BSNL to Add up to 60,000 More Towers, FY26 Operating Profit to Grow in Double Digits: Scindia

Why It Matters

The expansion positions BSNL as a credible competitor in India’s 5G race and signals a turnaround for a historically loss‑making state utility, potentially reshaping market dynamics.

Key Takeaways

• Adding up to 60,000 towers expands network footprint
• Operating profit expected double‑digit growth FY26
• Subscriber base rose to 9.27 crore (~92.7 million)
• 4G stack enables swift 5G transition
• Capital spend hits ₹20,000 crore (~$2.4 billion)

Pulse Analysis

India’s telecom sector has long been dominated by private giants, but the government’s push to revitalize BSNL marks a strategic shift. By deploying up to 60,000 additional towers, BSNL aims to close coverage gaps in rural and semi‑urban markets where private operators have limited presence. The tower surge not only bolsters the company’s 4G footprint but also lays a robust foundation for a cost‑effective 5G rollout, leveraging the indigenous Atmanirbhar stack that reduces reliance on foreign equipment and licensing fees.

Financially, BSNL’s recent performance signals a dramatic reversal. After an 18‑year profit drought, the firm reported a quarterly profit of ₹262 crore (≈$31 million) and expects operating earnings to exceed ₹5,000 crore ($600 million) with double‑digit growth in FY 2025‑26. This surge is underpinned by a historic ₹20,000 crore ($2.4 billion) capital investment, reflecting confidence from the Ministry of Communications. The improved margins and cash generation could free up resources for further network upgrades and debt reduction, enhancing the company’s credit profile.

The transition to 5G is poised to be smoother for BSNL than for many peers, thanks to its self‑reliant 4G architecture. Only minimal core‑network upgrades are required, allowing faster service activation and competitive pricing. As subscriber numbers climb to 9.27 crore (~92.7 million), BSNL can leverage scale to negotiate better vendor terms and attract enterprise customers seeking reliable, domestically sourced connectivity. This momentum may pressure private operators to innovate and could accelerate India’s overall digital inclusion goals.