BSNL Returns to Profitability After 17 Years: Posts ₹262 Crore PAT in Q3 FY25
In a significant turnaround, Bharat Sanchar Nigam Limited (BSNL) has reported a net profit of ₹262 crore for the third quarter (Q3) of the financial year 2024-25 (FY25). This marks the first instance of profitability for the public-sector telecom giant since 2007, signifying a major revival in its financial and operational performance.
BSNL’s mobility services grew by 15% year-on-year (YoY), while its Fiber-to-the-Home (FTTH) segment witnessed an 18% revenue surge, reflecting the company’s expanding customer base and service enhancements.
The company achieved this historic milestone by reducing financial costs, optimizing expenditure, and improving operational efficiencies. Compared to the previous fiscal year, BSNL successfully narrowed its losses by over ₹1,800 crore. The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) has doubled over the last four years, reaching an impressive ₹2,100 crore in FY24.
BSNL’s Financial and Operational Revival: Key Factors Behind the Turnaround
1. Strategic Cost Reduction and Financial Optimization
One of the primary drivers behind BSNL’s return to profitability has been its aggressive cost-cutting measures. The company implemented:
- Reduction in operational expenditures, including rationalization of non-essential expenses.
- Financial restructuring, leading to lower debt servicing costs.
- Increased operational efficiency, helping boost overall revenue generation.
These initiatives collectively helped bring down losses by ₹1,800 crore, making BSNL financially more sustainable.
2. Strong Growth in Mobility and FTTH Segments
BSNL’s mobile services have shown a 15% YoY growth, driven by:
- Expanded 4G services across key markets.
- Competitive tariff plans attracting new subscribers.
- Better network coverage and improved customer experience.
Additionally, BSNL’s Fiber-to-the-Home (FTTH) services saw an 18% increase in revenue, fueled by:
- Rising demand for high-speed broadband in both urban and rural areas.
- Competitive pricing and strategic partnerships with local service providers.
- Enhanced infrastructure to deliver high-quality internet services.
These two segments have become key revenue contributors, enabling BSNL to strengthen its market position against private telecom giants.
3. Government Support and 4G/5G Expansion Plans
BSNL’s revival has been backed by strong government support, including:
- A ₹1.64 lakh crore financial relief package announced in 2022 to enhance network expansion.
- Clearance of outstanding dues and financial restructuring, helping the company stabilize its balance sheet.
- Investment in indigenous 4G and future 5G networks, enabling BSNL to compete with private telecom operators.
The upcoming 4G and 5G rollout plans, supported by government funding, are expected to further boost BSNL’s financial performance in the coming years.
Comparing BSNL’s Performance with Private Telecom Players
Despite its turnaround, BSNL still faces stiff competition from private players like Jio, Airtel, and Vi. Here’s how its financial performance compares:
| Operator | Q3 FY25 Profit (PAT) | Revenue Growth | Market Share |
|---|---|---|---|
| BSNL | ₹262 crore | Mobility: 15% FTTH: 18% | ~10% |
| Jio | ₹5,580 crore | 13.5% YoY growth | 39% |
| Airtel | ₹3,280 crore | 12% YoY growth | 31% |
| Vi (Vodafone Idea) | Loss: ₹6,100 crore | Revenue Decline | 20% |
While BSNL’s profit figures are modest compared to Jio and Airtel, its revenue growth and market position improvements indicate a strong comeback trajectory.
Future Outlook: What’s Next for BSNL?
BSNL’s return to profitability marks a critical turning point, but the company still faces several challenges and opportunities ahead.
1. Nationwide 4G and 5G Deployment
- BSNL aims to launch 4G services pan-India by mid-2025, with an eventual upgrade to 5G.
- The expansion will help reduce subscriber churn and attract high-value customers.
2. Strengthening Broadband and FTTH Services
- With rising demand for high-speed internet, FTTH remains a key growth driver.
- BSNL is focusing on expanding its fiber network to tier-2 and tier-3 cities, where demand is surging.
3. Maintaining Financial Discipline
- Sustained cost optimization will be crucial in maintaining profitability.
- The government’s continued financial support will help BSNL execute its revival strategy effectively.
4. Competing with Private Players
- Pricing competitiveness and service quality improvements are essential to retain and grow market share.
- BSNL needs to innovate and modernize its offerings to match the speed and efficiency of private telecom operators.
