State-owned telecom company Bharat Sanchar Nigam Ltd (BSNL) has reported a net profit of Rs 262 crore for the third quarter of the fiscal year 2025. This marks the company’s first profitable quarter since 2007, a significant turnaround from the net loss of Rs 1,569.22 crore in the same quarter of the previous year. BSNL’s return to profitability reflects its strategic expansion, cost-cutting measures, and improved performance across multiple business segments.
BSNL witnessed substantial growth in its key revenue streams. The company’s mobility services revenue increased by 15% year-on-year. Additionally, its fibre-to-the-home (FTTH) and leased line services reported growth of 18% and 14%, respectively. These gains highlight the company’s efforts to strengthen its service offerings and expand its customer base in the competitive telecom sector.
BSNL attributed its improved financial performance to multiple strategic initiatives, including:
Aggressive 4G Network Expansion: The company has been rapidly deploying its fourth-generation (4G) network, enhancing service quality and coverage.
Optic Fibre Infrastructure Upgrades: Strengthening its fibre-optic network has allowed BSNL to offer better broadband connectivity and improved network speeds.
Cost Optimization Measures: BSNL successfully reduced its operational and financial costs, leading to a significant drop in overall expenses.
Decline in Finance Costs: The company reported a reduction in finance-related expenditures, contributing to a Rs 1,800 crore decrease in losses compared to the previous fiscal year.
BSNL’s chairman and managing director, Robert J Ravi, has expressed confidence in the company’s future growth. He projects a revenue increase of over 20% by the end of the financial year on March 31, 2025. The telecom provider is focused on rapidly deploying its nationwide 4G network, with plans to introduce 5G services in select locations soon after full 4G implementation.
BSNL is undertaking digital transformation initiatives aimed at improving service quality and customer experience. These efforts include:
Enhancing Digital Infrastructure: The company is investing in new technologies to offer seamless connectivity and faster broadband speeds.
Expanding Coverage Nationwide: By deploying its network at more locations, BSNL aims to reach a broader customer base.
Innovative Service Offerings: The telco is working on new services that cater to modern digital needs, such as enhanced cloud storage and IoT-based solutions.
The deployment of BSNL’s 4G network is being led by a consortium headed by Tata Consultancy Services (TCS) and the Centre for Development of Telematics (C-DoT). This large-scale project aims to establish 4G connectivity at 1,00,000 sites across the country. The telco also plans to enable 5G services alongside its 4G rollout to ensure seamless connectivity and retain its subscriber base.
The Indian government has played a crucial role in BSNL’s revival, approving an additional Rs 6,000 crore in funding to support the company’s capital expenditure. This financial aid will also benefit BSNL’s subsidiary, Mahanagar Telephone Nigam Ltd (MTNL). Since 2019, the government has injected Rs 3.22 lakh crore into BSNL and MTNL through three comprehensive revival packages. These investments have helped both entities achieve operational profitability since FY 2020-21.
Despite BSNL’s progress, it still lags behind its competitors in the 5G race. While leading telecom players like Reliance Jio and Bharti Airtel have completed their nationwide 5G rollouts and begun offering commercial 5G-driven fixed wireless access services, BSNL and Vodafone Idea have yet to launch their 5G networks. However, with its ongoing infrastructure expansion and government support, BSNL aims to strengthen its position in the Indian telecom industry.
Conclusion
BSNL’s return to profitability after 17 years marks a significant milestone for the company. With aggressive network expansion, cost-cutting strategies, and government-backed financial aid, the telecom provider is on track for sustained growth. As it gears up for 5G deployment, BSNL’s continued focus on digital transformation and improved service offerings will be key to its long-term success in the competitive Indian telecom sector.