- MTNL posted a consolidated net loss of Rs 842 crore for the June quarter
- Net loss narrowed from Rs 943 crore in the same quarter last year
- Quarterly revenue increased 26.2% year-on-year to Rs 217 crore
Mahanagar Telephone Nigam Ltd (MTNL) reported a consolidated net loss of Rs 842.36 crore for the quarter ended June 30, 2026, narrowing from a loss of Rs 943.15 crore in the year-ago period.
Consolidated revenue from operations rose 25.9% year-on-year to Rs 216.89 crore from Rs 172.22 crore a year earlier. Total income, including other income, stood at Rs 292.04 crore during the quarter, compared with Rs 207.13 crore in the corresponding period last year.
The improvement in revenue was led by infrastructure leasing, which contributed Rs 126.53 crore during the quarter. Revenue from basic and other services stood at Rs 69.96 crore, while cellular revenue was Rs 20.69 crore.
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The company's EBITDA loss also narrowed during the quarter to Rs 643 crore from Rs 699 crore in the corresponding period last year.
MTNL's finance cost remained elevated at Rs 747.54 crore in the June quarter, compared with Rs 754.36 crore a year earlier. Employee benefit expenses rose to Rs 137.47 crore from Rs 133.80 crore, while depreciation and amortisation expense declined to Rs 137.28 crore from Rs 145.17 crore.
The company's consolidated net worth remained negative at Rs 30,787.04 crore as of June 30, while outstanding debt capital stood at Rs 26,325.92 crore. Its interest service coverage ratio was 0.06 times during the quarter.
Under its service-level agreement with BSNL, MTNL's telecom operations in Delhi and Mumbai are being run by BSNL on an EBITDA-neutral basis. MTNL recognised Rs 34.39 crore as revenue share during the quarter. The company also said the government has extended soft loans of Rs 3,657.14 crore for servicing interest on sovereign-guarantee-backed bonds and sanctioned Rs 1,851 crore for network upgradation.
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However, the statutory auditors issued a qualified conclusion on the results. They flagged, among other matters, a net recoverable amount of Rs 3,961.05 crore from BSNL that remains subject to reconciliation and confirmation.
The auditors also noted that MTNL continues to incur cash losses, has negative net worth and has defaulted on repayment of bank term-loan instalments and interest.
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