BSNL Reports 10% Increase in Core Service Revenue for Q1 FY2026-27

Shillong, India Jul 13, 2026 ALN: State-owned telecom operator BSNL on Monday reported a 10 per cent year-on-year increase in its core service revenue to Rs 4,418 crore in the first quarter of FY2026-27, driven by strong growth in its enterprise and mobility businesses. The revenue increased from Rs 4,017 crore recorded during the corresponding quarter of the previous financial year, with Enterprise Business and Consumer Mobility emerging as the primary growth drivers.

This growth comes at a critical time for BSNL, which has been navigating a competitive telecommunications landscape marked by aggressive pricing and service offerings from private players. The Indian telecom sector has seen significant evolution over the past decade, particularly with the advent of Reliance Jio in 2016, which disrupted the market with its low-cost data plans and free voice services. The entry of Reliance Jio initiated a price war that forced many established players to rethink their pricing strategies, leading to a consolidation phase in the industry. Several smaller players have either exited the market or merged with larger entities to survive the intense competition.

In this context, BSNL's ability to maintain and grow its revenue is noteworthy. The performance was reviewed by Union Minister for Communications and Development of North Eastern Region, Jyotiraditya M. Scindia, who chaired a strategic review and planning meeting of BSNL to assess the business and operational performance of all 28 telecom circles during the April-June quarter. This meeting is part of a broader push by the government to revitalize BSNL, which has faced financial difficulties in recent years. The government has been keen on ensuring that BSNL remains a viable competitor in the telecom sector, especially given its strategic importance in providing connectivity in rural and underserved areas.

Calling it “a strong start to the financial year,” Scindia noted that the company’s three key business engines were performing well and urged all circles to maintain the momentum through disciplined execution and continuous monitoring. “The three engines of BSNL are firing together. This is an encouraging beginning, but our objective is to consistently build on this momentum throughout the year,” he stated. This emphasis on sustained growth reflects the government's intent to ensure that BSNL remains a viable competitor in the telecom sector. The government’s support is crucial as BSNL embarks on its transformation journey, particularly as it seeks to enhance its service offerings and customer experience.

Sustainable growth, according to Scindia, comes from disciplined execution, continuous monitoring, and an unwavering commitment to the customer. This aligns with global trends where customer service and experience are becoming increasingly important in retaining customers and enhancing brand loyalty. Among the various business verticals, Enterprise Business recorded the highest growth, with revenue rising 19.2 per cent year-on-year to Rs 1,745 crore from Rs 1,463 crore in the same quarter last year. This segment’s growth is indicative of BSNL's successful targeting of businesses and organizations that require reliable communication infrastructure, especially in a post-pandemic world where digital transformation has accelerated. The pandemic has changed the way businesses operate, increasing their reliance on robust digital communication solutions.

Consumer Mobility also played a significant role in the revenue increase, generating Rs 1,724 crore during the quarter, up 8 per cent from Rs 1,594 crore a year earlier. This reflects an increasing demand for mobile services, which have become essential for both personal and professional communication. The rise in Consumer Fixed Access revenue to Rs 960 crore, compared with Rs 948 crore in the corresponding period of FY2025-26, shows that BSNL is also managing to retain its fixed-line customers amidst a general decline in this segment across the industry. Fixed-line services have been declining globally as users shift to mobile solutions, making BSNL's performance in this area particularly noteworthy.

During the review meeting, the Minister recognized Jammu & Kashmir, Jharkhand, Uttar Pradesh West, and Karnataka as the best-performing BSNL circles across key operational parameters. This recognition not only serves to motivate these circles but also highlights the regional disparities in telecom performance within India. Different states have varying levels of infrastructure development and customer engagement strategies, which can significantly impact a telecom operator's performance. For instance, states with better infrastructure tend to have higher service adoption rates, while those lagging in connectivity may struggle.

Scindia emphasized that the next phase of BSNL’s transformation should focus on delivering superior customer experience and operational excellence. He directed all circles to improve key quality of service indicators, including Optical Line Terminal (OLT) uptime, Base Transceiver Station (BTS) uptime, and lower Mean Time to Repair (MTTR), to ensure better network reliability and customer satisfaction. Improving these metrics is crucial as they directly affect customer perceptions and experiences, which are critical in an industry where consumer choice is abundant. Telecom operators worldwide are increasingly prioritizing customer experience, recognizing that satisfied customers are more likely to remain loyal and recommend services to others.

Moreover, the focus on operational excellence is aligned with global best practices in the telecommunications sector, where companies are increasingly investing in technology and training to enhance service delivery. The emphasis on technology is particularly important as BSNL prepares to roll out 5G services, which require robust infrastructure and high service reliability. The government's push for digital India initiatives also necessitates that BSNL aligns its services with national priorities, including enhancing connectivity in rural and underserved areas. The rollout of 5G technology is expected to revolutionize various sectors, from healthcare to education, making it imperative for BSNL to be at the forefront of this transformation.

In conclusion, BSNL's 10% increase in core service revenue for the first quarter of FY2026-27 is a positive sign for the state-owned operator, indicating that it is on the right path toward recovery and growth. However, sustaining this momentum will require ongoing efforts in customer service, operational efficiency, and technological advancement. As BSNL continues to navigate a challenging environment, its ability to adapt and innovate will be critical in maintaining its position in the competitive telecom market. The road ahead will demand not only strategic investments but also a keen focus on customer needs and market trends, ensuring that BSNL can compete effectively against both established players and new entrants in the rapidly evolving telecom landscape.