BSNL rebounds with profits and 4G push

State-owned telecom provider Bharat Sanchar Nigam Limited (BSNL) has reported net profits for two consecutive quarters, a significant milestone for the company, which has struggled for years to turn a profit. Unexpectedly, BSNL reported net profits for both the third and fourth quarters of the 2024–25 financial year (October–December 2024 and January–March 2025).

In the fourth quarter of FY25, BSNL posted a net profit of Rs 280 crore, a marked turnaround from the ₹849 crore loss it incurred during the same period the previous year. In the preceding quarter, the company reported a net profit of Rs 262 crore. This brings BSNL’s total profit after tax (PAT) for the two quarters to Rs 542 crore. The company’s total operating revenue for the year reached Rs 20,841 crore, reflecting a 7.8% year-on-year increase.

In FY25, BSNL’s mobility revenues rose to Rs 7,499 crore, marking a 6% YoY increase. Meanwhile, its fibre-to-the-home (FTTH) service revenue grew by 10% YoY to Rs 2,923 crore. Revenue from asset monetisation also played a crucial role, surging by 77% to Rs 1,120 crore, a likely contributor to the overall profitability. Additionally, a reduction in finance and expenditure costs further supported the company’s positive performance.

BSNL also managed to add new subscribers for five consecutive months during the financial year, particularly following tariff hikes by private telecom providers. However, this trend did not sustain. After October, BSNL resumed its pattern of subscriber losses, a situation expected to continue unless the company strengthens its core operations. To attract high-value customers, BSNL must offer a network experience comparable to that of private operators.

According to the Telecom Regulatory Authority of India (TRAI) report for March 2025, BSNL added 49,177 new subscribers in that month, following a stabilisation in February when it lost 5.67 lakh users. Its total subscriber base now stands at 9.10 crore.
Currently, BSNL is focused on expanding its 4G footprint, with a target of deploying one lakh sites by the end of June 2025. This network expansion is being supported by the Universal Service Obligation Fund (USOF), with an emphasis on enhancing rural connectivity.

Speaking at the curtain-raiser event for India Mobile Congress (IMC) 2025 in Delhi, Union Minister for Communications Jyotiraditya Scindia announced that BSNL had installed 93,450 4G towers across the country, bringing the company closer to its one lakh-site target. While BSNL still has a way to go, the minister noted that progress remains on track.

On 20 May 2025, Tata Consultancy Services (TCS) confirmed that it would deploy BSNL’s 4G mobile network after receiving an Advance Purchase Order (APO) worth Rs 2,903.22 crore. The APO includes planning, engineering, supply, installation, testing, commissioning, and annual maintenance of the network infrastructure. Detailed purchase orders will be issued upon meeting conditions outlined in the APO.

Notably, BSNL has already prepared its core network for 5G. The technology stack is being delivered by a consortium led by TCS, which includes Tejas Networks and the Centre for Development of Telematics (C-DoT).