Announced Thu, 21 May · 19:28 IST

LETTER ATTACHED

Revenue DeclineBoard & Shareholder Meetings View source PDF

MTNL · price

Loading chart…

▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve 14 horizons · vs prior close
+3.5%1-day move
₹28.80
prior close
₹29.79
base price
After-mkt
timing
5m10m15m30m1D2D3D4D5D7D15D1M2M3M
+1.0+0.9+0.6-0.9+3.5+5.9+7.3+4.9+3.4+5.6+7.6+11.1-3.9
Up moveDown movePending
AI summary

MTNL's Board approved audited FY2026 results showing total income of Rs. 1,468.81 crore, a massive standalone loss of Rs. 3,102.94 crore, and fully eroded net worth at negative Rs. 29,974.84 crore. The company has defaulted on bank borrowings worth Rs. 9,262.53 crore (classified as NPAs), with total qualified borrowings of Rs. 27,116.76 crore and a CARE D credit rating. Auditors issued an Adverse Opinion citing going concern risks, unreconciled BSNL receivables of Rs. 4,101.34 crore, pending DoT balances, and multiple accounting non-compliances. The Board appointed Shri Vasudev Singh as new CFO replacing Shri Anirudh Prasad Singh, and reappointed M/s. R.M. Bansal & Co. as Cost Auditor at Rs. 1,12,100 inclusive of GST. Following the November 2024 SLA with BSNL, telecom operations in Delhi and Mumbai were transferred to BSNL from January 1, 2025, with MTNL recognizing Rs. 156.51 crore revenue share. A Committee of Secretaries is reviewing options for MTNL-BSNL merger. The company also realized Rs. 418.76 crore from property sales during the year.

Likely market impact

MTNL remains a financially distressed CPSE with massive debt obligations, ongoing default risks, and uncertain future given the pending BSNL merger discussions. The adverse auditor opinion and eroded net worth signal significant credit and investment risk. The SLA with BSNL has fundamentally altered MTNL's operational structure.