Mahanagar Telephone Nigam LimitedQ1 FY27 Results & Financial Update
Mahanagar Telephone Nigam Limited: Q1 FY27 consolidated results and company financials – revenue ₹216.89 Cr, PAT ₹-842.35 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Mahanagar Telephone Nigam Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Mahanagar Telephone Nigam Limited reported consolidated revenue from operations of INR 216.89 crore for the quarter ended June 30, 2026, accompanied by other income of INR 75.15 crore, bringing total consolidated income to INR 292.04 crore.
The company sustained a heavy consolidated net loss after tax of INR 842.35 crore for Q1 FY27, driven predominantly by overwhelming finance costs of INR 747.54 crore on outstanding debt obligations.
Total consolidated expenses for the quarter stood at INR 1,134.70 crore, where employee benefits expense at INR 137.47 crore and depreciation and amortization at INR 137.28 crore formed the major operational overheads alongside license fees and spectrum charges.
Operating performance continues to reflect structural changes under the Service Level Agreement with BSNL, under which certain customers in Delhi and Mumbai have been migrated and billing and collections are handled by BSNL, yielding a recognized revenue share of INR 34.39 crore during the period.
The company's financial position is characterized by a negative net worth of INR 30,787.04 crore on a consolidated basis and total outstanding debt capital of INR 26,325.92 crore, leading to defaults across multiple bank loan accounts and classifications as an incipient sick enterprise.
Statutory auditors issued a modified review report highlighting numerous ongoing qualifications and uncertainties, including unverified BSNL and DoT reconciliations, non-compliance with lease accounting standards under Ind AS 116, manual billing in certain units due to software downtime, and unprovided interest obligations.
Profit after tax was ₹-842.35 Cr for the reported quarter. EPS was ₹-13.37 for the reported quarter.
01 · Business model
What does Mahanagar Telephone Nigam do?
Mahanagar Telephone Nigam Limited (MTNL) is a public sector telecommunications enterprise operating primarily in the metropolitan areas of Delhi and Mumbai, providing basic fixed-line telephony, cellular mobile services, and telecom infrastructure leasing.
Following a comprehensive service level agreement effective January 1, 2025, MTNL's entire telecom operations in Delhi and Mumbai are managed and run by Bharat Sanchar Nigam Limited (BSNL), with BSNL assuming responsibility for capital and operating expenditures to maintain EBITDA-neutral operations for MTNL.
The enterprise generates revenue streams from traditional basic telephone services, cellular offerings, and the leasing of telecom infrastructure assets, alongside other income from financial and administrative items.
MTNL remains majority-owned by the Government of India, which provides systemic financial backing through sovereign guarantee-backed bonds, interest-servicing soft loans, and budgetary allocations while the company undergoes structured reviews by administrative committees.
02 · Historical context
What shaped the business before this quarter
Previously, on November 22, 2024, MTNL entered into a revised Service Level Agreement with BSNL superseding an older 2021 pact, handing over operational execution in Delhi and Mumbai to BSNL effective January 1, 2025.
Historically, the Government of India funded the ex-gratia cost of MTNL's Voluntary Retirement Scheme and backed sovereign guarantee bonds amounting to INR 17,571 crore.
Earlier, the company received soft loans aggregating INR 3,657.14 crore from the central government specifically directed toward servicing interest on sovereign guarantee bonds.
During the preceding fiscal year FY 2025-26, MTNL realized INR 418.76 crore through ongoing monetization of land and buildings with the assistance of DIPAM.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹216.89 Cr |
| Total income | ₹292.04 Cr |
| Profit before tax | ₹-842.66 Cr |
| Profit after tax | ₹-842.35 Cr |
| EPS | ₹-13.37 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Revenue from operations of INR 216.89 crore comprised basic and other services of INR 69.96 crore, cellular revenue of INR 20.69 crore, and infrastructure leasing revenue of INR 126.53 crore.
Under the operational framework with BSNL, MTNL recognized INR 34.39 crore as revenue share during the quarter based on agreed methodologies and information provided by BSNL.
What drove margins
Finance costs of INR 747.54 crore completely consumed operating inflows, resulting in a pre-tax loss of INR 842.36 crore and an operating margin of -78.37%.
Employee benefits expenses of INR 137.47 crore and depreciation and amortization of INR 137.28 crore exerted persistent pressure on the cost structure despite operational transfer to BSNL.
05 · Demand, customers & order book
Where demand is coming from
Certain customers in Delhi and Mumbai were migrated to BSNL effective January 1, 2025, with billing and collections managed directly by BSNL.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Generated segment revenue of INR 126.53 crore and delivered a positive segment result before interest and tax of INR 101.71 crore.
