Mahanagar Telephone Nigam Limited reported a standalone net loss of ₹3,101.50 crore for FY26, narrowing from ₹3,341.36 crore in FY25, as total income rose to ₹1,468.81 crore from ₹1,279.75 crore.

Financial Performance Overview

The company's standalone revenue from operations declined to ₹887.27 crore in FY26 from ₹1,060.54 crore in FY25, a decrease of ₹173.27 crore. However, other income surged to ₹581.54 crore from ₹219.21 crore, an increase of ₹362.33 crore, driven largely by a gain on sale of property, plant and equipment of ₹410.95 crore. Total expenses fell to ₹4,571.76 crore from ₹4,603.26 crore in the prior year.

The following table summarises the standalone and consolidated financial highlights for FY26:

Segment-wise Performance

MTNL operates across three segments. The table below shows segment revenue for FY26 versus FY25:

Infrastructure leasing, which includes tower rent of ₹51.75 crore and rental income of ₹455.39 crore, contributed ₹507.14 crore in FY26, up from ₹431.59 crore in FY25. Basic and other services revenue fell sharply to ₹364.37 crore from ₹616.18 crore.

BSNL Service Agreement and Revenue Sharing

MTNL and BSNL entered into a Service Agreement on November 22, 2024, under which BSNL assumed responsibility for the maintenance and operational activities of MTNL's telecom services with effect from January 1, 2025. Under this arrangement, BSNL bears capital expenditure and operating expenditure for telecom operations in Delhi and Mumbai. Certain customers were migrated to BSNL with effect from April 1, 2025, with billing and collection handled by BSNL for those customers. Revenue share against migrated customers, amounting to ₹156.51 crore (Delhi Unit ₹69.84 crore and Mumbai Unit ₹86.67 crore), was recognised by MTNL during FY26.

Asset Monetisation

During FY26, MTNL realised ₹419.15 crore through asset monetisation:

Sixteen properties have been identified for monetisation in FY27 through direct sale or transfer to government departments and open-market auction.

Debt and Credit Position

Total financial indebtedness as at March 31, 2026 stood at ₹36,314 crore, comprising bank loans of ₹9,263 crore, sovereign guarantee bonds of ₹24,071 crore, and a loan from the Department of Telecommunications for sovereign guarantee bond interest payments of ₹2,980 crore. All bank loan accounts have been classified as Non-Performing Assets by lender banks. Defaults on term loan principal repayment amounted to ₹2,145.73 crore and on interest repayment amounted to ₹501.45 crore as at March 31, 2026.

Credit ratings reaffirmed during FY26 are summarised below:

Capital Structure and Dividend

The authorised share capital as at March 31, 2026 stood at ₹10,000 crore, comprising 65 crore preference shares of ₹100 each and 350 crore equity shares of ₹10 each. Paid-up equity share capital remained at ₹630 crore, comprising 63 crore equity shares of ₹10 each. The Government of India (President of India) held 56.25% of the equity as at March 31, 2026. No dividend was declared for FY26, as the company has not reported operating profit.

Subsidiaries and Joint Ventures

Key performance highlights of subsidiaries and joint ventures for FY26:

MTL declared a final dividend of ₹0.28 crore for FY26, subject to shareholder approval. MSITSL recommended a dividend of 50% on paid-up share capital for FY26, down from 75% in the prior year.

Going Concern and Auditor's Report

The statutory auditors issued an adverse opinion on the standalone and consolidated financial statements for FY26, citing the fully eroded net worth, continuous net cash losses, current liabilities substantially exceeding current assets, and defaults on bank loan repayments aggregating ₹9,262.53 crore. The auditors also noted a material uncertainty related to going concern. The standalone net worth as at March 31, 2026 was negative at ₹(29,974.84) crore.

The Comptroller and Auditor General of India noted that spectrum usage charges demand of ₹671.56 crore raised by the Department of Telecommunications was not recognised as a liability in the financial statements, resulting in an understatement of expenses and liabilities by that amount.

40th Annual General Meeting

The 40th Annual General Meeting of MTNL is scheduled to be held on Wednesday, September 30, 2026 at 11:30 AM through Video Conferencing/Other Audio Visual Means. The record date for the AGM is September 23, 2026, and the register of members will remain closed from September 24, 2026 to September 30, 2026.

Mahanagar Telephone Nigam has scheduled its 40th Annual General Meeting (AGM) for Wednesday, September 30, 2026. The meeting will be held via video conferencing or other audio-visual means at 11:30 am.

The primary focus of the gathering involves the appointment of two new government nominee directors and the reappointment of an existing director. Shareholders holding shares as of the cut-off date will be eligible to vote.

Key Agenda Items

The AGM notice outlines several ordinary and special business items for shareholder approval:

• Appointment of Government Nominee Directors: Shareholders are asked to approve the appointments of Shri Shyamal Misra and Shri K Balaji as Government Nominee Directors. Both were initially appointed as Additional Directors by the Department of Telecommunications effective July 8, 2026.
• Reappointment of Director: Dr Kalyan Sagar Nippani, Director (HR & EB), retires by rotation and offers himself for reappointment.
• Auditor Remuneration: The Board seeks approval to fix the remuneration of statutory auditors appointed by the Comptroller & Auditor General of India for FY27.
• Cost Auditor Fees: The meeting will ratify the remuneration of M/s R.M. Bansal & Co. as Cost Auditors for FY27. The total fee is fixed at ₹1,12,100, comprising ₹80,000 in professional fees and ₹15,000 for out-of-pocket expenses, plus GST.

Voting and Participation Details

The company has established specific timelines for remote e-voting and register closure:

Shareholders can participate in the AGM through the VC/OAVM facility provided by Central Depository Services (India) Limited. Participation is available on a first-come, first-served basis for up to 1,000 members, excluding large shareholders, promoters, and institutional investors who have unrestricted access.

What the Numbers Show

The appointment of two senior bureaucrats from the Department of Telecommunications as board members highlights the continued direct oversight of the central government in MTNL's strategic direction. Both Shri Shyamal Misra and Shri K Balaji currently hold additional charges within the DoT structure, indicating a consolidation of administrative control during this period.