MSTC Limited , a state-owned e-commerce company, has reported strong financial performance for the first half of fiscal year 2026, while simultaneously addressing regulatory compliance issues.

Financial Highlights

For the half year ended September 30, 2025, MSTC Limited posted impressive results:

• Total income rose to ₹1,959.62 crore, up 9.31% from ₹1,792.71 crore in the same period last year.
• Profit before tax increased by 12.81% to ₹1,257.90 crore, compared to ₹1,114.97 crore in H1 FY2025.
• Net profit after tax grew by 11.96% to ₹934.72 crore, up from ₹834.81 crore in the previous year.

The company's e-commerce segment continued to be the primary revenue driver, contributing ₹1,871.20 crore to the total income, marking an 18.47% increase from the previous year.

Segment Performance

The e-commerce segment showed robust growth, while the marketing segment experienced a decline. The company's 'others' category, though small, saw significant percentage growth.

Regulatory Compliance Issues

Despite the strong financial performance, MSTC Limited faced regulatory challenges. The company received fines from the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for non-compliance with SEBI listing regulations during the quarter ended June 30, 2025. The violations included:

1. Failure to appoint a woman independent director
2. Non-compliance with the constitution of various committees, including:
   • Audit committee
   • Nomination and remuneration committee
   • Stakeholder relationship committee
   • Risk management committee

The company's board noted that three independent directors were appointed by the administrative Ministry during June 2025, addressing some of these issues. MSTC emphasized that as a Government Company, the power to appoint Independent Directors is vested with the President of India through the administrative Ministry, not with the Board or Company itself.

Remedial Actions

MSTC has taken steps to address the compliance issues:

1. The company is now compliant with the requirement for a woman independent director.
2. Various committee compositions have been brought into compliance.
3. The Board has requested the Ministry of Steel to expedite the appointment of the required number of Independent Directors.
4. MSTC has asked stock exchanges to waive the fines, citing that director appointments are beyond the company's control.

Outlook

While MSTC Limited has demonstrated strong financial growth, the regulatory compliance issues highlight the challenges faced by state-owned enterprises. The company's ability to address these concerns while maintaining its growth trajectory will be crucial for its future performance and investor confidence.

As MSTC continues to focus on its core e-commerce business, which has shown significant growth, the company may need to reassess its marketing segment strategy given the decline in that area. The substantial increase in the 'others' category, albeit from a small base, may also warrant attention as a potential area for future growth.

Investors and stakeholders will likely keep a close eye on how MSTC balances its growth initiatives with regulatory compliance in the coming quarters.

MSTC Limited , a Government of India enterprise, has received a significant nomination from the Director General of Foreign Trade (DGFT) to conduct e-auctions for Gold Tariff Rate Quota (TRQ). This development marks a notable expansion in MSTC's role in facilitating international trade processes.

Key Details of the Nomination

• Nominating Authority: Director General of Foreign Trade, Government of India
• Nomination Basis: Single source, under Rule 194 of the General Financial Rules (GFR), 2017
• Service Scope: Online administration for allocation of Tariff Rate Quota (TRQ) for import of gold bullions and other commodities
• Revenue Model: Transaction fees payable by bidders before bid submission in each e-tender
• Contract Duration: Valid until termination by either party

Implications for MSTC

The nomination positions MSTC as a key player in the administration of gold imports, a critical sector in India's economy. While the exact financial impact remains unquantified at this stage, MSTC's management anticipates a "fair volume of business" from this arrangement.

Service Details

Market Impact

This nomination underscores MSTC's growing role in facilitating transparent and efficient trade processes. As a government enterprise, MSTC's involvement in this critical area of international trade could potentially enhance its market position and revenue streams.

It's important to note that the actual financial impact will depend on the frequency of e-auctions and the number of participating bidders. MSTC's role as an e-auction platform provider means that the revenue will be directly tied to the transaction fees collected from bidders.

As this development unfolds, market participants will likely keep a close eye on how this nomination translates into tangible business growth for MSTC Limited in the coming quarters.