BSNL posts ₹280 crore Q4 profit, narrows annual losses; what’s behind the turnaround?

BSNL posted a profit after tax (PAT) of ₹280 crore in the fourth quarter of FY25, following a ₹262 crore profit in Q3, according to the Ministry of Communications. This is a stark reversal from the ₹849 crore loss reported in Q4 of FY24.

"For the first time in 18 years, back-to-back quarterly profits, net profits, not operating profit alone, not even the positive margin alone, but net profit on a quarterly basis for the second time running after 2007," Union Telecom Minister Jyotiraditya Scindia told reporters.

The public sector telecom company reduced its net loss by 58% to ₹2,247 crore in FY25, down from ₹5,370 crore in the previous fiscal.

The audited results were approved at the 243rd meeting of the BSNL Board.

Operational margin and EBITDA improve sharply

EBITDA for the year surged to ₹5,396 crore, more than doubling from ₹2,164 crore in FY24. EBITDA margins improved sharply to 23.01% from 10.15% a year ago.

Revenue growth across core segments

The company’s operating revenue rose 7.8% to ₹20,841 crore, while total income reached ₹23,427 crore, up 10% year-on-year. All major revenue segments showed growth: mobility revenues grew 6% to ₹7,499 crore, FTTH by 10% to ₹2,923 crore, and leased lines by 3.5% to ₹4,096 crore.

Asset monetisation contributed ₹1,120 crore in FY25, up 77% from the previous year, as the company nearly doubled its proceeds through this route.

Cost control, 4G/5G rollouts behind the turnaround

BSNL also demonstrated tighter cost control, bringing down total expenditure by 3% to ₹25,841 crore. Finance costs dropped 14% to ₹1,527 crore.

Capital expenditure hit a record high, with asset additions worth ₹26,022 crore, including ₹15,324 crore on equipment and towers and ₹10,698 crore on spectrum, primarily for 4G rollout and fibre expansion.

“The sharp turnaround is testimony to professional management, government support and relentless focus on both the top line and the bottom line. BSNL is not just being revived, but redefined,” said A. Robert J. Ravi, CMD, BSNL.

The company expects strong top-line growth and continued operational efficiency. However, higher depreciation and amortisation from recent spectrum and capex investments may weigh on near-term profitability. Over the medium to long term, BSNL projects robust gains, driven by 4G/5G rollouts, infrastructure upgrades and continued asset monetisation.

“With disciplined cost control and accelerated 4G/5G deployment, we are confident of sustaining this growth trajectory and delivering affordable, high-quality connectivity to every Indian,” Ravi said. “We will not be chasing profits as our end goal... profits will naturally follow as a byproduct of service excellence.”