Tamilnadu Telecommunications Limited has announced its unaudited financial results for the third quarter ended December 31, 2025, revealing continued financial challenges with a net loss of ₹3.46 crores. The optical fiber cable manufacturer, which is a joint venture between TCIL (Government of India Enterprise) and TIDCO (Government of Tamil Nadu Enterprise), has been grappling with operational difficulties for several years.

Financial Performance Overview

The company's financial performance for Q3 FY26 reflects ongoing struggles, with key metrics showing deterioration across multiple parameters.

For the nine-month period ended December 31, 2025, the company reported a net loss of ₹11.20 crores compared to ₹9.95 crores in the corresponding period of the previous year. The company has generated no revenue from operations during these periods, highlighting the severity of its operational challenges.

Balance Sheet Position

The company's financial position has deteriorated significantly, with accumulated losses now exceeding its net worth substantially.

Auditors' Adverse Opinion

Statutory auditors Sundaram & Srinivasan have expressed an adverse opinion on the company's financial statements, raising serious concerns about its ability to continue as a going concern. The auditors highlighted several critical issues:

• The company's accumulated losses of ₹246.99 crores have completely eroded its net worth, resulting in negative equity of ₹190.53 crores
• The factory has remained non-operational since 2017
• Machinery would require major overhauling costs to resume operations
• The company is unable to obtain support for supply of major raw materials from suppliers
• No new orders have been secured to substantiate the going concern assumption

The auditors concluded that the management's use of the going concern basis of accounting is inappropriate given these circumstances.

Revival Initiatives and Strategic Developments

Despite the challenging financial position, the company is actively pursuing several revival strategies:

Strategic Disinvestment: Promoter TCIL has initiated the proposal for sale of its entire stake in TTL through DIPAM as per the revised procedure for strategic disinvestment in CPSEs. DIPAM has provided in-principal approval, and tenders for Transaction Adviser and Legal adviser were floated in April 2025.

Business Diversification: The company is exploring diversification opportunities to sustain in the competitive cable industry and seeking business partners for fresh investment.

Lease Arrangements: A Request for Proposal was published in March 2023 for leasing manufacturing facilities at the Maraimalainagar factory. While a bid was initially accepted and Letter of Award issued in May 2023, TIDCO subsequently advised against proceeding with the lease arrangement, leading to its cancellation.

Operational Challenges

The company faces multiple operational hurdles that have contributed to its current financial distress. The factory at Maraimalainagar has been non-operational since August 2017, and significant investment would be required to restore operations. Additionally, the company experienced theft at its electrical substation in August 2021, with stolen equipment valued at ₹48,970, though the insurance claim was subsequently rejected.

Outlook and Management Commentary

Management remains optimistic about the potential for revival, citing the huge requirement for optical fiber cables in the country. However, they acknowledge that delays in project execution by government clients due to procedural issues have significantly impacted the business. The company continues to anticipate financial support from its holding company TCIL and the Government of India's Department of Telecommunications.

The Board of Directors approved these unaudited results in a meeting held on February 12, 2026, with the financial statements prepared in accordance with Indian Accounting Standards (Ind AS) 34 for interim financial reporting.

Tamilnadu Telecommunications Limited (TTL), a joint venture between TCIL and TIDCO, has reported a significant increase in net loss for the quarter ended September 30, 2025. The company's financial performance continues to deteriorate, reflecting ongoing operational challenges.

Key Financial Highlights

• Net Loss: TTL reported a net loss of Rs. 4.29 crores for Q2 FY2026, compared to a loss of Rs. 3.29 crores in the same quarter last year, representing a 30.40% increase in losses.
• Revenue: The company's revenue for the quarter stood at zero, indicating a complete halt in sales activities.
• Operating Expenses: Operating expenses increased to Rs. 1.40 crores, up from Rs. 1.10 crores in the same quarter last year.
• Interest Costs: Interest expenses rose slightly to Rs. 2.90 crores from Rs. 2.80 crores year-over-year.

Financial Position

The company's financial health continues to deteriorate, as evidenced by the following metrics:

• Earnings Per Share (EPS): The EPS worsened to -Rs. 0.94, compared to -Rs. 0.72 in Q2 FY2025.
• Debt-Equity Ratio: TTL reported a negative debt-equity ratio of -0.20, indicating severe financial distress.

Operational Challenges

Tamilnadu Telecommunications Limited faces significant operational hurdles, as reflected in its financial results:

1. Zero Revenue Generation: The company failed to generate any revenue during the quarter, pointing to severe operational issues or market challenges.
2. Increasing Losses: The widening net loss suggests ongoing difficulties in cost management and the absence of a viable business model.
3. Rising Expenses: Despite no revenue, the company's operating expenses have increased, further straining its financial position.

Management Commentary

While specific management comments were not provided, the company's filing of unaudited financial results with the stock exchanges, as required by SEBI regulations, demonstrates its commitment to regulatory compliance despite the challenging circumstances.

Outlook

The persistent negative financial performance raises serious concerns about Tamilnadu Telecommunications Limited's future viability. The company needs to address its operational challenges, explore new revenue streams, and implement cost-cutting measures to improve its financial health.

Investors and stakeholders should closely monitor the company's future announcements and any potential restructuring plans that may be implemented to turn around its performance.

The full details of the quarterly financial results are available on the stock exchange websites and the company's official website for further scrutiny by interested parties.