State-run telecom operator BSNL reported a net loss of ₹1,049 crore in Q1 FY26, marking a sharp reversal after recording two consecutive quarterly profits—₹280 crore in March and ₹262 crore in December of FY25. Mint
Revenue Collapse and Cost Pressures
- Revenue from operations fell 24% quarter-on-quarter to ₹5,029.6 crore, impacting all verticals including consumer mobility, enterprise, and fixed access.
- Total expenses decreased 9.4% sequentially to ₹6,840 crore, except for employee costs which surged 39% quarter-on-quarter to ₹1,940 crore, accounting for 38.6% of revenue.
Depreciation Woes and Investments
- Depreciation and amortization (D&A) expenses rose 43% year-on-year to ₹1,940 crore, reflecting heavy capital expenditure tied to recent spectrum acquisitions and infrastructure development.
- Despite the loss, BSNL’s year-on-year losses are narrower compared to ₹1,542 crore in Q1 FY25, helped by a 14.5% annual revenue gain, largely due to the ramp-up of 4G across ~100,000 sites and lower tariffs.
Government Perspective and Long-Term Outlook
The Ministry of Communications maintains a cautious yet optimistic tone: despite near-term headwinds from high CapEx and depreciation, robust revenue growth and declining operational costs remain key to BSNL’s path back to profitability. They foresee these fundamentals strengthening over time.
Quick Snapshot
| Metric | Q1 FY26 Value | Comparison |
|---|---|---|
| Net Loss | ₹1,049 crore | Post two profitable quarters |
| Revenue | ₹5,029.6 crore | ↓ 24% QoQ |
| Employee Costs | ₹1,940 crore | ↑ 39% QoQ |
| Total Expenses | ₹6,840 crore | ↓ 9.4% QoQ |
| Depreciation & Amortization | ₹1,940 crore | ↑ 43% YoY |
| YoY Loss Comparison | ↓ from ₹1,542 crore | Narrowing loss |
Final Takeaway
BSNL’s return to red in Q1 FY26 underscores the cost of investing in future-readiness—particularly in spectrum-led 4G upgrades—as revenue growth continues to lag. Reducing operating costs and returning to sustainable margin levels remain critical amid India’s fierce telecom competition.
