Mahanagar Telephone Nigam Limited (MTNL) AI Stock Analysis

• Market Cap: ₹21.41B
• Dividend Yield: N/A
• Average Volume (3M): 185.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• 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: 40 Underperform
• Price Target: ₹32.00 ▼(-11.33% Downside)

The score is primarily driven down by weak financial performance (losses, negative equity, and negative operating/free cash flow). Technicals add caution given price below key moving averages and negative MACD, while valuation provides limited support because the negative P/E reflects unprofitability and there is no dividend yield data.

Positive Factors

Government ownership

State ownership provides a durable backstop via policy support, access to government processes and potential capital or regulatory relief. This structural linkage can sustain operations through distress periods and preserve continuity of metro telecom services over the medium term.

Metro service area franchise

Licensed focus on Delhi and Mumbai offers a concentrated, high-demand franchise with structural advantages: denser enterprise and consumer demand, entrenched fixed-line and broadband relationships, and higher revenue potential per customer than rural markets.

Recurring revenue streams

A business built on subscriptions and enterprise contracts creates predictable recurring cash inflows. If operational efficiency and service quality improve, these sticky revenue sources can underpin recovery and steady cash generation over multiple quarters.

Negative Factors

Persistent net losses

Ongoing net losses and falling revenues erode retained capital and restrict reinvestment. Without a sustained revenue turnaround or cost restructuring, profitability deficits will limit ability to modernize networks or compete, threatening long-term viability.

Negative equity and rising leverage

Negative shareholders' equity signals liabilities exceed assets, increasing solvency and refinancing risk. Rising debt against negative equity narrows financial flexibility, raises refinancing and covenant risks, and could force restructuring or increased government intervention.

Negative operating and free cash flow

Persistent negative OCF and FCF mean the company cannot internally finance operations or capex, forcing dependence on external funding. This undermines the ability to invest in network upgrades and maintain service levels, weakening competitive position long-term.

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

Financial statements indicate severe weakness: persistent net losses and declining revenue, negative stockholders’ equity with rising debt (solvency risk), and negative operating and free cash flow suggesting ongoing liquidity pressure.

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: Negative
• RSI: Neutral
• STOCH: Neutral

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 above the 20-day moving average (MA) of 32.67, above the 50-day MA of 35.26, and below the 200-day MA of 42.78, indicating a bearish trend. The MACD of -1.33 indicates Negative momentum. The RSI at 41.65 is Neutral, neither overbought nor oversold. The STOCH value of 45.86 is Neutral, 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	₹9.05B	18.36	―	0.35%	26.49%	7.30%
DEN	60 Neutral	₹13.43B	7.15	―	―	-3.51%	-14.31%
HATHWAY	60 Neutral	₹18.82B	18.09	―	―	3.88%	-3.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
MTNL	40 Underperform	₹21.41B	-0.55	―	―	-21.58%	-8.54%
GTLINFRA	39 Underperform	₹12.94B	-1.46	―	―	2.19%	-7.20%

Mahanagar Telephone Nigam Limited Corporate Events

MTNL Discloses Rs 3,337 Crore Loan Default Amid Rs 35,851 Crore Total Debt Load

MTNL has disclosed that, in compliance with SEBI’s disclosure norms on loan defaults, it has outstanding loans and revolving facilities from banks and financial institutions totaling Rs 9,036 crore as of December 31, 2025. Of this amount, Rs 3,337 crore is in default, comprising Rs 2,095 crore of principal and Rs 1,242 crore of interest, while the company reported no outstanding or defaulted unlisted debt securities such as NCDs or NCRPS for the period. The company’s total financial indebtedness, including bank loans, sovereign-guaranteed bonds of Rs 24,071 crore and a Rs 2,744 crore loan from the Department of Telecommunications to service bond interest, stands at Rs 35,851 crore, underscoring a heavy debt burden and ongoing stress on its balance sheet that is material for lenders, investors and regulators monitoring MTNL’s financial health.

MTNL Reports Status of Special Window Physical Share Transfer During December 2025

MTNL has informed the stock exchanges that, pursuant to a recent Securities and Exchange Board of India (SEBI) circular on a special window for re-lodgement of transfer requests of physical shares, it has received a status report from its Registrar and Share Transfer Agent, Beetal Financial & Computer Services. The report shows that during December 2025 there was one physical share transfer request re-lodged under the special window, which was processed and approved with no rejections, taking an average of nine days to complete; this disclosure underscores MTNL’s compliance with SEBI’s framework aimed at facilitating legacy physical share transfers and providing transparency to investors regarding the handling of such requests.

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.