BSNL posts net profit of ₹280 crore in Q4FY25, reduces loss

State-controlled Bharat Sanchar Nigam Limited (BSNL) on Tuesday posted a profit after tax (PAT) of ₹280 crore in Q4FY25, up from ₹262 crore in Q3FY25, boosted by its nationwide roll-out of commercial fourth-generation (4G) services and 5G Network-as-a-Service (NaaS) initiatives.

BSNL had posted a net loss of ₹849 crore in the fiscal fourth quarter that ended March 31, 2024.

For the entire FY25, BSNL’s loss reduced by 58% to ₹2,247 crore, compared to a loss of ₹5,370 crore in FY24.

‘The outlook for the coming year will continue to show strong top-line revenue growth alongside a steady decline in operating costs—both critical to sustained profitability,’ the telecom PSU said in its earnings statement.

However, it cautioned that in the near term, higher depreciation and amortisation arising from recent spectrum acquisitions and heavy capital expenditure (capex) arising from further 4G and 5G network investments, and upgradation of core infrastructure and aging backhaul fibres, will weigh on quarterly results despite “solid fundamentals”.

‘Although profit after tax may be subdued next fiscal year because of the sizeable capex and spectrum infusion, these investments are expected to spur accelerated growth and profitability thereafter,’ BSNL said, adding that the ongoing asset monetisation efforts will generate further funds that can be reinvested to further strengthen the company’s capital program.

BSNL almost doubled its asset monetisation in FY25, as per the statement. Its revenue from asset monetisation stood at ₹1,120 crore, an increase of 77% year-on-year.

BSNL’s operating income increased by 7.8% year-on-year to ₹20,841 crore in FY25, while the total income surged by 10% year-on-year to ₹23,427 crore.

The growth from all core revenue segments increased when compared to the last fiscal year. The public sector telecom carrier’s mobility revenue in FY25 was up by 6% year-on-year to ₹7,499 crore, fibre-to-the-home (FTTH) revenue grew by 10% year-on-year to ₹2,923 crore, and leased lines (including enterprise) revenue grew by 3.5% year-on-year to ₹4,096 crore.

BSNL’s earnings before interest, taxes, depreciation and amortisation (Ebitda) grew from ₹2,164 crore in FY24 to ₹5,396 crore in FY25. The telco’s 27 telecom circles turned Ebitda-positive in FY25, compared to 17 circles in FY24

‘27 circles turned EBITDA-positive in FY25 (only 17 circles last year – FY24). 10 circles turned PAT-positive in FY-25 (only 3 circles last year-FY-24),’ BSNL said.

BSNL added assets worth ₹26,022 crore in FY25, comprising ₹15,324 crore worth of equipment/towers, and others, and ₹10,698 crore of spectrum, the larges in the company’s history, mainline led by 4G rollout and fibre footprint 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 Robert J Ravi, CMD, BSNL.

‘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. We will not be chasing profits as our end goal,’ Ravi added.