March 13, 2025 | 10:31 AM IST
MTNL Shares Jump Mahanagar Telephone Nigam Ltd. (MTNL) shares rallied 18% to an intraday high of ₹51.18 during the Thursday trade. The stock since then has risen 50% in the past year as the investors have returned to the scene despite continued financial issues faced by the company.
MNTL Shares Jumps Performance & Market Reaction
MTNL was among the most bought shares at about ₹51.18, trading up 13.90% higher at mid-session to about ₹49.25. The stake, however, still lies far lower than its 52-week high of ₹101.93.
The steep jump comes as government data showed that MTNL earned ₹2,134.61 crore through monetisation of land and building assets. The data was revealed in Parliament by the Union Minister of Communications, as the state-run telecom company moves to monetise its surplus assets.
Monetization of Assets & Financial Position
BSNL and MTNL had generated ₹12,984.86 crore from asset monetization (land, buildings, towers and fiber infrastructure) since 2019. Of this, the earnings of BSNL was ₹2,387.82 crore, while the earnings for MTNL was ₹2,134.61 crore.
These inflows are not sufficient to make MTNL financially viable. Most of the state-run lenders classified the company as a Non-Performing Asset (NPA) in October 2024. Banks have ₹7,925-crore exposure to MTNL, with total dues close to ₹32,000 crore, which includes short- and long-term debt, as per CNBC-TV18.
Financial Performance & Operational Challenges
MTNL for Q3 FY25 reported a net loss of ₹836 crore, marginally lower than the ₹839 crore loss recorded in the corresponding period last year.
Revenue: ₹170 crore, 11.6% lower YoY (compared ₹192.2 crore in Q3 FY24).
EBITDA Loss: ₹128.1 crore, up from ₹125.7 crore in the previous year, it indicates higher cost pressures that have remained unabated.
The more than halved revenue and 10-fold increase in losses show MTNL’s operational challenges in aggressive competition in the telecom industry.
Market Sentiment & Investors Outlook
MTNL has a long-term uncertain financial health, despite the gains today. We have concerns that the business will be able to continue in the long term given the high level of debt burden and ongoing losses of the company. But the government’s continued asset monetization program could give some relief.
While it has experienced volatile price movement and financial stress, traders and investors are watching further developments closely, particularly in terms of government support and restructuring plans.
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