Mahanagar Telephone Nigam Limited (MTNL) AI Stock Analysis

• Market Cap: ₹26.89B
• Dividend Yield: N/A
• Average Volume (3M): 288.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -25.93%
• EPS Growth: -9.67%
• Country: IN
• Employees: 3,309
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): -14.97
• Shares Outstanding: 630,000,000
• 10 Day Avg. Volume: 287,614
• 30 Day Avg. Volume: 288,721
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹43.00
• Price Target Upside: 0.73% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: ₹43.00 ▲(0.73% Upside)

The overall stock score is heavily impacted by the company's poor financial performance, characterized by persistent losses, declining revenues, and high leverage. Technical analysis indicates a bearish trend, further weighing down the score. Valuation metrics are unfavorable due to a negative P/E ratio and lack of dividend yield, reflecting the company's financial instability and unattractiveness as an investment.

Mahanagar Telephone Nigam Limited Business Overview & Revenue Model

Company Description

Mahanagar Telephone Nigam Limited, together with its subsidiaries, provides telecommunication services in India and Mauritius. It operates in two segments, Basic and Other Services; and Cellular. The company offers basic telephony, broadband, and mobile services. It also provides cloud services, Wi-Fi solutions, e-governance projects, managed services, turnkey ICT solutions, GIS based services, capacity building and skill development services, etc.; and mobile, international long distance, and Internet services under the CHILL brand. The company was founded in 1882 and is based in New Delhi, India.

How the Company Makes Money

MTNL generates revenue through multiple streams primarily centered around its telecommunications services. The company's core revenue sources include fixed-line telephony services, mobile services (both prepaid and postpaid), and broadband internet services. Fixed-line services involve charges for installation, monthly rentals, and call tariffs. Mobile services generate income through subscriptions, call charges, data usage, and value-added services. Broadband services contribute through monthly subscription fees for internet connectivity. Additionally, MTNL has entered into partnerships and collaborations with other telecom operators and entities to offer leased line services, international long-distance services, and infrastructure sharing, further enhancing its revenue streams. The company also benefits from government support and initiatives aimed at expanding telecom accessibility, which positively influences its financial performance.

Mahanagar Telephone Nigam Limited Financial Statement Overview

Summary

Mahanagar Telephone Nigam Limited is facing significant financial challenges. The income statement reveals persistent losses and declining revenues. The balance sheet exhibits high leverage with negative equity, suggesting potential solvency issues. Cash flows are strained, with negative operating and free cash flows. The company needs to address cost inefficiencies, improve revenue streams, and manage its debt load to stabilize its financial position.

Income Statement

The company has consistently reported negative net income, indicating persistent losses. Gross profit margins are negative, signaling cost inefficiencies or pricing issues. Revenue has been declining over the years, with the most recent TTM showing a sharp drop compared to previous periods. EBITDA margin is positive in the latest period, but EBIT remains negative, indicating high depreciation and amortization costs. Overall, the income statement reflects severe profitability challenges and declining sales.

Balance Sheet

The balance sheet is concerning with negative stockholders' equity, indicating liabilities significantly exceed assets. The debt-to-equity ratio is not computable due to negative equity, but total debt has been rising, posing a leverage risk. The company’s equity ratio is negative, suggesting financial instability. Continuous increases in liabilities and decreasing asset base indicate financial distress.

