In the third quarter of 2024-25 financial year, Bharat Sanchar Nigam Limited (BSNL) reported a profit of ₹262 crore, a result attributed to changes in the way its revenue and expenses are accounted for, according to reports. While there was a significant reduction in expenses, this was not due to cost-cutting or improved efficiency but rather due to changes in the accounting methodology, reports The Print.

One of the notable adjustments was a ₹337 crore reduction in employee expenses. However, the report clarifies that this was not due to cuts in salaries, pensions, or other benefits, but rather because a large portion of these costs was reclassified as assets.

The company also shifted its accounting method for spectrum fees, moving from the traditional straight-line method (SLM) to a unit-based amortisation method (UBAM). As a result, funds were set aside for future expenses, and any unspent funds were recognised as income, contributing to a growth in 'other income', the report adds.

This profit of ₹262 crore is the first such gain for BSNL in seven years. Analysts attribute this success primarily to the increase in tariffs by private telecom players like Jio, Airtel, and VI, which has enabled BSNL to gain 5 million new subscribers. To achieve this, the company introduced various policy initiatives, including the rapid rollout of 4G services, 5G trials, and improvements in customer service.

However, despite the increase in subscribers, BSNL faced challenges related to network reliability and call drops, losing over 300,000 customers. In response, the company has made several announcements to address these issues.

To resolve connectivity problems, BSNL has installed 30,000 new batteries and activated over 15,000 new power plants. By June 2025, the company plans to establish more than 35,000 additional power plants, as per a post shared by the Department of Telecommunications.