BSNL Achieves 93% of Revenue Target in Q2; ARPU Rises to Rs.91, Says Jyotiraditya Scindia

BSNL Nears Revenue Target with 93% Achievement in Q2 FY26; ARPU Jumps to ₹91, Says Jyotiraditya Scindia

New Delhi, October 30, 2025: State-run telecom giant Bharat Sanchar Nigam Ltd (BSNL) reported a strong performance for the second quarter of FY26, achieving 93% of its revenue target and showing healthy growth in operational metrics. Union Telecom Minister Jyotiraditya Scindia lauded the company’s progress while urging its management to sharpen focus on service quality and cost efficiency to compete effectively with private sector peers.

According to Scindia, BSNL generated ₹5,347 crore in revenue during the September quarter, against a target of ₹5,740 crore. “This performance is commendable given the ambitious targets we set, reflecting a continued momentum in BSNL’s turnaround journey,” the minister said during a quarterly review meeting.

For the first half of FY26, BSNL’s total revenue stood at ₹11,134 crore, positioning the company well on track toward its annual goal of ₹27,500 crore, a projected 20% year-on-year (YoY) increase over FY25’s estimated revenue of ₹23,000 crore.

ARPU Rises to ₹91; Select Circles Deliver Exceptional Performance

A key highlight of BSNL’s Q2 performance was the 12% sequential jump in Average Revenue Per User (ARPU) — a key industry benchmark for profitability and customer value. ARPU climbed from ₹81 in Q1 FY26 to ₹91 in Q2 FY26, signaling improving monetization and user engagement.

Scindia highlighted that some circles, including Maharashtra, Kerala, UP East, Andaman & Nicobar, and Jammu & Kashmir, reported exceptional results with ARPUs touching as high as ₹214, reflecting strong subscriber retention and premium service adoption.

However, he also pointed out that certain regions, such as Madhya Pradesh, Jharkhand, and Kolkata, continue to lag behind, with ARPUs around ₹60, indicating room for improvement. “Performance gaps across circles must be bridged swiftly. Every circle must aim for sustainable profitability and operational consistency,” the minister emphasized.

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Scindia’s Seven-Point Roadmap to Accelerate BSNL’s Growth

During the review, Scindia unveiled a seven-point roadmap aimed at transforming BSNL into a more agile, customer-centric, and competitive telecom operator. The plan focuses on enhancing service quality, fiscal discipline, operational efficiency, and innovation across business verticals.

He reiterated that quality of service (QoS) is “non-negotiable” and must be monitored daily rather than weekly or monthly. “Parameters like uptime, mean repair time, and customer response time should be tracked rigorously. Once service quality improves, every other metric — from ARPU to revenue — will follow,” Scindia said.

To strengthen BSNL’s network resilience, the minister directed that all battery and power backup replacements across circles be completed by December 31, 2025, advancing the earlier March 2026 deadline. He urged immediate escalation of any procurement or supplier issues to the Department of Telecommunications (DoT) to prevent delays.

Scindia also encouraged benchmarking BSNL’s service standards against private operators such as Jio, Airtel, and Vi. “Understanding where BSNL stands relative to competition is the first step toward meaningful improvement,” he stated.

Cost Discipline and Profitability Under Focus

The minister placed strong emphasis on fiscal discipline and cost optimization, warning that rising costs without matching revenue growth would not be acceptable.

“No circle should post a negative EBITDA even for a single day. Every rupee saved strengthens BSNL’s bottom line,” Scindia said, urging management teams to curb inefficiencies and focus on measurable outcomes.

He emphasized that cost control must be treated as a strategic priority, not merely a financial exercise, adding that operational heads should identify and eliminate non-productive expenses.

Diversification and New Revenue Streams

Scindia also called for innovation and diversification in BSNL’s business model. He encouraged the company to explore new revenue streams across its Consumer Mobility, Enterprise Business, and Consumer Fixed Access segments.

Drawing parallels from the Department of Posts, which recently began offering KYC services for mutual funds, Scindia said BSNL should leverage its national presence to launch value-added digital and enterprise services.

He set a clear target for the company to achieve a 50:50 revenue split between government and private sector clients by the end of FY27, emphasizing the need for a balanced and sustainable revenue base.

Recognising Top-Performing Circles

Acknowledging exemplary performances, Scindia named Karnataka, Haryana, UP East, Jammu & Kashmir, and Andaman & Nicobar as BSNL’s “five-star circles” for Q2 FY26. These regions demonstrated strong operational efficiency, higher ARPUs, and improved customer engagement.

He urged other circles to “emulate and challenge” the top performers in the upcoming quarters to foster healthy internal competition and continuous improvement.

Strengthening Internal Governance and Accountability

In a move aimed at decentralizing decision-making, Scindia directed circle heads to replicate the central review model within their respective regions. Each circle, he said, should conduct structured reviews involving its eight business areas, which in turn manage operational and sub-divisional units.

“These 400 officers form BSNL’s core management team — your family. Empower them, motivate them, and the system will drive itself,” Scindia said, calling for stronger leadership accountability and collaboration at every level.

BSNL’s Transformation Journey Continues

BSNL’s performance in Q2 FY26 reflects steady progress in its turnaround plan, aided by government support and ongoing modernization efforts such as 4G rollout, fiber network expansion, and integration of next-generation technologies.

While challenges remain — including rising competition from private players and evolving consumer expectations — the company’s consistent revenue growth, improving ARPU, and focus on operational efficiency signal a positive trajectory.

Industry analysts view BSNL’s improving financial discipline and focus on service quality as crucial steps toward restoring its market relevance and enhancing customer trust. With the government’s continued backing and strategic direction under Minister Scindia, BSNL appears poised to reclaim its position as a credible national telecom player in the coming years.

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