BSNL Reports ₹262 Crore Profit in Q3 – First Time in 17 Years

After nearly two decades of financial struggles, Bharat Sanchar Nigam Limited (BSNL) has achieved a significant milestone by reporting a ₹262 crore net profit in Q3 FY2024-25. This marks the first time in 17 years that the state-owned telecom operator has recorded a profitable quarter.

The turnaround is attributed to cost-cutting measures, an expanding subscriber base, and strategic improvements in service offerings. By focusing on nationwide 4G expansion and enhanced digital services, BSNL is positioning itself for long-term stability in India’s competitive telecom sector.

"For the first time since 2007, #BSNL is back in profit, reporting an operating profit of ₹262 crore in the October–December 2024 quarter," BSNL India tweeted.

Union Minister for Communications Jyotiraditya Scindia called it a "significant turning point", crediting the turnaround to service expansion, cost-cutting, and a growing subscriber base.

BSNL Q3 FY2024-25 Financial Highlights

BSNL’s financial results for December 2024 reflect strong improvements across multiple revenue streams:

• Net Profit: ₹262 crore – First profit in 17 years
• EBITDA: ₹2,100 crore – Doubled over the last four years
• Revenue Growth: 14-18% increase in mobility, FTTH, and leased line services
• Subscriber Base: Grew from 8.4 crore in June to 9 crore by December
• Cost Reduction: Losses reduced by over ₹1,800 crore compared to last year

The combination of higher revenues and lower expenses has been the key driver behind BSNL’s improved financial health.

BSNL Q3 FY2024 Performance Overview

BSNL's financial performance for the December quarter of FY24 reflects strong improvements across various parameters. The company posted a net profit of ₹262 crore, marking a historic return to profitability. One of the key contributors to this growth is the steady rise in revenue, with a 14-18% increase in earnings from mobility, Fiber-to-the-Home (FTTH), and leased line services compared to the same period last year.

Additionally, BSNL’s subscriber base grew significantly, rising from 8.4 crore in June 2024 to 9 crore by December 2024. This expansion has strengthened its market presence and boosted revenue generation. Furthermore, the company has successfully cut down losses by ₹1,800 crore compared to the previous year by reducing finance costs and overall expenditure.

Another major achievement for BSNL is the growth in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which has doubled over the last four years to reach ₹2,100 crore in FY24. This reflects improved financial efficiency and better operational management, contributing to the overall profitability of the company.

What Factors Are Driving BSNL’s Revival?

Government Support & Cost-Cutting Measures

The Indian government played a crucial role in BSNL’s financial recovery by implementing revival plans aimed at reducing operational expenses and optimizing resource allocation. The company also made strategic efforts to reduce finance costs, which significantly contributed to profitability.

Service Expansion & Increased Subscriber Base

BSNL’s focus on expanding its telecom services has led to a noticeable rise in revenue. The company reported a 14-18% year-on-year growth in mobility, FTTH, and leased line services, highlighting a growing demand for its offerings. The increase in subscribers from 8.4 crore to 9 crore further strengthened its market position and improved revenue collection.

Technological Advancements & 4G Rollout

BSNL is actively working on nationwide 4G expansion, with 75,000 towers already installed and 60,000 commissioned. The company aims to make its entire 4G network operational by June 2025. Additionally, new offerings such as National WiFi Roaming, BiTV (free entertainment for mobile users), and India’s first private 5G connectivity for mining have contributed to its growing customer base and enhanced service quality.

Can BSNL Sustain Profitability in the Long Run?

BSNL’s return to profit is a major achievement, but sustaining this momentum in a highly competitive telecom industry remains a challenge. The company must continue investing in network expansion, service innovation, and customer satisfaction to compete with private giants like Jio and Airtel. Additionally, the successful implementation of 5G technology in the future will be critical for long-term growth.

With continued government support and a strong focus on operational efficiency, BSNL is on track to strengthen its position in the Indian telecom market.

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BSNL’s Q3 results mark a significant turning point in its financial journey. After 17 years of losses, the company has successfully reversed its fortunes by implementing cost-cutting measures, expanding services, and improving operational efficiency. As it moves towards a nationwide 4G rollout and prepares for future 5G adoption, BSNL is set to rebuild its presence as a key player in India’s telecom sector.

[Disclaimer: The information provided in this article is based on publicly available financial reports and government statements. Readers are advised to verify details before making financial decisions.]