Mahanagar Telephone Nigam Limited (MTNL) AI Stock Analysis

• Market Cap: ₹21.67B
• Dividend Yield: N/A
• Average Volume (3M): 185.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: -21.58%
• EPS Growth: -8.54%
• Country: IN
• Employees: 3,309
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): -15.24
• Shares Outstanding: 630,000,000
• 10 Day Avg. Volume: 108,092
• 30 Day Avg. Volume: 185,097
• PEG Ratio: -0.47
• Price to Book (P/B): -0.11
• Price to Sales (P/S): 4.10
• P/FCF Ratio: -1.36
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: ₹37.00 ▲(2.52% Upside)

The overall stock score is heavily impacted by severe financial challenges, including persistent losses, high leverage, and negative cash flows. Technical indicators suggest a bearish market sentiment, with the stock trading below key moving averages and momentum indicators pointing to oversold conditions. The valuation is concerning due to a negative P/E ratio and lack of dividends, reflecting financial distress and limited investor appeal.

Positive Factors

Government Support

Being state-owned, MTNL may receive government support in terms of policy and financial backing, which can provide stability and potential for recovery.

Service Diversification

A diversified service offering allows MTNL to cater to various customer needs, potentially stabilizing revenue streams despite market challenges.

Strategic Partnerships

Collaborations with tech providers can lead to improved service quality and expanded reach, aiding long-term competitiveness and market position.

Negative Factors

Declining Revenue

Persistent revenue decline indicates challenges in maintaining market share and competitiveness, affecting long-term financial health.

High Leverage

High leverage and negative equity suggest financial instability, limiting MTNL's ability to invest in growth and modernization efforts.

Negative Cash Flow

Negative cash flow from operations indicates difficulties in sustaining day-to-day operations, impacting long-term viability and investment capacity.

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 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.80B	6.98B	7.99B	9.35B	11.49B	13.88B
Gross Profit	-5.81B	-6.20B	-391.70M	7.66B	3.69B	-5.09B
EBITDA	700.00M	2.00B	842.80M	1.64B	3.08B	5.39B
Net Income	-34.97B	-33.28B	-32.68B	-29.15B	-26.03B	-24.61B
Balance Sheet
Total Assets	0.00	102.26B	107.17B	116.44B	123.17B	133.75B
Cash, Cash Equivalents and Short-Term Investments	2.10B	2.10B	1.08B	49.18B	1.49B	3.20B
Total Debt	0.00	324.41B	301.41B	283.51B	268.20B	256.00B
Total Liabilities	269.19B	371.45B	343.61B	324.99B	309.85B	294.20B
Stockholders Equity	-269.19B	-269.19B	-236.44B	-208.55B	-186.68B	-160.45B
Cash Flow
Free Cash Flow	0.00	-20.98B	569.70M	201.70M	6.91B	-3.24B
Operating Cash Flow	0.00	-20.63B	1.30B	638.50M	7.04B	-2.25B
Investing Cash Flow	0.00	-415.60M	1.07B	-1.74B	2.04B	-2.59B
Financing Cash Flow	0.00	22.00B	-3.19B	1.77B	-9.36B	4.14B

Mahanagar Telephone Nigam Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.09
• 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 36.09 is below the 20-day moving average (MA) of 36.20, below the 50-day MA of 38.05, and below the 200-day MA of 43.69, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 31.69 is Neutral, neither overbought nor oversold. The STOCH value of 10.24 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
SATINDLTD	61 Neutral	₹9.11B	18.49	―	0.35%	26.49%	7.30%
DEN	60 Neutral	₹14.78B	7.70	―	―	-3.51%	-14.31%
HATHWAY	60 Neutral	₹21.42B	21.94	―	―	3.88%	-3.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
GTLINFRA	39 Underperform	₹14.99B	-1.69	―	―	2.19%	-7.20%
MTNL	38 Underperform	₹21.67B	-0.61	―	―	-21.58%	-8.54%

Mahanagar Telephone Nigam Limited Corporate Events

MTNL Extends Additional Charge of Director (HR & EB) Role for BSNL Executive

MTNL has announced that the Department of Telecommunications has extended the additional charge of the post of Director (HR & EB) at MTNL assigned to Dr. Kalyan Sagar Nippani, who is Director (HR) at state-owned peer Bharat Sanchar Nigam Limited, for a further three months from 1 January 2026 to 31 March 2026 or until further orders, subject to approval by the Appointments Committee of the Cabinet. The move indicates a continued reliance on shared senior management resources between MTNL and BSNL and provides short-term continuity in MTNL’s human resources and enterprise business leadership while the government finalizes longer-term leadership arrangements for the company.

MTNL Announces Trading Window Closure Ahead of Financial Results

Mahanagar Telephone Nigam Limited (MTNL) has announced the closure of its trading window in compliance with SEBI’s insider trading regulations. This closure is in place to prevent insider trading as the company prepares to release its unaudited financial results for the quarter ended December 31, 2025. The trading window will remain closed from January 1, 2026, until 48 hours after the financial results are declared, affecting designated persons and their immediate relatives, ensuring that no trades occur based on unpublished price-sensitive information.

MTNL Faces Fines for Board Composition Non-Compliance

MTNL has been fined by both the NSE and BSE for non-compliance with Regulation 17(1) of SEBI (LODR) Regulations, 2015, which pertains to the composition of the Board. The fines amount to Rs. 5,42,800, including GST. MTNL has indicated that the appointments of Independent Directors, including a woman director, are managed by the Department of Telecommunications, and the company is seeking a waiver of these fines. The financial impact of the fines on MTNL’s operations is not considered material.

MTNL’s Credit Rating Remains on Negative Watch Amid Financial Challenges

Mahanagar Telephone Nigam Limited (MTNL) has received a credit rating update from Crisil Ratings Limited, which continues to place its long-term debt instruments on ‘Rating Watch with Negative Implications’. This follows previous issues with adherence to the structured payment mechanism for government-guaranteed bonds, despite recent improvements in compliance. The company’s financial performance has been impacted by a decline in operating revenue, attributed to a service agreement with Bharat Sanchar Nigam Ltd (BSNL) that led to customer migration. The rating remains supported by the Government of India’s guarantee and a trustee-administered payment mechanism, but further non-adherence could lead to a downgrade.

MTNL Extends CMD Charge to BSNL’s A. Robert J. Ravi

Mahanagar Telephone Nigam Limited (MTNL) has announced the extension of the additional charge of the post of Chairman and Managing Director (CMD) to Shri A. Robert J. Ravi, who is also the CMD of Bharat Sanchar Nigam Limited (BSNL). This extension is for a period of three months starting from October 15, 2025, until January 14, 2026, or until a regular appointment is made. This decision, subject to the approval of the Appointments Committee of the Cabinet, highlights the ongoing interim management strategy at MTNL, reflecting the company’s current operational dynamics and its alignment with the Department of Telecommunications’ directives.