Mahanagar Telephone Nigam Limited (MTNL) is an India-based telecommunication services company and a provider of fixed-line telecommunication services in the two metropolitan cities of Delhi (including NCR) and Mumbai (including Thane district). The company, along with its subsidiaries, also provides telecommunication services in Mauritius. Incorporated in 1986 and headquartered in New Delhi, India, MTNL was established with the goal of delivering world-class telecom services to these major Indian cities. The company achieved 'Navratna' Status in 1997, recognizing its performance and significant contribution to the sector.
As a public sector undertaking, MTNL has been serving the telecommunications needs of India's two major metropolitan areas for nearly four decades. As of December 2024, the Government of India held a substantial 56.25% stake in the company, underscoring its strategic importance.
MTNL operates primarily through two segments: Basic and Other Services, and Cellular Services. The company offers a comprehensive suite of telecommunication services, including fixed telephone services, GSM-based mobile services, CDMA-based mobile services, internet, broadband, Integrated Services Digital Network (ISDN), Fiber to the Home (FTTH), and leased line services.
Beyond traditional telephony, MTNL also provides mobile, voice, roaming, and international long-distance services. The company has expanded its portfolio to include cloud and managed services, remote monitoring, and end-to-end ICT solution services. Furthermore, it offers Wi-Fi, infrastructure sharing, web hosting, emergency communication, and cloud computing services, and operates data centers, outsourcing applications, and skill development programs.
The company faces significant financial challenges, reflected in its recent performance.
For Q3 FY2024-25, MTNL's consolidated net loss reduced slightly to ₹836.07 crore, from a net loss of ₹839.03 crore in Q3 FY2023-24. Revenue from operations, however, saw a decline of 11.53% year-over-year (YoY), totaling ₹170.07 crore for the quarter ended December 31, 2024. The company's total income for Q3 FY2024-25 was ₹339.40 crore, showing a slight increase from ₹326.51 crore in the previous quarter (Q2 FY2024-25) and marginally higher than the ₹335.10 crore reported in Q3 FY2023-24. For the nine-month period ending December 31, 2024, total income stood at ₹1,048.26 crore, an increase from ₹1,019.56 crore in the same period of the previous year.
• Q3 FY2024-25 Consolidated Net Loss: ₹836.07 crore
• Q3 FY2024-25 Revenue from Operations: ₹170.07 crore (down 11.53% YoY)
• Total Income Q3 FY2024-25: ₹339.40 crore
• Total Expenses Q3 FY2024-25: ₹1,175.72 crore (up 0.07% YoY)
• License fees and spectrum charges: ₹15.85 crore (down 3.29% YoY)
• Employee benefit expense: ₹132.78 crore (down 13.64% YoY)
• Finance Cost: ₹727.70 crore (up 5.347% YoY)
• Operating Margin Q3 FY2024-25: Negative 163.28%
• Net Profit Margin Q3 FY2024-25: Negative 491.60%
• Market Capitalization: ₹3,238.20 crore (as of June 17, 2025)
• P/E Ratio: -0.97
• P/B Ratio: -0.14
• 52-Week High: ₹101.93
• 52-Week Low: ₹37.42
MTNL has experienced a challenging period in terms of market performance. Over the last five years, revenue has grown at a yearly rate of -12.76%, significantly underperforming the industry average of 7.48%. Concurrently, the company's market share decreased from 1.7% to 0.6% over the same five-year span, alongside a poor sales growth of -15.5%.
The company faces substantial financial hurdles, including defaults on principal and interest payments totaling ₹8,509 crore to multiple banks as of May 2025. Additionally, contingent liabilities of ₹9,012 crore further pose concerns for investors, highlighting the need for robust financial restructuring and operational improvements.
In response to its financial challenges, MTNL has embarked on an asset monetization drive. The company has successfully raised ₹2,134.61 crore from the sale of land and buildings, and an additional ₹258.25 crore from telecom assets. This initiative aligns with broader governmental efforts to revive financially struggling state-run telecom firms, aiming for optimal utilization of resources while striving to maintain operational efficiency and stabilize its financial position.
The Board of Mahanagar Telephone Nigam Limited confirmed the appointment of Sudhakararao Papa as Director (Technical) with effect from May 9, 2025, via a Circular Resolution dated May 17, 2025. The company continues to uphold its corporate governance structure, ensuring regular board meetings and compliance with all pertinent regulatory requirements.
MTNL remains a significant player in India's telecommunications sector, particularly within its core metropolitan markets. Despite facing substantial financial challenges, the company's strategic focus on asset monetization and operational efficiency improvements demonstrates ongoing efforts to stabilize its financial position and continue serving its customer base.
