BSNL’s Q2 net loss widens to ₹1,357 cr on a steep rise in depreciation, interest
State-owned Bharat Sanchar Nigam Ltd (BSNL) continued its loss run for the second consecutive quarter of this fiscal, after a brief return to profitability in the last two quarters of fiscal 2025.
BSNL reported net loss in September quarter ₹1,357 crore, wider ₹1,048 crore in the previous quarter and ₹1,241.7 crore was lost in the previous year quarter, according to the company’s financial statements dated November 14 to show.
BSNL’s high losses can be attributed to the increase in the company’s depreciation and amortization expenses and financing cost. Depreciation and amortization last quarter were as follows: ₹2,477 crore, 57% more than the previous year quarter. It was 14.5% more than the previous quarter.
The company’s revenue from operations in this quarter increased by 2.8% respectively and 6.6% annually. ₹5,166.7 crore was largely driven by the increase in revenues from mobile phone services after the company launched 4G services.
Scindia had said last month that BSNL had 92.3 million mobile subscribers as of the end of September. This would put it behind larger rivals Reliance Jio’s 506 million, Bharti Airtel (364 million) and Vodaone Idea (196.7 million).
Communications minister Jyotiraditya Scindia had flagged the increasing depreciation at a media briefing last month. “We (BSNL) may not see the profitability rate going forward as the company is incurring capital expenditure. ₹25,000 crore in FY25 and it will be close to that ₹2,500 crore non-cash hit due to depreciation,” Scindia said then.
BSNL has set a target of growing revenues by 20% in FY26. ₹27,500 crore. He earned an income of around ₹23,000 crore in FY25.
Mint It has reached out to BSNL and the department of telecommunications (DoT) for comments. The story will be updated accordingly.
Fees are activated
Employee bills, which accounted for a top 43% of the company’s operating income last year, now account for 37% of the company’s revenue. This was revealed last year with a change in the company’s practice to shift employee expenses to ‘Capital Work in Progress’ (CWIP).
In reply MintBSNL had clarified in its query in May that “it is a common practice in the telecommunications industry to avail associated overheads during periods of major network expansion”.
Whenever any company identifies a particular project of a capital nature, all expenses related to it are capitalized. Only after the project starts generating revenue will it move to the profit and loss statement (P&L) under depreciation.
Revenue from the company’s corporate services business fell 10% from the previous quarter. ₹1,321.7 crore. However, revenue from the business increased by 0.9% year-on-year.
The state-run telecom operator saw its average revenue per user (Arpu) increase by 12% ₹91 in July-September ₹Scindia said he had achieved a score of 81 in the previous quarter.
Arpu is a measure of a telecommunications company’s average earnings per customer over a given period, such as a month. The nationwide rollout of 4G service has led to higher revenues for BSNL and a steady increase in subscriber additions.
In the first half of the current fiscal year, the company’s revenue from operations increased by 10.4% ₹10,193 crore. The company’s losses narrowed ₹2,404.8 crore ₹2,952 crore.
BSNL, which has been in the testing phase for a long time, launched 4G services based on India-made technology with over 92,000 towers on September 26. The company serves more than 20 million 4G users across the country, with a total subscriber base of 91.7 million as of the end of August.
BSNL was back in the red with a net loss after posting profits for two consecutive quarters for the first time in 18 years. ₹1,049 crore in the June quarter. Net profit announced ₹280 crore in the March quarter and ₹262 crore in the December quarter.
