Synopsis:
MTNL’s Q1 FY26 revenue fell 61 percent QoQ to Rs. 66 crores; net loss widened to Rs. 943 crores. Net worth eroded, heavy debt persists, and significant loan defaults highlight severe financial distress.
During Thursday’s trading session, shares of this state-owned company engaged in providing telecom services moved down by nearly 3 percent on BSE, after reporting financial results for Q1 FY26.
At 02:09 p.m., the shares of Mahanagar Telephone Nigam Limited were trading in the red at Rs. 42.21 on BSE, down by around 2.3 percent, as against its previous closing price of Rs. 43.21, with a market cap of Rs. 2,659 crores. The stock has delivered negative returns of over 31 percent in the last one year, but has fallen by around 19 percent in the last one month.
What’s the News
Mahanagar Telephone Nigam Limited (MTNL) announced the financial results for Q1 FY26 on Wednesday after market hours, according to the latest regulatory filings on the stock exchanges.
For Q1 FY26, MTNL reported a consolidated total revenue from operations of Rs. 66 crores, down by around 61 percent QoQ from Rs. 170 crores in Q4 FY25 and 64 percent from Rs. 184 crores recorded in Q1 FY25.
The company reported a net loss of Rs. 943 crores for the quarter, with net loss widening by around 14 percent QoQ from Rs. 828 crores in Q4 FY25 and about 22 percent YoY from Rs. 773 crores in Q1 FY25.
The company has an outstanding loan of Rs 1,827.6 crores, provided by the Government of India for the payment of interest on Sovereign Guarantee Bonds issued by the company.
MTNL’s net worth has been fully eroded. The company incurred a net cash loss in Q1 FY26 as well as in the preceding fiscal year, with current liabilities significantly exceeding current assets. Additionally, during the quarter, MTNL defaulted on repayment obligations, including term loan instalments aggregating Rs. 1,868.6 crore and accrued interest on term loans amounting to Rs. 790.6 crore.
Written by Shivani Singh
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