Bharat Sanchar Nigam Limited has begun the 2026–27 financial year with a 10 per cent year-on-year increase in operational revenue, reflecting continued improvement in the public-sector telecom company’s commercial performance. BSNL provisionally recorded revenue from business operations of ₹4,418 crore during the April–June 2026 quarter, compared with ₹4,017 crore during the corresponding quarter of the previous financial year.
The increase of ₹401 crore was announced by Union Minister for Communications Jyotiraditya Scindia following a quarterly review of the company’s performance on July 13, 2026. Growth in BSNL’s enterprise-services and consumer-mobility businesses contributed to the improvement, while revenue from consumer fixed-access services remained broadly stable.
The results represent provisional operational figures and should therefore be viewed as an indicator of the company’s business momentum rather than its final audited profitability for the quarter. Revenue growth provides a positive foundation, while BSNL’s eventual financial outcome will also depend on expenditure, network investment, depreciation, finance costs and other accounting factors.
Average Revenue per User Improves
BSNL’s average revenue per user, commonly known as ARPU, provisionally increased from ₹100 to ₹102.70 during the quarter. ARPU measures the average monthly revenue generated from each subscriber and is one of the most closely watched indicators in the telecommunications industry.
The improvement suggests that BSNL is gradually generating greater value from its subscriber base through mobile data, voice services, tariff plans and other connectivity products. The increase remains moderate, yet it strengthens the company’s ability to finance network expansion and service improvements when combined with a large customer base.
BSNL had already reported a significant improvement in ARPU during the previous financial year. At its annual strategic review in April 2026, the company reported that ARPU had risen to ₹101 in FY 2025–26 from ₹71 in the preceding year, representing year-on-year growth of approximately 42 per cent.
The first-quarter figure of ₹102.70 indicates that the company has continued to build upon that progress. Sustaining this trend will depend on network quality, data consumption, customer retention, competitive pricing and the ability to attract subscribers to higher-value services.
Enterprise Business Emerges as a Major Growth Engine
BSNL’s enterprise business was among the principal contributors to first-quarter revenue growth. This division provides connectivity and digital infrastructure to government departments, public institutions, banks, businesses and large organisations.
Its services include leased-line connectivity, internet access, multiprotocol label switching networks, data-centre services, cloud connectivity, managed networks, bulk communication services and machine-to-machine solutions.
The enterprise segment had already emerged as BSNL’s best-performing business vertical during FY 2025–26, registering a 15 per cent increase in revenue from services. The Odisha telecom circle recorded particularly strong enterprise growth of 68 per cent during the year.
Enterprise services can provide BSNL with stable, recurring revenue because institutional customers generally require long-term connectivity, network security and service-level commitments. The company’s nationwide fibre infrastructure and presence across rural, remote and strategically important regions give it a distinctive role in serving public institutions and commercial organisations.
Growing demand for cloud services, secure data connectivity, digital governance, industrial automation and geographically distributed business networks could create further opportunities for this division.
Consumer Mobility Supports Quarterly Expansion
BSNL’s consumer-mobility business also recorded growth during the first quarter. This segment includes mobile voice, data and related services supplied to individual subscribers.
The performance reflects the benefits of BSNL’s transition from a predominantly 3G network to a nationwide 4G service provider. Faster mobile connectivity allows the company to offer a more competitive range of data plans, improve user experience and generate higher revenue from internet consumption.
The company’s network modernisation has gained scale through the deployment of an indigenous 4G technology stack. By May 2026, BSNL had launched indigenous 4G technology across approximately 100,000 towers within a year. The network was developed through an Indian technology ecosystem involving the Centre for Development of Telematics, Tata Consultancy Services and Tejas Networks.
The system has also been designed for future conversion to 5G, allowing software and equipment upgrades as the company moves to the next generation of mobile services.
India’s development of an end-to-end domestic telecom stack places the country among a small group of nations possessing such technological capability. For BSNL, it reduces dependence on imported core network systems while creating a platform that can be adapted to Indian operating conditions.
Fixed-Access Revenue Remains Stable
Consumer fixed access, which includes landline and home-broadband services, remained broadly flat during the April–June quarter.
