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India’s state-run telecom operator, Bharat Sanchar Nigam Limited (BSNL), has reported a 14.51% year-on-year increase in operating revenue, reaching Rs 5,026.4 crore for the first quarter of FY26. While the telco posted net profits of Rs 260 crore and Rs 280 crore in the preceding two quarters, it reported a net loss of Rs 1,049 crore in Q1 FY26, an improvement from the Rs 1,542 crore loss recorded in the same period last year.
The growth in revenue is a positive sign for BSNL and is expected to contribute to an improvement in average revenue per user (ARPU). Meanwhile, the company’s expenses fell by 9.4% sequentially to Rs 6,840 crore, indicating that cost optimisation efforts are beginning to show results. This trend of rising revenues alongside reduced expenditure reflects improved operational efficiency and agility as BSNL continues to streamline its operations.
BSNL’s strategic focus is now shifting towards the deployment of 5G services in selected regions, with testing already underway in New Delhi. The company also reported an increase in EBITDA (earnings before interest, taxes, depreciation, and amortisation), which rose to Rs 1,501.9 crore in Q1.
In a significant development, BSNL and Numaligarh Refinery signed a Memorandum of Understanding (MoU) earlier this month to implement a private 5G network at the refinery. This marks the first deployment of a private 5G network in India’s oil refining sector, representing a milestone for both organisations in advancing digital infrastructure in critical industries.
Encouragingly, BSNL also saw a rise in its active user base in June 2025, an important indicator of customer engagement in a highly competitive telecom market. The operator’s VLR (visitor location register) subscribers increased by 1.15 million, growing from 55.95 million in May to 57.10 million in June. This increase in active users contrasts with a slight decline of 0.30 million in the overall wireless subscriber base over the same period.