Mahanagar Telephone Nigam's Q1 FY 2025-26 Quarterly Results

Result Summary

• Mahanagar Telephone Nigam Ltd reported a 41.4% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 45.8%.
• Its expenses for the quarter were up by 1.2% QoQ and down 0.5% YoY.
• The net profit increased 20.3% QoQ and increased 21.9% YoY.
• The earnings per share (EPS) of Mahanagar Telephone Nigam Ltd declined at 15 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

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Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Mahanagar Telephone Nigam Ltd (MTNL) is a telecommunications service provider primarily operating in the cities of Mumbai and New Delhi, India. The company is known for offering a variety of telecom services, including fixed-line telephony, mobile services, broadband, and internet services. MTNL has historically played a significant role in the telecom industry in India, although it has faced increasing competition from private players in recent years. Notably, MTNL is a state-owned enterprise, which aligns it with the government’s initiatives to expand telecommunications infrastructure. As of the latest updates available until October 2023, there are no specific major developments that have been highlighted for MTNL. However, the company has been part of broader industry trends towards digital transformation and increased mobile internet penetration.

Revenue

In the first quarter of the fiscal year 2026 (Q1FY26), Mahanagar Telephone Nigam Ltd reported a total income of ₹207.13 crores. This marks a significant decline from the previous quarter (Q4FY25), where the total income was ₹353.54 crores, representing a quarter-over-quarter (QoQ) decrease of 41.4%. Compared to the same quarter in the previous year (Q1FY25), where the total income was ₹382.35 crores, the company experienced a year-over-year (YoY) decrease of 45.8%. This decline in revenue could be indicative of several factors, including competitive pressures and shifting market dynamics, but specific reasons are not detailed in the provided data.

Profitability

In terms of profitability, MTNL reported a loss before tax of ₹943.66 crores in Q1FY26. This represents a deterioration from the loss of ₹783.67 crores reported in Q4FY25, with a QoQ increase in loss of 20.4%. When compared to Q1FY25, where the pre-tax loss was ₹774.12 crores, there is a YoY increase in losses of 21.9%. The profit after tax reflects a similar trend, with a reported loss of ₹943.15 crores in Q1FY26, compared to losses of ₹783.74 crores in Q4FY25 and ₹773.46 crores in Q1FY25. The earnings per share (EPS) for the latest quarter stands at -₹15.00, which has declined from -₹12.40 in Q4FY25 and -₹12.30 in Q1FY25, indicating a QoQ increase in negative earnings per share by 21.0% and a YoY increase by 22.0%.

Operating Metrics

The total expenses for MTNL in Q1FY26 amounted to ₹1150.79 crores, which is a slight increase of 1.2% from the previous quarter’s expenses of ₹1137.21 crores. When compared to the same period last year, there is a marginal decrease of 0.5% from ₹1156.48 crores. The company did not incur any tax expenses in Q1FY26, whereas a negligible tax credit was recorded in Q4FY25. The data provided does not include specific operational metrics such as subscriber numbers, average revenue per user (ARPU), or capital expenditures, which are commonly used to assess operational efficiency and the scale of telecommunications operations. However, the financial performance trends reflected in the expenses and profit figures suggest significant operational challenges.