This segment operates in a rapidly changing market. Traditional landline usage has declined as mobile communication has expanded, while demand for fibre-based broadband has increased due to streaming, remote work, online education, digital payments and connected-home services.
BSNL’s Bharat Fiber service gives the company an opportunity to convert its extensive fixed-line and fibre infrastructure into high-speed broadband revenue. The company offers fibre-to-the-home connectivity alongside voice and internet services across urban centres, smaller towns and rural areas.
During FY 2024–25, BSNL’s fibre-to-the-home revenue increased by 10 per cent to ₹2,923 crore. Its leased-line and enterprise revenue reached ₹4,096 crore, representing growth of 3.5 per cent during that financial year.
The stable performance in fixed access during the latest quarter indicates that greater customer acquisition, improved installation timelines, reliable speeds and bundled digital services could become important priorities for the company.
A Turnaround Built Through Network Investment
BSNL’s first-quarter growth forms part of a wider effort to rebuild the company’s finances and technological capabilities.
During FY 2024–25, BSNL’s operating revenue increased by 7.8 per cent to ₹20,841 crore, while total income rose by 10 per cent to ₹23,427 crore. The company also reduced its annual loss by 58 per cent, from ₹5,370 crore in FY 2023–24 to ₹2,247 crore in FY 2024–25.
BSNL reported net profits of ₹262 crore in the October–December 2024 quarter and ₹280 crore in the January–March 2025 quarter. These were its first consecutive quarterly net profits in nearly two decades.
The improvement was supported by growth in core businesses, cost control and asset monetisation. Earnings before interest, taxes, depreciation and amortisation increased to ₹5,396 crore in FY 2024–25 from ₹2,164 crore in the previous year, while the EBITDA margin rose to 23.01 per cent.
The company also undertook record capital investment during the year. Asset additions reached ₹26,022 crore, including expenditure on telecom equipment, towers and spectrum. Much of this investment supported the 4G rollout and expansion of fibre infrastructure.
These investments increase depreciation and other near-term costs, while creating network capacity that can generate revenue over a longer period. The first-quarter operational growth suggests that the new infrastructure has begun contributing to BSNL’s commercial performance.
Indigenous 4G Strengthens Digital Self-Reliance
BSNL’s network expansion carries significance beyond the company’s financial results. The domestic 4G stack represents a major step in India’s effort to develop sovereign capability in critical telecommunications infrastructure.
The Radio Access Network has been supplied by Tejas Networks, the core network was developed by C-DOT and system integration was undertaken by TCS. This structure connects public research, Indian manufacturing and private-sector technology expertise within a single nationwide telecom project.
The network’s software-driven and cloud-based architecture allows upgrades and modifications to be developed within India. It can also support future exports of Indian telecom systems to countries seeking affordable alternatives for network deployment.
For BSNL, the indigenous platform provides greater control over upgrades, cybersecurity, maintenance and long-term technological development. The company can work directly with domestic suppliers to address service requirements and improve network performance.
The project also supports Indian manufacturing of radios, antennas, network equipment, servers and associated telecom components. A sustained BSNL expansion could therefore create demand across a much wider electronics and communications supply chain.
Connecting Rural and Remote India
BSNL has a public-service role alongside its commercial objectives. Its network extends into rural districts, islands, mountainous terrain, border regions and areas where the commercial viability of telecom infrastructure can be limited.
The government stated in March 2026 that BSNL’s subscriber base had expanded from 8.55 crore to 9.27 crore, reflecting increased adoption during its network revival. The company had also rolled out around 100,000 4G towers, with further expansion planned.
Separate connectivity programmes have targeted villages affected by difficult terrain, security challenges and limited commercial demand. By May 2026, around 25,000 towers had been installed to serve previously underserved villages, with another 10,000 under development.
Reliable communication in such areas supports emergency services, digital banking, online education, telemedicine, agricultural information and government-service delivery. It also improves communication during natural disasters and strengthens connectivity in strategically important regions.
Revenue growth can help BSNL maintain this wider national role by providing additional resources for operations, maintenance and further investment.
Customer Experience Remains Central
BSNL’s commercial recovery will ultimately depend on service quality. Network coverage, call reliability, mobile-data speeds, fault repair, customer support and recharge convenience strongly influence subscriber retention.
