BSNL Revival: Revenues Increase By 10%; Losses Reduce To Rs 2951 Crore


Mohul Ghosh

Mohul Ghosh

Nov 26, 2024


BSNL, India’s state-owned telecom giant, continues its journey of transformation under the government’s ambitious revival package. The company recently announced its financial performance for the first half of FY25, revealing a mix of progress and challenges. While revenue has grown significantly, challenges like delayed 4G deployment persist, affecting key business areas.

BSNL Revival: Revenues Increase By 10%; Losses Reduce To Rs 2951 Crore

Key Highlights of H1FY25 Performance

Revenue Growth: A Positive Shift

BSNL reported a 10.4% year-on-year growth in revenue, reaching ₹9,235 crore during April-September 2024. This growth was fueled by:

  • Enterprise Business: Achieved a 12% YoY increase, contributing ₹2,291 crore.
  • Consumer Mobility: Generated ₹3,473.5 crore, showing modest growth despite limited advancements in mobile services.

The surge highlights BSNL’s ability to tap into enterprise solutions and fixed access services, aligning with broader industry trends.

Operating Profitability Improves

The company’s EBITDA grew by 57% YoY to ₹904 crore, underscoring improved operational efficiency. This milestone reflects the impact of strategic interventions, although higher expenses remain a concern.


Persistent Challenges: Employee Costs and 4G Deployment

Rising Operating Costs

Total expenses grew by 4.5% YoY to ₹12,890 crore, with employee costs accounting for a significant 31% of total expenses. At ₹4,042 crore, these costs rose by 5.7% YoY, posing a hurdle to achieving profitability.

4G Service Rollout Delays

Despite strong potential, BSNL continues to lag behind private players in offering 4G services. Cellular services revenue fell by 6.6% YoY to ₹2,522 crore, primarily due to:

  • Limited pan-India 4G network availability.
  • Reliance on tariff hikes by private competitors to gain traction in Q2FY25.

Government Support: A Key Pillar of Revival

The ₹3.2-lakh-crore revival package remains a lifeline for BSNL. In H1FY25, the company received ₹3,000 crore from the government to fund capital expenditure and address adjusted gross revenue (AGR) dues. Such financial backing not only aids operational stability but also underscores the government’s commitment to BSNL’s resurgence.


Looking Ahead: Ambitious Revenue Targets

BSNL has set ambitious goals for the coming years, targeting:

  • ₹24,428 crore in FY25.
  • ₹28,476 crore in FY26.
  • Scaling to ₹35,960 crore by FY28.

Achieving these benchmarks will require accelerated 4G deployment, competitive pricing strategies, and enhanced service offerings to retain and expand its customer base.


Conclusion: Progress Amidst Challenges

BSNL’s financial performance in H1FY25 reflects a gradual shift toward recovery. Revenue growth and improved operating profits signal progress, but challenges like high employee costs and delayed 4G services need urgent attention. With robust government support and strategic focus, BSNL can strengthen its position and capitalize on emerging opportunities in India’s telecom sector.

The coming quarters will be crucial in determining whether BSNL can fully harness its potential and meet its ambitious targets.

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Mohul Ghosh
Mohul Ghosh
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