BSNL Returns to Profitability After 17 Years, EBITDA Doubles Over Four Years: A ‘Turning Point’ for the Telecom Giant

Bharat Sanchar Nigam Limited (BSNL) has achieved a historic financial turnaround, reporting a net profit of ₹262 crore in the October-December quarter (Q3 FY25)—its first profitable quarter since 2007. The state-owned telecom company’s return to profitability after 17 years marks a pivotal moment in its revival strategy, driven by service expansion, increased subscriber base, and improved operational efficiency.

Union Minister for Telecommunications, Jyotiraditya Scindia, hailed the Q3 performance as a “significant turning point” for BSNL, emphasizing the company’s strategic growth across mobility, Fiber-to-the-Home (FTTH), and leased line services.

BSNL Q3 FY25 Financial Highlights

• Net Profit: ₹262 crore (First profit after 17 years)
• Revenue Growth: Driven by 14-18% expansion across key telecom services
• EBITDA Growth: Doubled over the past four years, reflecting improved cost management and efficiency

This turnaround underscores BSNL’s strategic transformation under government support, cost rationalization, and a focused push towards next-generation telecom services.

Factors Driving BSNL’s Comeback

1. Service Expansion in High-Growth Segments

BSNL has aggressively expanded its Fiber-to-the-Home (FTTH), mobility, and enterprise leased line services, which have witnessed 14-18% growth over the past year. These segments have been key revenue drivers, strengthening BSNL’s market position.

2. Strengthened Subscriber Base

• FTTH adoption has surged, driven by competitive pricing and improved service quality.
• BSNL’s wireless subscriber base has expanded, despite intense competition from private telecom giants.
• Increased focus on enterprise services has bolstered revenues from corporate and government clients.

3. Government Support & Strategic Investments

The Indian government’s continuous financial backing, including the ₹1.64 lakh crore revival package, has helped BSNL:

• Enhance network infrastructure
• Expand fiber connectivity in rural and semi-urban areas
• Accelerate its 4G and upcoming 5G rollout

4. Operational Efficiencies & Cost Optimization

• EBITDA has doubled over the last four years, indicating successful cost-cutting measures and operational streamlining.
• Upgradation of legacy infrastructure has improved service delivery and reduced maintenance costs.

What This Means for the Indian Telecom Sector

BSNL’s return to profitability signals a stronger competitive landscape in India’s telecom industry, which has been dominated by private players like Reliance Jio, Airtel, and Vodafone Idea.

Government-backed telecom expansion ensures better service penetration in rural and underserved areas.
Increased competition may lead to better pricing and improved service offerings for consumers.
BSNL’s growing presence in fiber and enterprise segments challenges private players’ dominance in broadband services.

Looking Ahead: BSNL’s Future Growth Strategy

BSNL’s strategic focus for the next phase of growth includes:

Nationwide 4G Rollout: Accelerating 4G expansion to boost mobile subscriber base.
5G Deployment Roadmap: Government-backed 5G development, ensuring BSNL’s competitiveness in the next telecom revolution.
Broadband Leadership: Strengthening FTTH and fiber broadband services to capture India’s growing demand for high-speed internet.
Expansion in Enterprise Solutions: Growing market share in leased line services, cloud solutions, and government connectivity projects.

With strong financial recovery and strategic investments, BSNL is poised to regain its position as a key player in India’s telecom sector.