The company’s 2026–27 strategic priorities include closer monitoring of quality-of-service indicators, subscriber growth, ARPU and revenue performance. Officials have also emphasised accountability at the telecom-circle level and the adoption of practices followed by better-performing regions.
The nationwide 4G rollout creates the technical foundation for improvement, while effective operation requires consistent tower uptime, adequate backhaul capacity and rapid resolution of local network problems.
BSNL’s pricing remains an important competitive advantage, particularly for customers seeking affordable voice and data plans. Combining accessible tariffs with dependable 4G coverage could help the company attract users in both rural and urban markets.
Preparing the Ground for 5G
BSNL’s indigenous 4G equipment is designed to support an upgrade to 5G. The government has indicated that the company will introduce 5G services after stabilising its 4G network.
A phased approach allows BSNL to improve its existing network, build mobile-data traffic and strengthen its revenue base before undertaking the next stage of capital investment.
The company could use 5G for consumer mobile broadband as well as enterprise applications such as private networks, smart manufacturing, logistics, healthcare connectivity, public safety and Internet of Things services.
Its experience with an Indian-developed 4G platform also creates a technological pathway for domestic 5G development. The transition could strengthen India’s position as a producer of telecom equipment and network software rather than solely a major consumer market.
A Positive Beginning to the Financial Year
BSNL’s provisional 10 per cent increase in operational revenue provides an encouraging beginning to FY 2026–27. The rise from ₹4,017 crore to ₹4,418 crore shows that enterprise connectivity and mobile services are generating stronger business activity, while ARPU has continued to improve.
The company’s future performance will be shaped by its ability to convert the nationwide 4G rollout into sustained subscriber growth, higher data usage and dependable customer service. Greater momentum in fibre broadband and fixed access could add another source of expansion.
BSNL’s recovery also carries wider national importance. Its network supports rural connectivity, strategic communication, competition in the telecom market and India’s emergence as a developer of indigenous mobile-network technology.
The first-quarter figures therefore represent more than a rise in revenue. They indicate that years of public investment, network modernisation and organisational restructuring are beginning to produce stronger operational results. Continued execution across service quality, enterprise solutions, fibre connectivity and mobile expansion will determine whether BSNL can transform this momentum into durable financial strength.
References
- Jyotiraditya M. Scindia, Union Minister for Communications. “BSNL Q1 FY 2026–27 Business and Operational Review.” 13 July 2026.
https://x.com/JM_Scindia/status/2076673525390430518 - Business Standard. “BSNL Posts 10% Growth in Q1 FY27 Operational Revenue to ₹4,418 Crore.” 13 July 2026.
https://www.business-standard.com/industry/news/bsnl-posts-10-growth-in-q1-fy27-operational-revenue-to-4-418-crore-126071301226_1.html - NDTV Profit. “BSNL Posts 10% Jump in Revenue from Operations for Q1 FY27; ARPU Increases to ₹102.70 from ₹100.” 13 July 2026.
https://www.ndtvprofit.com/markets/bsnl-posts-10-jump-in-revenue-from-operations-for-q1-fy27-arpu-increases-to-rs-102-7-from-rs-100-11765728 - The Economic Times. “BSNL Unaudited Operational Revenue Up by 10% to ₹4,418 Crore in Q1: Jyotiraditya Scindia.” 13 July 2026.
https://economictimes.indiatimes.com/industry/telecom/telecom-news/bsnl-unaudited-operational-revenue-up-by-10-pc-to-rs-4418-crore-in-q1-jyotiraditya-scindia/articleshow/132367473.cms - Press Information Bureau, Government of India. “BSNL Registers Profit of ₹280 Crore in Q4; FY 2024–25 Shows Turnaround.” Ministry of Communications, 27 May 2025.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2131702 - Press Information Bureau, Government of India. “Union Minister Jyotiraditya M. Scindia Highlights Indigenous 4G Deployment and BSNL Revival in Lok Sabha.” Ministry of Communications, 18 March 2026.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2241972 - Bharat Sanchar Nigam Limited. Official corporate website.
https://www.bsnl.co.in/
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