BSNL Reports Profits for Two Consecutive Quarters; FY-25 Indicates Positive Trend
Bharat Sanchar Nigam Limited (BSNL) has reported a significant turnaround in its financial performance for the fiscal year ending March 31, 2025. The company announced its audited results during the 243rd Board meeting, highlighting a return to profitability with a positive profit after tax (PAT) of ₹280 crore in the fourth quarter. This marks a remarkable recovery from a loss of ₹849 crore in the same quarter last year. Overall, BSNL has reduced its annual losses by 58%, showcasing improved operational metrics and revenue growth.
Return to Profitability
BSNL’s financial results reveal a notable shift towards profitability. The company achieved a profit after tax of ₹280 crore in the fourth quarter of FY-25, following a profit of ₹262 crore in the third quarter. This marks the first instance of back-to-back profitable quarters for BSNL. The overall loss for the fiscal year decreased significantly to ₹2,247 crore, down from ₹5,370 crore in FY-24. This improvement reflects the effectiveness of BSNL’s strategic initiatives and operational efficiencies, which have contributed to a more stable financial footing.
Stronger Operating Metrics
The operational performance of BSNL has also shown marked improvement. The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surged to ₹5,396 crore in FY-25, up from ₹2,164 crore in the previous year. This increase has resulted in a higher EBITDA margin of 23.01%, compared to 10.15% in FY-24. Additionally, the number of circles achieving EBITDA-positive status rose to 27, up from 17 in the previous year. Furthermore, 10 circles reported a profit after tax, a significant increase from just three circles in FY-24. These metrics indicate a robust recovery in BSNL’s core operations.
Revenue Growth and Cost Management
BSNL’s revenue momentum has been strong, with operating revenue reaching ₹20,841 crore in FY-25, reflecting a 7.8% increase from ₹19,330 crore in FY-24. Total income also rose by 10% to ₹23,427 crore, compared to ₹21,302 crore the previous year. The growth spans all core revenue segments, including mobility, fiber-to-the-home (FTTH), and leased lines. Notably, asset monetization efforts yielded ₹1,120 crore, a remarkable 77% increase. On the cost side, total expenditure decreased by 3% to ₹25,841 crore, while finance costs were trimmed by 14% to ₹1,527 crore. This disciplined approach to cost management has played a crucial role in BSNL’s financial recovery.
Future Outlook and Strategic Investments
Looking ahead, BSNL aims to sustain its growth trajectory while managing operating costs effectively. The company anticipates that increased depreciation and amortization from recent spectrum acquisitions and heavy capital expenditures may impact short-term results. However, the long-term profitability outlook remains positive, bolstered by the nationwide rollout of 4G and 5G services, investments in core infrastructure, and the upgrading of aging fiber networks. BSNL’s commitment to asset monetization is expected to generate additional funds for reinvestment, further strengthening its capital program. The company’s leadership emphasizes a focus on service excellence and inclusivity, aiming to redefine telecom standards in public service while ensuring affordable connectivity for all Indians.
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