The board of Mahanagar Telephone Nigam Ltd (MTNL) is set to convene on May 28, 2025, to discuss and potentially approve its financial results for the fourth quarter of the fiscal year 2025. This announcement was made via an exchange filing. The meeting aims to review the audited financial results for the period ending March 31, 2025, emphasizing the transparency of the state-owned telecom provider’s financial operations.
Financial Performance Overview
In the third quarter of FY25, MTNL reported a net loss of ₹836 crore, slightly down from a loss of ₹839 crore in the same quarter last year. This decline in losses signifies ongoing challenges within the telecom sector, as operational revenue dropped by 11.6% year-over-year, falling to ₹170 crore from ₹192.2 crore in Q3 FY24.
- EBITDA Loss: MTNL’s earnings before interest, taxes, depreciation, and amortization (EBITDA) loss increased to ₹128.1 crore, compared to ₹125.7 crore during the previous year.
- Debt Challenges: The company faces significant financial hurdles, including outstanding bank loans totaling ₹8,346.24 crore owed to seven public sector banks.
Rising Debt Commitments
As of March 31, 2025, MTNL’s total debt skyrocketed to ₹33,568 crore. This alarming figure has raised concerns among stakeholders regarding the company’s financial stability. The breakdown of the loan defaults reveals:
- Union Bank of India: ₹3,633.42 crore
- Indian Overseas Bank: ₹2,374.49 crore
- Bank of India: ₹1,077.34 crore
- Punjab National Bank: ₹464.26 crore
- State Bank of India: ₹350.05 crore
- UCO Bank: ₹266.30 crore
- Others: ₹180.3 crore (including principal and interest)
MTNL Stock Performance Insights
Today, MTNL’s share price opened at ₹42.76 on the BSE, fluctuating between a high of ₹43.40 and a low of ₹41.38 during intraday trading. Riyank Arora, a Technical Analyst at Mehta Equities Ltd, noted that the stock is currently showing a sideways trend within the range of ₹40 to ₹46.
- Momentum Indicators: The Relative Strength Index (RSI) is neutral, indicating subdued trading volumes. A breakout above ₹46 or a breakdown below ₹40 will signal the next significant movement.
Future Predictions for Shareholders
Anshul Jain, Head of Research at Lakshmishree Investment and Securities, shared insights into MTNL’s recent performance, highlighting a 63.29% decline over 31 weeks. The stock is forming a rectangle base pattern between ₹40 and ₹56, suggesting that the recent bounce from the lower boundary may indicate selling exhaustion.
- Potential Upside Levels: Investors may look for the stock to reach swing highs of ₹51 and ₹56. A sustained move beyond ₹56 could ignite a new bullish trend.
For those interested in market movements and investment strategies, staying updated on MTNL’s financial developments is crucial. The company’s ongoing challenges underscore the competitive atmosphere in the telecom industry, making it essential for stakeholders to monitor these changes closely.
