BSNL slips deeper into loss in Q4FY26 as revenue falls

NEW DELHI: State-owned Bharat Sanchar Nigam Ltd (BSNL) reports net loss ₹1,269 crore in the fourth quarter of FY26 compared to net profit ₹280 crore a year ago when accounting changes boosted earnings.

The larger quarterly loss was due to higher network operating expenses, employee costs, finance charges and depreciation, according to the company’s FY26 financial statements dated May 22, published on the BSNL website earlier this week.

Weak fourth quarter performance hurts BSNL’s full year loss ₹4,738 crore in FY26, more than double this figure ₹2,247 crore was reported a year ago. Revenue from operations increased by only 1.7% ₹21,199 crore, significantly below ₹A target of 28,476 crore has been set under the memorandum of understanding between the Department of Telecommunications (DoT) and the telecom operator.

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The slowing revenue growth also contradicts BSNL’s claim that average revenue per user (Arpu) has increased by 42%. ₹101 in FY26, according to the communications ministry’s statement dated April 23. Mint On April 30, BSNL reported that while it had argued that it had entered a growth phase due to rising 4G data usage, analysts had questioned the sharp rise in Arpu.

This discrepancy is important because mobile Arpu, a key measure of revenue health, is calculated by dividing mobile service revenue by the number of active subscribers. This figure may increase as customers spend more due to a shift in the subscriber mix towards higher paying users or a decrease in the number of active subscribers.

The cellular business unit, which accounts for around 26% of BSNL’s revenue, registered only 1% growth in FY26, with revenue rising to 1,000,000. ₹5,571 crore. Analysts said the sharp increase in Arpu despite weak revenue growth indicates that this increase may have been largely due to the contraction in the active subscriber base.

BSNL’s total mobile subscriber base reached 92.9 million at the end of March, an increase of 1.8 million users from 91.06 million in March 2025, according to data from the Telecom Regulatory Authority of India (Trai). However, the active subscriber base has been declining steadily and stood at 52.7 million at the end of March, according to brokerage IIFL Capital’s May 29 note citing Trai data.

Emails sent to BSNL and DoT seeking comment on Tuesday did not receive a response by press time.

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BSNL’s revenue from operations fell 14% YoY ₹5,721 crore in the March quarter, hurt by lower revenue across three key segments – consumer fixed access, consumer mobility and enterprise services.

In the review meeting with communications minister Jyotiraditya Scindia in April, concerns were raised over the stagnation of BSNL’s core business revenue in FY26. Despite its poor performance, the company set a goal to take Arpu to the top level. ₹150 in FY27.

“We are entering a phase of growth where the results of our capital investments, backed by government support, are becoming visible,” said BSNL chairman and managing director Robert Ravi. Mint In April. “When customers experience reliable, high-quality connectivity, they return to BSNL and increase their usage. We are seeing early indicators of this trend.”

Ravi added that accelerating 4G adoption and increasing data consumption will help the company achieve its goal.

“We have approached the revival with systematic rigor and private sector discipline. The results can now be seen in the form of stronger finance, indigenous technology and connectivity reaching India’s remotest corners,” minister of state for communications Chandra Sekhar Pemmasani said in a statement on May 25.

“Ebitda jumps dramatically ₹Almost 50 crore ₹7,000 crore, reflecting improved operational efficiency and a clear path to profitability,” Pemmasani added.

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BSNL’s FY26 financial statements also received qualified opinion from independent auditor VK Jindal & Co; this opinion said the company’s reported loss may have been understated due to various accounting irregularities. The auditor found errors in the ALTTC and Tamil Nadu circles that approximately underestimated the reported loss. ₹98 crore and marked ₹Over-declaration of trade receivables by 248 crore.

Auditors also noted governance flaws, such as the company’s lack of a mandatory female director on its board and an insufficient number of independent directors.