BSNL Turns Profitable After 17 Years, EBITDA Doubles in Four Years

Bharat Sanchar Nigam Limited (BSNL) announced its financial results for the October-December quarter of the 2024-25 fiscal year (Q3FY25) on Friday, February 14, reporting a net profit of ₹262 crore. This marks the company's first return to profitability in nearly 17 years. The state-owned telecom provider turned profitable in the December quarter of FY25 for the first time since 2007 when it last recorded a quarterly net profit.

Telecom Minister Jyotiraditya Scindia hailed BSNL's performance as a "significant turning point" for the company, highlighting its strategic focus on expanding services and growing its subscriber base. He noted that BSNL has demonstrated notable progress, achieving approximately 14-18% growth in key service areas, including mobile connectivity, fibre-to-the-home (FTTH), and leased line offerings.

"Today is an important day for BSNL and for the journey of the telecom sector in India...BSNL has, in the third quarter of FY2024-25, for the first time in 17 years, posted a profit quarterly. The last time BSNL posted a quarterly profit was in the year 2007," said Scindia on BSNL's earnings.

BSNL saw a 15% increase in revenue from its mobility services, while its Fiber-to-the-Home (FTTH) segment recorded an 18% growth. Revenue from leased line services also rose by 14% compared to the same quarter in the previous fiscal year. The Q3FY25 report highlighted BSNL's "focus on innovation, network expansion, cost optimisation, and customer-centric service improvements".

"We certainly hope that this year will not just see an increase in revenues at the end of the fourth quarter for the full financial year, but will also (see BSNL) keep expenditure and costs under control and significantly reduce losses from the figures of last year," said Scindia.

"...This quarter's return to profitability is a significant turning point for BSNL as it now embarks on providing 4G services to its subscribers across India. Out of 100,000 towers, 75,000 have been installed, and about 60,000 have been commissioned. We hope that all 100,000 towers will be operational by June," said Scindia.

BSNL lowered its finance costs and overall expenses, resulting in a reduction of losses by more than ₹1,800 crore compared to the previous year. It also expects revenue growth to improve further, exceeding 20% by the end of the financial year.