New Delhi: Bharat Sanchar Nigam Limited (BSNL) is set to generate robust operating cash flows on a quarterly basis as the state-owned telecom operator emphasizes operational performance over net profit margins, Union Minister of Communications Jyotiraditya Scindia announced on Monday.

During the BSNL’s Strategic Review and Planning Meeting for 2025-26, Scindia stressed that investors and stakeholders should prioritize cash flow metrics instead of bottom-line figures, pointing out the effects of unprecedented capital expenditure on depreciation costs.

“We will achieve healthy operating cash flows on a quarterly basis. We are all dedicated to this objective,” the minister stated, outlining a performance framework focused on operational efficiency rather than conventional profit metrics.

“It is crucial to focus on the operating margin and operating cash flows, rather than just the bottom line,” Scindia remarked, noting that depreciation is an accounting adjustment rather than a true cash outflow.
BSNL showed significant operational improvement last year, with operating margins increasing 2.5 times from ₹2,395 crore to around ₹5,100 crore, indicating the company’s improved operational efficiency.

The minister identified customer satisfaction as the foundation of BSNL’s growth strategy, asserting that enhanced operational metrics and profitability would naturally result from better service quality.
“Customer satisfaction is paramount. If you can achieve customer satisfaction, expand your customer base, and effectively up-sell and cross-sell products, then operating cash flow and net profit will follow suit,” he elaborated.

Scindia also highlighted notable variations in average revenue per user (ARPU) across BSNL’s operational circles, with figures ranging from ₹40-45 in certain areas to over ₹175 in others. The company intends to identify and replicate successful strategies from high-performing circles to elevate overall ARPU levels.

“There is a significant amount of variation, but the key is to recognize successful examples and replicate them across different areas,” he remarked, suggesting plans for systematic knowledge sharing among regions. ARPU enhancements will be realized through improved customer service, more effective customer relationship management (CRM), and a strategic emphasis on customer retention and growth.

Dismissing conventional target-setting methods, Scindia stressed the importance of integrating customer satisfaction as a core organizational philosophy instead of merely chasing numerical goals. “Setting targets is pointless. What truly matters is fostering a culture of customer satisfaction within the organization,” he asserted. “When that culture is realized, you will witness increased market share, enhanced accolades, improved revenue, and better cost management.”