BSNL slips back into losses, reports ₹1,049 cr deficit in June quarter

After reporting profits for two consecutive quarters in 18 years, state-owned telecom operator Bharat Sanchar Nigam Ltd (BSNL) has returned to the red, with a net loss of ₹1,049 crore in the June quarter.

This marks a sharp reversal from the March-quarter profit of ₹280 crore and the December-quarter profit of ₹262 crore.

BSNL’s revenue from operations fell 24% quarter-on-quarter to ₹5,029.6 crore, with declines across all segments—consumer mobility, enterprise, and consumer fixed access.

The losses came even as the telecom operator saw a dip in total expenses, barring employee costs. Total expenses fell 9.4% sequentially to ₹6,840 crore. Employee costs, which constitute a major 38.6% of its revenue, rose 39% on-quarter to ₹1,940 crore.

However, on a year-on-year basis, BSNL’s losses narrowed during the quarter from ₹1,542 crore in the year-ago period, helped by a 14.5% increase in revenue from ₹4,392.6 crore, largely owing to the roll-out of 4G services at close to 100,000 sites and lower tariffs.

It also witnessed a 43% on-year increase in depreciation and amortization expenses to ₹1,940 crore.

CapEx push
“The outlook for the coming year will continue to show strong top-line revenue growth alongside a steady decline in operating costs—both critical to sustained profitability. However, in the near term, higher depreciation and amortization arising from recent spectrum acquisitions and heavy CapEx will weigh on quarterly results despite these solid fundamentals,” the communications ministry said in a 27-May statement.

“Although profit after tax may be subdued next fiscal year because of the sizeable CapEx and spectrum infusion, these investments are expected to spur accelerated growth and profitability thereafter,” the ministry added.

BSNL had 90.46 million mobile subscribers as of June end, 0.6 million fewer than 91.06 million as of March end, according to data from the Telecom Regulatory Authority of India (TRAI).

However, the subscriber base grew by nearly 5.5 million compared to June 2024, when the company had 85.6 million users.

“It is not important to look at operating cash flows or net profit. It’s important to look at customer satisfaction. It’s important to look at the growth of the customer base, upselling and cross-selling of products,” communications minister Jyotiraditya Scindia told reporters on the sidelines of a meeting with the chief general managers (CGM) of all the circles of BSNL on 28 July.

Scindia had also asked BSNL officials to aim for 50% growth in its mobile services business and 25-30% growth in the enterprise segment in 2026. The minister has asked BSNL to increase its average revenue per user (ARPU)—a key metric for a telecom company’s growth—by improving customer satisfaction and adding more subscribers.

BSNL’s monthly Arpu varies from circle to circle. Scindia said some circles have an Arpus of ₹40-45, while others have an Arpus of ₹175 per month.

The government has planned a ₹47,000 capex boost for the telecom player, the DoT said in a 13-August post on X, quoting Scindia.

To be sure, BSNL added assets worth ₹26,022 crore in 2024-25. LiveMint