BSNL Losses Widen in Q4 FY26, Things Do Not Look Good

Bharat Sanchar Nigam Limited (BSNL) has posted a net loss of Rs 1,269 crore in Q4 FY26. This not only widened QoQ, but on a YoY basis, this looks even worse. Because a year back, during the same quarter, this was Rs 280 crore in profits. Despite launching 4G in various parts of India, things are not looking good for BSNL.

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Key Highlights

  • Bharat Sanchar Nigam Limited reported a net loss of ₹1,269 crore in Q4 FY26, compared to a profit of ₹280 crore in the same quarter last year.
  • For the full FY26, BSNL's net loss widened to ₹4,738 crore, significantly higher than the ₹2,247 crore loss reported in FY25.
  • Revenue from operations grew only 1.7% year-on-year to ₹21,199 crore, falling short of the government's target of ₹28,476 crore.
  • Higher network operating expenses, employee costs, depreciation, and finance charges weighed heavily on profitability.
  • Despite expanding its 4G network and offering promotional plans, BSNL continues to face challenges in subscriber retention and financial performance.

The state-run telecom operator saw a higher network operating expense, finance charges, depreciation, and employee costs during the quarter, and the year. Overall, in FY26, BSNL posted a net loss of Rs 4,738 crore, which is more than Rs 2,247 crore loss reported last year. The revenue from operations also increased just 1.7% to Rs 21,199 crore. This is not enough growth to compete with the other players.

The government had set a target of Rs 28,476 crore for revenue from operations. However, the actual numbers are way less. The government had said that BSNL’s ARPU (average revenue per user) rose 42% to Rs 101 in FY26, but the numbers posted by BSNL seems to be in contrast with this. Things are definitely not looking good for the telecom operator.

If the subscriber loss continues, even after offering lower priced services, it shows that the network experience on a ground level is still too poor for most consumers in the country. BSNL has been running many promotional offers, including the Re 1 plan offer which was aimed to adding new subscribers aggressively. With new users, the telco would have eventually made more money if they liked the services. However, that does not seem to be the case.

Even after relief packages amounting to more than Rs 1 lakh crore combined over the last few years, BSNL has not been able to justify the support through its performance. The government still has hopes that the telecom operator will make a comeback with its high-speed indigenous 4G networks.

BSNL has not been able to perform, even after the investments and support. The telecom company is now considering deploying more 4G sites in India. The tariffs are still lower than the competition, but there have been indirect hikes to support ARPU growth. We are not sure if BSNL would be ever able to catch up with the competition in terms of subscriber numbers, ARPU, or in any other segment. However, if the telco is able to perform a little better, then the consumers will get one more option to choose from which would go a long way.

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FAQs

What was BSNL's net loss in Q4 FY26?

BSNL reported a net loss of ₹1,269 crore during the fourth quarter of FY26.

How did BSNL perform in the full FY26 financial year?

The company posted a total net loss of ₹4,738 crore for FY26, compared to a loss of ₹2,247 crore in FY25.

Why did BSNL's losses increase?

The increase was driven by higher operating expenses, employee costs, depreciation charges, and finance-related expenses.

Did BSNL's revenue grow in FY26?

Yes, revenue from operations increased by 1.7% to ₹21,199 crore, although it remained well below the government's target.

What is BSNL doing to improve its position?

BSNL is continuing its 4G network rollout, planning additional tower deployments, and offering promotional plans to attract and retain subscribers.