains optimistic about sustaining and accelerating revenue growth, with projections expecting an increase exceeding 20% by the end of the current financial year, driven by continued focus on innovation, customer satisfaction, and aggressive network expansion.
A key component of BSNL’s strategic future is the accelerated rollout of its 4G network, which is anticipated to play a transformative role in the Indian telecom sector. Industry experts suggest that while private operators are rapidly pursuing 5G, 4G will remain relevant and crucial for at least the next four years, providing BSNL an opportunity to strengthen its market position. The deployment of 4G infrastructure is also foundational for the company’s eventual 5G network rollout, as the 4G core technology will support future 5G services.
Despite these positive developments, challenges remain. BSNL’s income streams, particularly from its traditional landline business, have declined significantly and require attention to diversify revenue sources further. However, ongoing cost optimization measures have resulted in a substantial reduction in finance costs and overall expenditure, contributing to a significant decrease in losses by over ₹1,800 crore compared to the previous year. The government and company leadership hope that maintaining expenditure discipline alongside revenue growth will help sustain profitability in the coming years.
The company’s subscriber base growth, which expanded from 8.4 crore to 9 crore within six months, signals increasing market acceptance of its services, including mobility, Fiber-to-the-Home (FTTH), and leased line services. This growth underpins BSNL’s confidence in a continued upward trajectory supported by service expansion and cost-efficiency strategies. The union minister for communications, Jyotiraditya Scindia, described the recent profitability as a “significant turning point” and emphasized the importance of ongoing service and subscriber growth to secure BSNL’s revival.
