BSNL to Prioritise Operational Cash Flows Over Profits, Says Union Minister Scindia

New Delhi, July 28, 2025: Bharat Sanchar Nigam Limited (BSNL) will now focus on generating healthy operational cash flows on a quarterly basis, Union Minister of Communications Jyotiraditya Scindia announced, shifting the spotlight away from traditional net profit margins. Addressing BSNL’s Strategic Review and Planning Meeting for 2025–26, the minister asserted that operational performance would define the public sector telecom’s new success framework.

Scindia clarified that stakeholders should focus on operating margins and actual cash flows rather than bottom-line numbers, which are often influenced by non-cash adjustments like depreciation due to heavy capital expenditure. He said the company was committed to delivering positive operational cash results and urged analysts to interpret performance in light of these fundamentals.

Last year, BSNL saw a significant surge in operational efficiency, with operating margins rising from ₹2,395 crore to around ₹5,100 crore—more than double in a single year. Scindia credited this improvement to disciplined execution and a restructured internal focus on customer-centric service delivery.

The minister underscored that customer satisfaction should form the foundation of BSNL’s strategic roadmap. According to him, when customers are satisfied, other business metrics—such as user base expansion, product up-selling, and cash generation—will follow organically.

He also noted wide variations in Average Revenue Per User (ARPU) across BSNL circles, from as low as ₹40–₹45 in certain regions to over ₹175 in high-performing ones. Scindia announced that BSNL will identify best practices from top-performing circles and replicate them in underperforming regions to elevate national ARPU levels.

The minister advocated for an end to rigid target-based planning and instead called for a deep-rooted organisational culture centred on consumer satisfaction. He said this philosophical shift would yield long-term dividends in market share, revenue growth, and operational efficiency.

By moving away from arbitrary numerical benchmarks and anchoring strategy in service quality, BSNL hopes to modernise its approach and strengthen its relevance in India’s highly competitive telecom landscape.