BSNL FY26 Loss More Than Doubles to ₹4,738 Crore; Misses Revenue Target by Over ₹7,000 Crore – Indian PSU
Bharat Sanchar Nigam Limited (BSNL) has reported a net loss of ₹4,738 crore for FY2025-26, more than double the ₹2,247 crore loss recorded in FY2024-25, as a weak fourth quarter erased gains made during the year and exposed persistent financial challenges facing the state-owned telecom operator.
According to the company’s latest financial results, BSNL posted a net loss of ₹1,269 crore in the January-March quarter (Q4 FY26), compared with a net profit of ₹280 crore in the corresponding quarter of the previous fiscal. The sharp deterioration in quarterly performance significantly impacted the company’s annual financial outcome.
BSNL’s revenue from operations increased marginally by 1.7% year-on-year to ₹21,199 crore in FY26, but the figure remained substantially below the government-set target of ₹28,476 crore, highlighting the challenges in achieving sustainable revenue growth despite ongoing network expansion and modernization initiatives.
Q4 Performance Raises Concerns
The telecom PSU’s fourth-quarter results reflected mounting operational pressures. Revenue from operations during Q4 FY26 declined by 14% year-on-year to ₹5,721 crore, while higher expenses further weighed on profitability.
Industry analysts attribute the widening losses to a combination of factors, including:
- Increased network operating expenses
- Higher employee costs
- Rising finance charges
- Increased depreciation linked to the nationwide 4G rollout and network expansion programme
The significant depreciation burden from newly deployed telecom infrastructure has emerged as a major factor impacting BSNL’s bottom line even as the company continues investing heavily in indigenous 4G technology.
Contrasting Narratives
The latest results present a contrast to the optimism expressed by the Ministry of Communications earlier this year. In April 2026, Union Communications Minister Jyotiraditya M. Scindia had described BSNL’s performance as “transformative,” highlighting improvements in operational metrics, subscriber growth and average revenue per user (ARPU), which rose to ₹101 in FY26 from ₹71 in the previous year.
The Ministry had also emphasized BSNL’s successful transition from a 3G operator to a nationwide 4G service provider powered by indigenous technology, positioning India among a select group of countries possessing end-to-end telecom stack capabilities.
Revenue Growth Falls Short of Expectations
While BSNL’s annual revenue growth remained positive, the pace was significantly lower than expectations and targets. The telecom operator had reported strong performance during the first nine months of FY26, with revenue and EBITDA showing substantial improvement. However, the final quarter reversed much of that momentum.
The weak revenue growth in the cellular business, coupled with rising costs associated with network expansion, continues to pose a challenge for the PSU’s turnaround strategy.
Road Ahead
BSNL management is expected to focus on improving operational efficiency, expanding its 4G subscriber base, enhancing customer experience and monetizing its network investments in FY27. The successful commercial exploitation of the indigenous 4G network and planned 5G deployment will be crucial in determining whether the telecom PSU can reverse its loss-making trajectory in the coming years.
