Mahanagar Telephone Nigam Ltd (MTNL) reported a consolidated net loss of ₹842.36 crore for the quarter ended June 30, 2026, representing a significant improvement from the loss of ₹943.15 crore recorded in the same quarter of the previous year. According to the latest financial results, the company's standalone net loss narrowed by 10.6% year-on-year to ₹841.07 crore from ₹941.03 crore in Q1FY25. The Board of Directors approved the unaudited financial results on August 12, 2026, demonstrating strong revenue growth with consolidated revenue from operations rising 26.5% year-on-year to ₹200.08 crore from ₹158.14 crore in the corresponding period last year.
The company's revenue growth was primarily driven by infrastructure leasing, which contributed ₹126.53 crore during the quarter, representing a 19% year-on-year increase. As reported in the latest financial data, basic and other services revenue rose significantly by 46.5% to ₹69.96 crore, while cellular revenue declined slightly to ₹3.88 crore from ₹4.20 crore a year ago. Total income, including other income, reached ₹274.61 crore during the quarter, with other income surging 121.5% to ₹74.53 crore compared with ₹33.64 crore in the corresponding period last year, reflecting the company's diversified revenue streams and improved operational efficiency.
At the operating level, MTNL reported an EBITDA loss of ₹643 crore compared with an EBITDA loss of ₹699 crore in the year-ago quarter, indicating some improvement in operational performance. The EBITDA loss narrowed by around 8% year-on-year, demonstrating the company's ability to reduce operational losses despite ongoing financial challenges. However, the company faced significant financial headwinds with high finance costs of ₹747.51 crore continuing to weigh on profitability. According to the latest financial data, total expenses remained elevated at ₹1,115.68 crore, primarily due to finance costs and employee benefits of ₹136.57 crore. The debt service coverage ratio remained weak at 0.06 times, highlighting limited capacity to meet debt obligations from operating cash flows.
Statutory auditors O P Bagla & Co LLP and S.L. Chhajed & Co LLP issued a qualified conclusion on the financial statements, citing several key concerns. The auditors highlighted unreconciled balances with BSNL and the Department of Telecommunications, manual billing practices in certain Mumbai and Delhi units due to software downtime affecting revenue accuracy, and a negative net worth of ₹30,801.34 crore. The company has defaulted on bank loan repayments totaling ₹3,119.49 crore, with all bank loans classified as non-performing assets. However, the financials were prepared on a going concern basis, citing continued government support including sovereign guarantee-backed bonds and soft loans for interest servicing.
