BSNL, the state-run telecom operator, has announced a profit for the third quarter of FY25 — its first since 2007. The debt-laden company has struggled with losses for years, making this achievement a significant milestone. This turnaround reflects BSNL’s commitment to innovation, rapid network expansion, cost efficiency, and customer-centric services.
In this article, we explore the key reasons behind BSNL’s return to profitability, its current market position, and future plans.
What’s Happening?
On February 14, 2025, BSNL reported a profit of Rs 262 crore for Q3FY25 — its first in nearly 17 years.
Looking at the revenue, the company reported Rs 4,969 crore, marking a 9.3% YoY increase from Rs 4,546 crore. For the nine months ending December 31, 2024, total revenue stood at Rs 14,197 crore, reflecting a 10% rise from Rs 12,905 crore in the previous year.
Additionally, EBITDA for the third quarter surged to Rs 1,466 crore, a sharp increase from Rs 316 crore in the same period last year. BSNL’s financial recovery is primarily driven by reduced finance costs and overall expenses, which have helped cut losses by over Rs 1,800 crore.
How Did BSNL Achieve Profitability?
BSNL attributes its turnaround to several key factors:
Strong Revenue Growth: The company recorded a 15% increase in revenue, with Fibre-to-the-Home (FTTH) revenue growing by 18% and Leased Line service revenue rising by 14% compared to Q3FY24.
Cost Reduction: A reduction in finance costs and overall expenditure led to a Rs 1,800 crore decline in losses. The company has also improved efficiency through automation and strategic resource management.
Network Expansion: Accelerated 4G rollout and fibre-optic infrastructure upgrades have enhanced connectivity across rural and urban India.
Digital Innovations: Customer-centric digital advancements, such as National WiFi Roaming, have improved user experience and accessibility.
Telecom Minister Jyotiraditya Scindia reported that BSNL’s subscriber base grew from 8.4 crore in June to around 9 crore by December 2024.
However, according to the latest TRAI report, BSNL, along with Bharti Airtel and Vodafone Idea, experienced subscriber losses in November 2024. BSNL lost approximately 3.4 lakh subscribers that month, bringing its total user base to 9.20 crore.
Private telecom operators continue to dominate the market, holding a combined 91.80% share, with Reliance Jio leading at 40.15%.
Earlier, BSNL had gained subscribers due to tariff hikes by private telecom players and SIM consolidation. In August 2024, it added 25.3 lakh users as customers shifted to its network following price increases by major telecom companies, as reported by NDTV Profit.
Government Support
On February 7, 2025, the Union Cabinet approved an additional Rs 6,000 crore financial package for BSNL’s 4G expansion. These funds will bridge the shortfall in the company’s planned capital expenditure (Capex) and support its subsidiary, MTNL, as per The Economic Times.
Since 2019, the government has injected approximately Rs 3.22 lakh crore into BSNL and MTNL through revival packages, including funding for the 4G rollout. Thanks to these measures, both companies began posting operating profits from FY 2020-21.
BSNL’s New Budget Plans
BSNL continues to challenge telecom giants like Jio, Airtel, and Vi with competitive offerings. The company has introduced two budget-friendly recharge plans, priced at Rs 411 and Rs 1,515. The Rs 411 plan provides 90 days of validity, while the Rs 1,515 plan extends benefits for a full year — helping users cut down on frequent recharge expenses.
What’s in it for Investors?
BSNL’s return to profitability after nearly 17 years signals a major turnaround and puts the PSU telecom firm in the spotlight. This financial recovery and improved operational efficiency could also pave the way for its long-discussed merger with MTNL, unlocking synergies and enhancing shareholder value.
Additionally, BSNL’s revival introduces greater competition in the telecom sector, potentially leading to more competitive pricing — benefiting consumers while strengthening its market position.
What’s Next?
According to a press release by PIB, BSNL expects revenue growth to exceed 20% by the end of FY25. This resurgence underscores the company’s operational improvements, strategic initiatives, and continued financial backing from the government.
Moreover, BSNL has been aggressively expanding its 4G network, installing over 62,000 new towers across India as of December 14, 2024. Telecom Minister Scindia had initially set a target of 1 lakh tower installations by June 2025 — a goal that has already been met. This milestone reinforces BSNL’s commitment to strengthening its network and competing more effectively with private telecom players.
*The companies mentioned in the article are for information purposes only. This is not an investment advice.
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