State-run telecom operator BSNL has reported a notable improvement in financial performance for the second quarter of fiscal year 2026. Its average revenue per user (ARPU) rose by approximately 12% sequentially, from ₹81 in Q1 to ₹91 in Q2 (July-September) of FY26.
In the same period, BSNL’s revenue stood at ₹5,347 crore, representing 93% of its quarterly target of ₹5,740 crore
Key Highlights
- ARPU jumped from ~₹81 in Q1 to ~₹91 in Q2, marking a ~12% sequential rise.
- Q2 revenue: ₹5,347 crore, achieving about 93% of the target.
- For the first half of FY26, total revenue was reported at ~₹11,134 crore.
- Improved performance in select circles: Some regions like Maharashtra, Kerala, UP (East), Andaman & Nicobar, and Jammu & Kashmir recorded ARPUs as high as ~₹214.
- Some under-performing circles remain: Regions such as Madhya Pradesh, Jharkhand and Kolkata were highlighted as having ARPUs around ~₹60, indicating wide variance.
- BSNL’s 4G rollout is credited as a key driver of the ARPU uplift.
Why It Matters
The ARPU metric is crucial for telecom operators, as it reflects how much revenue, on average, each customer is generating. An increase in ARPU can signal better monetisation of the subscriber base, improved service mix (e.g., higher value plans, data usage), and potentially better margin prospects.
For BSNL — which has long been under competitive pressure from private operators in India — the 12% uptick is a meaningful improvement and an indicator that the company’s turnaround plans may be gaining traction. The rollout of 4G services and upgrade plans to 5G are part of this repositioning.
However, BSNL’s ARPU of ₹91 still lags significantly behind its private peers (for e.g., Bharti Airtel and Reliance Jio) in India, suggesting there’s considerable room for improvement.
Challenges & Outlook
- Regional discrepancy: The wide gap between high-performing and low-performing circles means BSNL needs to standardise performance and improve weaker markets.
- Service quality and competition: With rising ARPU comes higher expectations for service quality; BSNL must continue to improve network, customer experience and operational efficiency.
- Profitability concerns: Though ARPU is rising, BSNL has faced losses and heavy capex; improved ARPU doesn’t automatically equate to profitability without cost and revenue discipline.
- Scaling 4G/5G rollout: The ARPU boost is tied in part to 4G rollout; next is the ramp-up to 5G, which will require investment and execution focus. mint
What to Watch
- Whether BSNL can maintain or further increase ARPU in Q3 and beyond
- Improvement in low-ARPU circles and narrowing of regional performance gaps
- Impact of 5G rollout and higher-value service offerings on ARPU and revenue
- Whether revenue growth targets (20% for FY26) are achieved given the improved metrics.
In summary, BSNL’s ARPU up 12% to ₹91 in Q2 FY26 marks a positive step in its turnaround journey. While still behind private rivals, the improved monetisation of customers and revenue traction are encouraging for stakeholders and signal that BSNL’s strategic initiatives are beginning to yield results.
