NEW DELHI: State-owned Bharat Sanchar Nigam Ltd (BSNL) reported a net loss of ₹1,269 crore in the fourth quarter of FY26, compared with a net profit of ₹280 crore a year earlier, when accounting changes had boosted earnings.
The wider quarterly loss was driven by higher network operating expenses, employee costs, finance charges and depreciation, according to the company's FY26 financial statements dated 22 May that were published on the BSNL website earlier this week.
The weak Q4 performance pushed BSNL's full-year loss to ₹4,738 crore in FY26, more than double the ₹2,247 crore reported a year earlier. Revenue from operations rose just 1.7% to ₹21,199 crore, significantly below the ₹28,476 crore target set under the memorandum of understanding between the Department of Telecommunications (DoT) and the telecom operator.
The muted revenue growth also contrasts with BSNL's claim that average revenue per user (Arpu) jumped 42% to ₹101 in FY26, according to a communications ministry release dated 23 April. Mint reported on 30 April that while BSNL maintained it was entering a growth phase driven by rising 4G data usage, analysts had questioned the sharp increase in Arpu.
The discrepancy is significant because mobile Arpu—a key measure of revenue health—is calculated by dividing mobile-services revenue by the number of active subscribers. It can rise as customers spend more, because the subscriber mix shifts towards higher-paying users, or because the number of active subscribers declines.
BSNL's cellular business, which accounts for about 26% of its revenue, posted only 1% growth in FY26, with revenue rising to ₹5,571 crore. Analysts said the sharp rise in Arpu despite weak revenue growth suggests the increase may have been driven largely by a shrinking active subscriber base.
According to data from the Telecom Regulatory Authority of India (Trai), BSNL's total mobile subscriber base stood at 92.9 million at the end of March, up by 1.8 million users from 91.06 million in March 2025. However, its active subscriber base has been declining steadily and stood at 52.7 million at the end of March, according to a 29 May note by brokerage IIFL Capital citing Trai data.
Emails sent to BSNL and DoT on Tuesday seeking comment did not receive a response by press time.
BSNL's revenue from operations fell 14% year-on-year to ₹5,721 crore in the March quarter, hurt by lower revenue across its three key segments—consumer fixed access, consumer mobility and enterprise services.
During a review meeting with communications minister Jyotiraditya Scindia in April, concerns were raised about the stagnation of BSNL's core business revenue in FY26. Despite the lacklustre performance, the company has set a target of raising Arpu to ₹150 in FY27.
"We're entering a growth phase where the results of our capex investments, backed by government support, are becoming visible," BSNL chairman and managing director Robert Ravi told Mint in April. “When customers experience reliable, high-quality connectivity, they return to BSNL and increase their usage. We're seeing early indicators of this trend.”
Ravi added that accelerating 4G adoption and rising data consumption would help the company achieve its target.
In a 25 May statement, minister of state for communications Chandra Sekhar Pemmasani said, “We approached the revival with systematic rigour and private-sector discipline. The results are now visible like stronger finances, indigenous technology, and connectivity reaching India's remotest corners.”
“Ebitda has jumped dramatically from just ₹50 crore to nearly ₹7,000 crore, reflecting improved operational efficiency and a clear path to profitability,” Pemmasani added.
BSNL's FY26 financial statements also drew a qualified opinion from independent auditor V.K. Jindal & Co, which said the company's reported loss may be understated because of several accounting irregularities. The auditor identified errors in the ALTTC and Tamil Nadu circles that together understated the reported loss by about ₹98 crore and flagged a ₹248 crore overstatement of trade receivables.
The auditors also pointed to governance lapses, including the absence of a mandatory woman director and an inadequate number of independent directors on the company's board.
