Mahanagar Telephone Nigam Limited has reported its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The company recorded a net loss of ₹3,102.94 crore for the fiscal year 2025-26, compared to a net loss of ₹3,323.51 crore in the previous year. Revenue from operations for the year stood at ₹817.27 crore, while total income was ₹1,279.75 crore. On a consolidated basis, Q4 net loss stood at ₹306.95 crore against a loss of ₹827.88 crore in the same period of the previous year, while Q4 consolidated revenue came in at ₹370.51 crore compared to ₹275.42 crore year-on-year.

Financial Performance

For the quarter ended March 31, 2026, the company reported a standalone net loss of ₹304.46 crore, with revenue from operations at ₹350.05 crore. The finance cost for the full year was ₹2,982.95 crore, reflecting the significant debt burden carried by the company. The total expenses for the year amounted to ₹4,382.21 crore. The following table summarises the annual standalone financial performance:

The consolidated Q4 performance showed an improvement year-on-year, with net loss narrowing to ₹306.95 crore from ₹827.88 crore, and revenue rising to ₹370.51 crore from ₹275.42 crore in the corresponding period of the previous year.

Board Decisions

The Board of Directors, in its meeting held on May 21, 2026, approved the audited standalone and consolidated financial results. Additionally, the Board appointed M/s. R.M. Bansal & Co. as the Cost Auditor for the financial year 2026-27 at a remuneration of ₹1,12,100, including GST.

In a key management change, the Board appointed Shri Vasudev Singh, GM (Finance) MTNL CO, as the new Chief Financial Officer (CFO) and Key Managerial Personnel (KMP) effective May 21, 2026. He succeeds Shri Anirudh Prasad Singh, who ceased to be the CFO.

Auditor's Report

The statutory auditors, O.P. Bagla & Co. LLP and S.L. Chhajed & Co. LLP, issued an adverse opinion on the standalone and consolidated financial results. The auditors highlighted that the company's net worth has been fully eroded and it has incurred net cash losses during the current and previous years. Current liabilities substantially exceeded current assets as of the balance sheet date.

The report noted a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern. This is despite the Union Cabinet's approval of a revival plan involving debt restructuring, asset monetization, and a potential merger with BSNL. The auditors also cited non-compliance with certain accounting standards and pending reconciliations with BSNL and the Department of Telecommunications (DoT).

Mahanagar Telephone Nigam Limited has informed the stock exchanges that the funding of the designated ESCROW Account maintained in Bank of India for the payment of the 7th semi-annual interest on its 8.00% MTNL Bond Series VII A (INE153A08105) has been successfully completed on May 12, 2026. The interest is due on May 15, 2026. This update follows the company's earlier disclosure dated May 05, 2026, wherein it had reported its inability to fund the ESCROW Account due to insufficient funds. The filing was made in compliance with Regulation 30 & 51 of the SEBI (LODR) Regulations, 2015.

Background: Earlier Funding Shortfall

In its earlier communication dated May 05, 2026, MTNL had disclosed that it was unable to meet the funding obligation under the Structured Payment Mechanism outlined in the Tri-Partite Agreement (TPA) signed between MTNL, the Department of Telecommunications (DoT), the Ministry of Communications, and Beacon Trusteeship Limited. Under this mechanism, the company is mandated to fund the semi-annual interest into the ESCROW Account 10 days before the due date. The company had confirmed at the time that it could not meet this obligation due to a lack of funds.

Sovereign Guarantee Provisions

All bonds issued by MTNL are Sovereign Guaranteed Bonds by the Government of India. As per the TPA provisions, if MTNL fails to pay the principal or interest on the bonds, the Sovereign Guarantee is invoked by the Debenture Trustee, upon which the Government of India is obliged to make the payment to MTNL to cover the default. These Tripartite Agreements were entered into between the Government of India, the Debenture Trustee, and MTNL, and were filed with the BSE at the time the bonds were listed.

Bond and Filing Details

The following table summarizes the key details of the bond series and the latest regulatory filing:

With the ESCROW Account now adequately funded, MTNL has requested the stock exchanges to take the updated information on record. The successful funding ahead of the May 15, 2026 due date resolves the concern raised in the earlier disclosure regarding a potential shortfall in meeting the bond interest obligation.