Basic and other services recorded revenue of INR 69.96 crore with a segment loss of INR 106.87 crore, while cellular services reported revenue of INR 20.69 crore and a segment loss of INR 97.06 crore.
Geography and market mix
Telecom operations are concentrated across the Delhi and Mumbai service areas, where customer migration and billing operations are executed by BSNL pursuant to the Service Level Agreement.
07 · Strategy & new businesses
How the company is trying to change its growth mix
The company continues land and building monetization efforts with the assistance of DIPAM, following proceeds of INR 418.76 crore realized in FY 2025-26, with further property parcels under active process.
08 · Reported developments
What changed operationally
Management maintains the going concern assumption, supported by the Government of India's majority shareholding, funded VRS costs, sovereign guarantee bonds, and ongoing consideration of working capital support.
09 · Pressure points & risks
What is not going smoothly
MTNL reported a negative net worth of INR 30,787.04 crore on a consolidated basis, continuing to incur substantial cash losses while classified as an 'Incipient Sick CPSE' by the Department of Public Enterprises.
Statutory auditors issued a qualified review report citing numerous unverified inter-company balances with BSNL and DoT, manual billing in select units, non-compliance with Ind AS 116 on leases, and lack of impairment testing on 3G spectrum licenses.
10 · Items worth noticing
The line items that can distort a quick read
The loan of INR 3,657.14 crore extended by the Government of India for paying interest on sovereign bonds contains no stipulation regarding interest payment terms, leading MTNL to accrue zero interest on this facility.
11 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
As of June 30, 2026, deficits persisted across employee trusts, including INR 76.81 crore in the Gratuity Trust (since 2016), INR 14.45 crore in the Leave Encashment Trust (since 2024), and INR 123.00 crore in the GPF Trust (since 2019).
The company recognized a provision for Expected Credit Loss (ECL) amounting to INR 13.49 crore on long-outstanding dues from operators and other recoverables exceeding three years.
Capital allocation & funding
Due to defaults in repayment of bank installments and interest amounting to INR 3,119.49 crore, all loan accounts from banks have been classified as Non-Performing Assets (NPAs) as of June 30, 2026.
Total financial indebtedness stood at INR 37,223 crore, comprising bank loans of INR 9,495 crore, Sovereign Guarantee bonds of INR 24,071 crore, and a loan from DoT for paying bond interest of INR 3,657 crore.
12 · Beyond the numbers
What changed beyond the numbers
Reported update
Board Meeting Timing
The Board of Directors meeting for approving the Q1 FY27 financial results commenced at 07:00 PM and concluded at 09:00 PM on August 12, 2026.
13 · Previous-quarter changes
What changed since the previous quarter
Consolidated revenue from operations decreased from INR 370.51 crore in Q4 FY26 to INR 216.89 crore in Q1 FY27, while the net loss widened from INR 306.95 crore to INR 842.36 crore.
14 · Key Q&A
The quarter, answered directly
What does Mahanagar Telephone Nigam do?
Mahanagar Telephone Nigam Limited (MTNL) is a public sector telecommunications enterprise operating primarily in the metropolitan areas of Delhi and Mumbai, providing basic fixed-line telephony, cellular mobile services, and telecom infrastructure leasing.
What is the clearest takeaway from Q1 FY27?
Mahanagar Telephone Nigam Limited reported consolidated revenue from operations of INR 216.89 crore for the quarter ended June 30, 2026, accompanied by other income of INR 75.15 crore, bringing total consolidated income to INR 292.04 crore.
What drove revenue or demand?
Revenue from operations of INR 216.89 crore comprised basic and other services of INR 69.96 crore, cellular revenue of INR 20.69 crore, and infrastructure leasing revenue of INR 126.53 crore.
What mattered most for margins or profitability?
Finance costs of INR 747.54 crore completely consumed operating inflows, resulting in a pre-tax loss of INR 842.36 crore and an operating margin of -78.37%.
What changed operationally beyond the headline numbers?
The company continues land and building monetization efforts with the assistance of DIPAM, following proceeds of INR 418.76 crore realized in FY 2025-26, with further property parcels under active process.
What are the main pressure points disclosed for the quarter?
MTNL reported a negative net worth of INR 30,787.04 crore on a consolidated basis, continuing to incur substantial cash losses while classified as an 'Incipient Sick CPSE' by the Department of Public Enterprises.
15 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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16 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Committee of Secretaries Recommendations: Monitor official announcements regarding the recommendations of the Committee of Secretaries examining asset monetization, AGR dues, debt restructuring, and the proposed merger with BSNL.
- 02
Legal Proceedings and Arbitration: Track upcoming legal hearings, including the Delhi High Court proceedings scheduled for November 5, 2026, regarding Canara Bank arbitration petitions and ongoing tax dispute resolutions.
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