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BSNL Hits Two-Quarter Profit Streak, Posts ₹280 Cr in Q4 FY25

After years of financial losses, BSNL marks a crucial turnaround with rising revenues, cost control, and major 4G investments powering its comeback.

BSNL Achieves Consecutive Quarterly Gains After a Long Financial Drought

State-run telecom player Bharat Sanchar Nigam Limited (BSNL) has achieved a rare financial milestone by recording a net profit of ₹280 crore in the fourth quarter of FY25. This marks the second consecutive quarter of profitability for the company—a first in its operational history. The turnaround is largely credited to improved earnings from its mobile services, driven by a rapid expansion of its 4G network.

During the third quarter of FY25, BSNL recorded a net profit of ₹262 crore, breaking a continuous streak of losses that had lasted since 2007. The shift from a net loss of ₹849 crore in Q4FY24 to consistent quarterly gains underscores a renewed operational focus and government-backed reforms.

Annual Losses Shrink Significantly Despite Headwinds

Despite closing the fiscal year with a net loss of ₹2,247 crore, BSNL achieved a significant 58% reduction from the ₹5,370 crore deficit reported in FY24. A combination of revenue growth, cost efficiency, and aggressive investments contributed to this significant reduction.

The telecom giant also recorded its highest-ever capital expenditure (capex) in FY25, underscoring a strategic pivot towards digital infrastructure and service quality. Enhanced EBITDA margins and rising income from core and non-core segments further supported the overall improvement.

Growth Observed Across Revenue, EBITDA, and Key Business Segments

BSNL’s operating revenue witnessed a healthy growth of 7.8%, reaching ₹20,841 crore in FY25, up from ₹19,330 crore the previous year. For the period, the overall income reached ₹23,427 crore, marking a 10% growth compared to ₹21,302 crore in the previous year.

Mobile services, including interconnect usage charges (IUC), contributed ₹7,499 crore, marking a 6% jump from the previous year. The Fibre-to-the-Home (FTTH) segment followed suit, climbing 10% to ₹2,923 crore. Revenue from leased lines and enterprise services also improved modestly by 3.5%, totaling ₹4,096 crore.

A key highlight was the massive growth in earnings before interest, tax, depreciation, and amortisation (EBITDA), which more than doubled to ₹5,396 crore from ₹2,164 crore in FY24. This leap pushed the EBITDA margin to 23.01%, compared to just 10.15% a year ago.

Moreover, the number of telecom regions achieving positive EBITDA climbed to 27 in FY25, up from only 17 in the previous year. Impressively, 10 of those circles also turned net profitable, compared to only three a year earlier.

Operational Discipline and Strategic Execution Drive Revival

BSNL attributed the financial rebound to tight fiscal discipline and streamlined operational execution. The firm trimmed its overall spending by 3%, bringing it down to ₹25,841 crore in FY25 from ₹26,673 crore the previous year, while finance expenses were cut by 14%, falling to ₹1,527 crore. However, due to heavy investment activity, depreciation and amortisation expenses rose to ₹6,283 crore.
Asset monetisation played a notable role in easing financial pressure. Income from this source surged by 77%, hitting ₹1,120 crore over the course of the year.

Record-Breaking Investments and Expansion in 4G/5G

The fiscal year 2025 was a landmark period for BSNL regarding capital expenditure on infrastructure. The company injected a record ₹26,022 crore into capex, with ₹15,324 crore allocated for equipment and towers and ₹10,698 crore spent on spectrum acquisition. These investments primarily support the nationwide rollout of 4G and the gradual buildout of 5G capabilities.

According to the telecom ministry, BSNL has already deployed over 98,000 4G towers across the country. In addition, the company has launched early-phase testing for its 5G network, with pilot programs now live in cities including Jaipur, Lucknow, Chandigarh, Bhopal, Kolkata, Patna, Hyderabad, and Chennai.

Leadership Vision: Profits Will Follow Purpose

BSNL Managing Director Robert J. Ravi emphasized that the telecom PSU’s sharp turnaround is not just about numbers but about redefining the organization’s long-term purpose. He highlighted professional management, sustained government backing, and a focus on holistic growth as key elements behind the revival.

He also pointed out that the company will continue on its current trajectory without relying on tariff hikes. “Our focus is not solely on pursuing profit as the ultimate objective. We’re committed to delivering value, expanding inclusivity, and enhancing services—profits will follow naturally,” he stated.

Outlook: Solid Fundamentals, But Short-Term Pressure Ahead

While FY25 has laid a robust foundation, BSNL has cautioned that rising depreciation and amortisation from recent spectrum acquisitions could dampen short-term profitability. Despite this, the company remains confident in its medium-to-long-term outlook.

Future prospects are anchored in further deployment of indigenous 4G and 5G networks, innovations like 5G-as-a-service, and the continual upgrade of legacy fibre infrastructure. With a renewed strategy and a disciplined approach, BSNL appears set on a path toward sustainable growth and transformation.

Conclusion

BSNL’s second consecutive quarterly profit signals a crucial inflection point in its long journey of transformation. From deep losses to operational gains, this shift demonstrates the impact of disciplined financial management, government support, and a renewed technology-focused approach. While challenges remain in the form of short-term cost pressures, the long-term vision backed by record investments in 4G and 5G infrastructure puts BSNL in a strong position to compete in India’s dynamic telecom market. If the current momentum is sustained, the once-struggling telecom PSU could well become a symbol of state-owned enterprise revival.

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