Despite Rs 3 lakh crore in taxpayer support, BSNL fails to make a mark
BSNL reported its first quarterly profit in nearly two decades only last year
- Feb 25, 2026,
- Updated Feb 25, 2026 7:29 PM IST
State-run telecom operator BSNL has survived the past six years on massive government support funded by taxpayers. Despite revival packages of over Rs 3 lakh crore, the company only reported its first quarterly profit in nearly two decades last year - and has since slipped back into losses.
Also read: 'Complete bizarre, won't let it go easily': Govt slaps notice on BSNL Director after 'snan kit' row
Despite its dependence on revival funds, BSNL has found itself in controversy over elaborate arrangements planned for one of its directors during a proposed visit to Prayagraj.
An internal office order detailing the two-day visit of Vivek Banzal, Director (CFA) on the BSNL Board, went viral ahead of the scheduled February 25-26 programme. Nearly 50 officials were assigned close to 20 tasks to manage the visit. The itinerary included bathing at the Sangam, a boat ride, and visits to Bade Hanuman Mandir, Akshayavat and Patalpuri temples.
The document directed officials to arrange "snan kits" comprising towel, undergarment, slippers, comb, mirror and an oil bottle. It specified six male kits (towel, underwear, mirror, comb, soap, shampoo, oil) and two female kits. One bed sheet was to be arranged for general use at the ghat.
At the hotel and Circuit House, dry fruit bowl, fruit bowl, shaving kit, towel, toothpaste, brush, soap, shampoo, comb and oil were to be arranged, the order said. The visit was, however, subsequently cancelled after the order surfaced online.
BSNL: Surviving on govt packages
BSNL's survival over the past six years has depended heavily on government relief measures.
In October 2019, the central government approved the first revival package for BSNL and MTNL amounting to Rs 69,000 crore, aimed at stabilising operations and addressing mounting losses.
On July 27, 2022, the Union Cabinet cleared a second revival package for BSNL worth Rs 1.64 lakh crore.
"Telecom is a strategic sector. Presence of BSNL in telecom market acts as a market balancer. BSNL plays a crucial role in expansion of telecom services in rural areas, development of indigenous technology and disaster relief. To make BSNL financially viable, the Union Cabinet chaired by Prime Minister Narendra Modi today approved the revival package of BSNL amounting to Rs 1.64 Lakh Cr," the Cabinet said in a statement on 27 July 2022.
In June 2023, as part of the revival strategy, the Cabinet approved a third revival package with a total outlay of Rs 89,047 crore. It included allotment of 4G/5G spectrum for BSNL through equity infusion.
Taken together, the three packages amount to over Rs 3 lakh crore in government support.
Financial position: brief return to profit, then losses
In September 2025, Care Edge Ratings noted: "(BSNL's) total debt has reduced to Rs 25,600 crore as on FY25, comprising sovereign-guaranteed bonds and non-cumulative preference shares, with no nearterm repayment obligations, providing comfort on debt coverage and interest servicing."
In February 2025, BSNL reported its first quarterly profit since 2007. Net profit rose to Rs 262.4 crore in the quarter ended December 31, 2024, compared to a loss of Rs 1,245.16 crore in the same period the previous fiscal year. Revenue rose 2.7% to Rs 4,968.9 crore.
However, the recovery proved short-lived.
In the October–December quarter of 2026, the state-run telecom operator reported a Rs 1,302 crore loss, compared to a Rs 264 crore net profit in the year-ago period.
BSNL reacts to viral director controversy
BSNL reiterated its commitment to "responsible governance and professional conduct". The telecom major had earlier clarified that comprehensive guidelines governing official visits were already in place and were expected to be followed uniformly across the organisation.
The company stressed that the reported "instance did not align with its established professional standards and institutional values."
"Appropriate action has been taken against the concerned, and instructions have been reiterated to ensure strict adherence to existing conduct rules," BSNL said, adding that the officer on the BSNL Board has been issued a show-cause notice seeking an explanation within seven days as part of the due process framework.
