Mahanagar Telephone Nigam Ltd (MTNL) reported a standalone net loss of Rs 841.07 crore for the quarter ended June 30, 2026, narrowing 10.6% from Rs 941.03 crore a year earlier, according to its August 12 BSE filing. The Board approved the unaudited reviewed financial results at its meeting in New Delhi.

Revenue from operations increased 26.5% year on year to Rs 200.08 crore from Rs 158.14 crore. Total income rose 43.2% to Rs 274.61 crore from Rs 191.78 crore. The loss before tax was Rs 841.07 crore, compared with Rs 941.03 crore in the year-ago quarter.

Standalone metric Q1 FY27 Q1 FY26 YoY change
Revenue from operations Rs 200.08 crore Rs 158.14 crore Up 26.5%
Total income Rs 274.61 crore Rs 191.78 crore Up 43.2%
Loss before tax Rs 841.07 crore Rs 941.03 crore Narrowed 10.6%
Net loss after tax Rs 841.07 crore Rs 941.03 crore Narrowed 10.6%
Loss per share Rs 13.35 Rs 14.94 Narrowed 10.6%

Infrastructure leasing remains profitable

Infrastructure leasing generated revenue of Rs 126.53 crore and a segment result of Rs 101.71 crore. Basic and other services recorded revenue of Rs 69.96 crore and a segment loss of Rs 106.87 crore, while cellular revenue stood at Rs 3.88 crore with a segment loss of Rs 95.16 crore.

Finance cost was Rs 747.51 crore. MTNL disclosed paid-up debt capital of Rs 26,325.92 crore and negative net worth of Rs 30,801.34 crore as of June 30. It also said defaults on bank instalments and interest totalled Rs 3,119.49 crore, resulting in all bank loan accounts being classified as non-performing assets.

Management continued to prepare the accounts on a going-concern basis, citing government support, the operating arrangement with BSNL and ongoing asset monetisation. Under its service agreement, BSNL has run MTNL's Delhi and Mumbai telecom operations since January 1, 2025. MTNL recognised Rs 34.39 crore as revenue share during the quarter.

Auditors issue qualified conclusion

The joint statutory auditors issued a qualified conclusion. They said the underlying BSNL information used to determine the Rs 34.39 crore revenue share could not be independently verified.

The report also flagged unreconciled balances, including net recoverable dues of Rs 3,961.05 crore from BSNL and net payable dues of Rs 428.28 crore to the Department of Telecommunications. Other qualifications covered unlinked subscriber receipts, capitalisation timing, expected credit-loss assessment, lease accounting and manual billing in certain Delhi and Mumbai units.

MTNL reported a Rs 13.49 crore expected credit-loss provision during the quarter for certain operator dues and other recoverables outstanding for more than three years. The company also disclosed Rs 3,657.14 crore of government loans outstanding for servicing interest on sovereign-guaranteed bonds.

Source: BSE corporate announcement.