Cash Flow

Cash flow from operations is negative, highlighting operational struggles in generating cash. Free cash flow is also negative, though there is a slight improvement in the latest TTM compared to previous years. The operating cash flow to net income ratio is not applicable due to negative figures. High financing cash flows indicate reliance on external funding. Overall, cash flows signal liquidity issues, but there are minor improvements in free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.37B	6.98B	7.99B	11.49B	9.35B	13.88B
Gross Profit	-1.37B	-6.20B	-391.70M	3.69B	7.66B	7.29B
EBITDA	2.32B	2.00B	-1.14B	3.08B	1.64B	5.39B
Net Income	-32.84B	-33.28B	-32.68B	-26.03B	-29.15B	-24.61B
Balance Sheet
Total Assets	0.00	102.26B	107.17B	123.17B	116.44B	133.75B
Cash, Cash Equivalents and Short-Term Investments	667.30M	2.10B	1.36B	1.49B	49.18B	1.65B
Total Debt	0.00	324.41B	301.41B	268.20B	283.51B	256.00B
Total Liabilities	252.88B	371.45B	343.61B	309.85B	324.99B	294.20B
Stockholders Equity	-252.88B	-269.19B	-236.44B	-186.68B	-208.55B	-160.45B
Cash Flow
Free Cash Flow	0.00	-20.98B	569.70M	6.91B	201.70M	-3.24B
Operating Cash Flow	0.00	-20.63B	1.30B	7.04B	638.50M	-2.25B
Investing Cash Flow	0.00	-415.60M	1.07B	2.04B	-1.74B	-2.59B
Financing Cash Flow	0.00	22.00B	-3.19B	-9.36B	1.77B	4.14B

Mahanagar Telephone Nigam Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MTNL, the sentiment is Negative. The current price of 42.69 is below the 20-day moving average (MA) of 44.38, below the 50-day MA of 45.37, and below the 200-day MA of 46.85, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 34.99 is Neutral, neither overbought nor oversold. The STOCH value of 7.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MTNL.

Mahanagar Telephone Nigam Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HATHWAY	67 Neutral	25.12B	23.88	2.11%	―	4.19%	10.32%
DEN	66 Neutral	16.02B	7.67	5.53%	―	-5.30%	-4.03%
SATINDLTD	66 Neutral	9.54B	19.02	7.58%	0.36%	19.70%	-75.69%
GTLINFRA	44 Neutral	19.22B	-2.12	14.68%	―	-0.38%	-15.94%
MTNL	39 Underperform	₹26.89B	―	―	―	-25.93%	-9.67%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Mahanagar Telephone Nigam Limited Corporate Events

MTNL Fined by TRAI for Service Quality Contravention

MTNL has been fined Rs 1,00,000 by the Telecom Regulatory Authority of India (TRAI) for not adhering to the Standards of Quality of Service for Basic Telephone Service and Cellular Mobile Telephone Service Regulations for the quarter ending June 2024. Despite the penalty, the company stated that there is no material impact on its financial, operational, or other activities.

MTNL Confirms Funding for Bond Interest Payment

MTNL has announced the successful funding of the third semi-annual interest payment for its Bond Series VIIID in an escrow account at the Bank of India. This move ensures compliance with SEBI regulations and reflects MTNL’s commitment to maintaining financial obligations, potentially reinforcing stakeholder confidence.

MTNL Faces Fines for SEBI Regulation Non-Compliance

MTNL has been fined by the NSE and BSE for non-compliance with several SEBI regulations related to board composition and committee constitutions, including the absence of a woman director. The company is addressing these issues by coordinating with the government for the appointment of additional independent directors and is seeking a waiver for the imposed fines.

MTNL Releases Q1 2025 Financial Results

MTNL announced the publication of its unaudited standalone and consolidated financial results for the quarter ending June 30, 2025, which were approved by the Board of Directors on August 13, 2025. The financial results have been made available on the company’s website, reflecting MTNL’s commitment to transparency and regulatory compliance, potentially impacting investor confidence and market positioning.

MTNL Defaults on INR 8,659 Crore Bank Payments

Mahanagar Telephone Nigam Limited (MTNL) has announced a default in the payment of principal and interest to several banks, including Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab and Sind Bank, and Indian Overseas Bank. The total outstanding amount is INR 8,659 crore, with significant overdue amounts in both principal and interest. This default could have significant implications for MTNL’s financial stability and its relationships with financial institutions, potentially affecting its operations and market position.