State-run telecom operator BSNL has survived the past six years on massive government support funded by taxpayers. Despite revival packages of over Rs 3 lakh crore, the company only reported its first quarterly profit in nearly two decades last year - and has since slipped back into losses.
Also read: 'Complete bizarre, won't let it go easily': Govt slaps notice on BSNL Director after 'snan kit' row
Despite its dependence on revival funds, BSNL has found itself in controversy over elaborate arrangements planned for one of its directors during a proposed visit to Prayagraj.
An internal office order detailing the two-day visit of Vivek Banzal, Director (CFA) on the BSNL Board, went viral ahead of the scheduled February 25-26 programme. Nearly 50 officials were assigned close to 20 tasks to manage the visit. The itinerary included bathing at the Sangam, a boat ride, and visits to Bade Hanuman Mandir, Akshayavat and Patalpuri temples.
The document directed officials to arrange "snan kits" comprising towel, undergarment, slippers, comb, mirror and an oil bottle. It specified six male kits (towel, underwear, mirror, comb, soap, shampoo, oil) and two female kits. One bed sheet was to be arranged for general use at the ghat.
At the hotel and Circuit House, dry fruit bowl, fruit bowl, shaving kit, towel, toothpaste, brush, soap, shampoo, comb and oil were to be arranged, the order said. The visit was, however, subsequently cancelled after the order surfaced online.
BSNL: Surviving on govt packages
BSNL's survival over the past six years has depended heavily on government relief measures.
In October 2019, the central government approved the first revival package for BSNL and MTNL amounting to Rs 69,000 crore, aimed at stabilising operations and addressing mounting losses.
On July 27, 2022, the Union Cabinet cleared a second revival package for BSNL worth Rs 1.64 lakh crore.
"Telecom is a strategic sector. Presence of BSNL in telecom market acts as a market balancer. BSNL plays a crucial role in expansion of telecom services in rural areas, development of indigenous technology and disaster relief. To make BSNL financially viable, the Union Cabinet chaired by Prime Minister Narendra Modi today approved the revival package of BSNL amounting to Rs 1.64 Lakh Cr," the Cabinet said in a statement on 27 July 2022.
In June 2023, as part of the revival strategy, the Cabinet approved a third revival package with a total outlay of Rs 89,047 crore. It included allotment of 4G/5G spectrum for BSNL through equity infusion.
Taken together, the three packages amount to over Rs 3 lakh crore in government support.
Financial position: brief return to profit, then losses
In September 2025, Care Edge Ratings noted: "(BSNL's) total debt has reduced to Rs 25,600 crore as on FY25, comprising sovereign-guaranteed bonds and non-cumulative preference shares, with no nearterm repayment obligations, providing comfort on debt coverage and interest servicing."
In February 2025, BSNL reported its first quarterly profit since 2007. Net profit rose to Rs 262.4 crore in the quarter ended December 31, 2024, compared to a loss of Rs 1,245.16 crore in the same period the previous fiscal year. Revenue rose 2.7% to Rs 4,968.9 crore.
However, the recovery proved short-lived.
In the October–December quarter of 2026, the state-run telecom operator reported a Rs 1,302 crore loss, compared to a Rs 264 crore net profit in the year-ago period.
BSNL reacts to viral director controversy
BSNL reiterated its commitment to "responsible governance and professional conduct". The telecom major had earlier clarified that comprehensive guidelines governing official visits were already in place and were expected to be followed uniformly across the organisation.
The company stressed that the reported "instance did not align with its established professional standards and institutional values."
"Appropriate action has been taken against the concerned, and instructions have been reiterated to ensure strict adherence to existing conduct rules," BSNL said, adding that the officer on the BSNL Board has been issued a show-cause notice seeking an explanation within seven days as part of the due process framework.