2 weeks ago
BSNL's Q1 loss widens to ₹1,280 crore as expenses outpace growth
BSNL is a big telephone and internet company that is owned by the government of India.
In the first three months of its new financial year, the company lost ₹1,280 crore, which is a very big amount of money.
It lost more money than it did in the same time last year because its expenses grew faster than the money it earned.
The company spent more on things like its network and employee salaries.
On the bright side, each customer is paying a little bit more on average than before, and the company is building many new 4G towers.
It even started testing its new 5G network in Delhi, which should make internet faster.
However, some tests show that BSNL's network is not working as well as other phone companies' networks.
Some experts think the increase in customer payments might be happening because fewer active users are using the network, not because the company is doing better.
BSNL also merged with another government company, which changed some of the numbers it reports.
The company hopes things will improve as it builds more of its network.
BSNL's consolidated net loss widened to ₹1,280 crore in Q1 FY27, up from ₹1,007 crore a year earlier, but narrowed from ₹1,419 crore in the previous quarter.
Total expenses rose 5.5% year-on-year to ₹7,242.5 crore, while revenue from operations grew 4.2% to ₹5,306 crore.
Results include restated FY26 financials reflecting the merger with Bharat Broadband Network Ltd, approved by the corporate affairs ministry in May.
BSNL's ARPU rose to about ₹102.7 in Q1 from ₹100 at the end of FY26; analysts questioned the earlier 42% ARPU jump given weak mobile revenue growth.
The company had installed 105,290 indigenous 4G sites by April-end and is rolling out 5G in Delhi, while TRAI drive tests show service quality issues persist.
BSNL's mobile subscriber base stood at 93 million at the end of June, up from 90.5 million a year earlier.
- Who
- State-owned telecom operator Bharat Sanchar Nigam Limited (BSNL), which was reviewed by communications minister Jyotiraditya Scindia.
- What
- BSNL reported a widening Q1 consolidated net loss of ₹1,280 crore as expenses outpaced modest revenue growth.
- Where
- India, including a 4G network expansion nationwide and a 5G rollout in Delhi.
- When
- The April-June quarter (Q1) of financial year 2026-27 (FY27); results published on the company's website on 14 August 2026.
- Why
- Because total expenses rose 5.5% year-on-year faster than revenue growth of 4.2%, driven by higher network, depreciation, and employee costs.
Government/Optimistic View
Analysts/Skeptical View
ARPU growth credibility
Government/Optimistic View
BSNL and communications minister Jyotiraditya Scindia say ARPU rose 42% to ₹101 in FY26 and to about ₹102.7 in Q1, signaling a growth phase driven by rising 4G data usage.
Analysts/Skeptical View
Analysts question the sharp ARPU increase because mobile revenue grew only 1% in FY26, suggesting the gain may be driven by a shrinking active subscriber base rather than stronger monetization.
Growth metrics vs. network quality
Government/Optimistic View
Leadership maintains that the three core verticals—Enterprise Business, Consumer Mobility and Consumer Fixed Access—continue to drive the company's growth, and BSNL is expanding 4G and rolling out 5G in Delhi.
Analysts/Skeptical View
TRAI drive test reports show BSNL's mobile network performance is weak compared with private operators and often below regulator-set quality-of-service benchmarks at most locations.
Key facts
- Consolidated net loss (Q1 FY27)
- ₹1,280 crore, up from ₹1,007 crore a year earlier; narrowed from ₹1,419 crore sequentially
- Revenue from operations
- ₹5,306 crore, up 4.2% YoY and 2% QoQ
- Total expenses
- ₹7,242.5 crore, up 5.5% YoY
- Employee costs
- ₹1,974.5 crore, up 1.8% YoY, about 37% of revenue
- ARPU
- Roughly ₹102.7 in Q1 FY27, up from ₹100 at FY26 close; FY26 ARPU rose 42% to ₹101
- Mobile subscriber base
- 93 million at end of June, up 2.5 million YoY
- 4G/5G rollout
- 105,290 indigenous 4G sites installed by April-end; 5G rollout underway in Delhi
- BBNL merger
- Corporate affairs ministry approved merger in May; Cabinet approved it in July 2022
- Business vertical growth (Q1)
- Consumer mobility ₹2,282 crore (+12% YoY), enterprise services ₹1,736 crore (+12% YoY), consumer fixed access ₹1,290 crore (-14.5% YoY)
Sources
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