For the first time in 17 years, BSNL has reported a profitable quarter in Q3 FY25, with a profit of ₹22 crore. This is a significant improvement from the ₹1,569 crore loss reported in Q3 FY24. Additionally, the Indian government is making major changes to BSNL’s asset structure. The Minister of Telecom, Jyotiraditya Scindia, recently announced that the government plans to monetize BSNL’s land assets.
In this blog, we will analyze how BSNL became profitable after such a long time and why it struggled for years. We will also discuss the government’s plans for BSNL’s revival and understand why it is crucial for the company, government users, and the Indian economy.
How Did BSNL Become Profitable?
There are two major reasons behind BSNL’s financial improvement:
1. Revenue Growth
BSNL’s revenue increased from ₹4,546 crore in Q3 FY24 to ₹4,969 crore in Q3 FY25. Its mobility services, Fiber to the Home (FTTH) services, and leased line services grew by 15%, 18%, and 14% year-on-year, respectively. According to a PIB report, this growth was driven by Wi-Fi roaming, TVIF TV, fast 4G rollout, and fiber optic infrastructure expansion.
BSNL’s Chairman and Managing Director, Mr. A. Robert J. Ravi, stated that the company’s overall revenue could grow by 20% by the end of the financial year.
2. Cost Optimization
BSNL reduced its total expenditure from ₹4,741 crore in Q3 FY24 to ₹4,320 crore in Q3 FY25, an 11% reduction. The company also cut employee benefit costs, which fell from ₹2,121 crore in Q3 FY24 to ₹1,735 crore in Q3 FY25—a 14% reduction.
Capital expenditure (Capex) is a significant part of the telecom sector, often requiring loans that add to financial costs. BSNL’s finance costs dropped from ₹442 crore in Q3 FY24 to ₹389 crore in Q3 FY25.
A company can improve its profits in two ways—either by increasing revenue or reducing expenses. BSNL did both, leading to a reduction of over ₹1,800 crore in losses.
Why Did It Take BSNL 17 Years to Become Profitable?
Despite this positive quarter, BSNL has struggled for years. Here’s why:
1. Rising Debt
By FY22, BSNL’s debt had reached ₹44,000 crore. Government revival packages helped reduce this debt to ₹28,920 crore and further down to ₹23,297 crore by FY24. While the debt has decreased, it remains a significant burden.
To put this in perspective:
- BSNL’s revenue is ₹21,137 crore, meaning its debt is over 9% of its revenue.
- Jio’s debt is ₹52,740 crore, but its revenue exceeds ₹1 lakh crore, making its debt just 52% of revenue.
- Airtel has a debt of ₹1.519 lakh crore and revenue of ₹1.514 lakh crore, with a debt-to-revenue ratio of about 3%.
2. Slow Adoption of New Technology
While Jio and Airtel are already competing in the 5G space, BSNL is still struggling to roll out 4G. Initially, BSNL planned to establish 1 lakh 4G sites by July 2024. However, by December 2024, only 61,492 sites were set up, with just 5,135 operational. This delay has pushed BSNL’s full 4G rollout to June 2025. As a result, many subscribers switched to other networks, causing further customer losses.
Government’s Revival Efforts for BSNL
To help BSNL financially, the government has introduced several revival plans over the years:
1. 2019 Revival Plan – ₹69,000 crore
- Introduced a Voluntary Retirement Scheme (VRS), allowing 30,000–35,000 employees to retire voluntarily. However, nearly 80,000 employees opted for VRS, leading to a ₹1,542 crore gratuity payout.
- While the VRS reduced costs, it also affected service quality as BSNL lost nearly half of its workforce.
2. 2022 Revival Plan – ₹1.64 lakh crore
- BSNL was allocated 4G spectrum worth ₹44,993 crore.
- A ₹2,471 crore capex plan was introduced to develop an indigenous 4G network.
- The government provided ₹1,789 crore to cover the cost of wireline operations in rural areas.
3. 2023 Revival Plan – ₹89,000 crore
- BSNL received 4G and 5G spectrum to provide nationwide services.
- The plan aimed to expand BSNL’s network in underdeveloped regions.
2024: Focus on Asset Monetization
Instead of a new revival package, the government now plans to monetize BSNL’s land assets to raise ₹4,000 crore. The process will be carried out in three phases:
- First Phase – Assets worth less than ₹100 crore will be monetized directly by BSNL’s Board of Directors.
- Second Phase – Higher-value assets will be managed by a special group of ministers.
- Third Phase – The most valuable land assets will be handled by the Ministry of Finance through the National Land Monetization Corporation.
BSNL has already raised ₹2,387 crore through land and building monetization and ₹824 crore through tower and fiber cable monetization since 2019.
Why Is BSNL’s Revival Important?
BSNL is a crucial part of India’s telecom sector. While private players like Jio and Airtel cater to premium customers, BSNL serves the masses.
- Private telecom operators focus primarily on financial health. Airtel’s ARPU (Average Revenue Per User) in Q3 FY25 was ₹245, Jio’s was ₹223, while BSNL’s was just around ₹90.
- BSNL’s low pricing makes telecom services affordable for the underprivileged and underserved populations. Without BSNL, telecom services might become unaffordable for many, limiting digital penetration and social progress.
Additionally, BSNL supports Indian telecom equipment manufacturers. For example, it is working with Tejas Networks, Lekha Wireless, and Galore Networks to develop 5G sites across 1,876 locations in Delhi-NCR. Unlike private telecom companies that often partner with foreign firms, BSNL helps local players grow.
The Big Question: Can BSNL Sustain Its Profitability?
BSNL’s first profitable quarter in 17 years is a positive sign, but the bigger question is whether it marks the beginning of a long-term trend or just a temporary improvement.
What do you think? Will the government successfully revive BSNL? Or is this profitability just a one-time event? Let us know your thoughts in the comments below!
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That’s all for today. I’m your host, Dev. See you in the next blog!