MSTC Limited has become the L1 bidder for a tender issued by Coal India Limited for the appointment of an External Service Provider for conducting Linkage Auction for Non-Regulated Sector (NRS), according to a regulatory disclosure filed with stock exchanges.

Contract Details

The company disclosed to BSE and NSE that it has secured the top bidder position for Coal India's tender hosted on the Government e-Marketplace (GeM) portal. The contract involves providing comprehensive services for NRS linkage auctions through MSTC's platform for a three-year period.

Service Scope

Under the contract terms, MSTC Limited will be responsible for providing the complete range of associated services for NRS linkage auctions. This includes conducting auctions and executing agreements through the MSTC platform, covering the entire process from initiation to completion.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the promoter group has no interest in Coal India Limited, and the contract does not fall within related party transactions.

Business Implications

This development strengthens MSTC's position as a leading e-commerce and auction service provider in the public sector. The three-year contract with Coal India Limited, one of India's largest coal mining companies, represents a significant business opportunity for MSTC in expanding its auction services portfolio in the coal sector.

MSTC Limited conducted its Q3 FY26 earnings conference call on February 12, 2026, where management outlined the company's strong performance and strategic initiatives for future growth. The Government of India enterprise demonstrated continued momentum with double-digit growth across key metrics and announced several new business ventures.

Financial Performance and Growth Momentum

Chairman and Managing Director Manobendra Ghoshal highlighted the company's ability to maintain momentum from the previous two quarters, achieving nearly double-digit growth on total revenue and EBITDA year-on-year on a nine-month basis. Key financial highlights include:

The e-commerce segment remained the primary growth driver, contributing ₹21,623.00 lakhs in nine months compared to ₹19,791.00 lakhs in the previous year, representing a 9.26% growth.

Strategic Business Initiatives

MSTC announced several key developments that position the company for future growth:

EPR Trading Exchange

The company is developing India's first exchange for trading Extended Producer Responsibility (EPR) certificates on behalf of the Central Pollution Control Board (CPCB). The platform is in advanced stages with trading expected to begin in the coming fiscal year. Five categories of materials have been identified initially, with three to four additional categories expected to be added over the next two years.

Gold Bullion Allocation Platform

MSTC successfully completed the first tranche of gold bullion allocation through its electronic platform developed for the Directorate General of Foreign Trade (DGFT) for transparent allocation of tariff rate quotas. Further events have been scheduled by DGFT.

Travel Business Platform

The company is preparing to launch a unified travel booking platform by April 2026, targeting both government and private sectors (B2B and B2C). The platform aims to provide seamless and responsive booking experiences as a key differentiator.

Operational Highlights and Business Developments

Director Commercial Bhanu Kumar outlined several operational achievements:

The company also signed agreements with Mata Vaishno Devi Shrine Board for precious metals sales and completed sand block allocation for Chhattisgarh using a new methodology.

Joint Venture Performance Improvement

Mahindra MSTC Recycling Private Limited (MMRPL) showed sequential improvement with net losses reducing quarter-over-quarter. Key improvements include:

• Closure of high-cost Noida unit and opening of new facility at Kalyan, Maharashtra
• Improved inventory controls and OEM-driven volume increases
• Share of loss reduced from ₹1.65 lakhs in Q2 to ₹1.05 lakhs in Q3

Future Outlook and Investment Plans

Management expressed optimism about the EPR trading exchange contributing significantly to revenue growth from the next financial year. The company completed construction of its corporate office at World Trade Center, New Delhi, representing a major capital investment of approximately ₹150.00 lakhs to enhance business development capabilities.

MSTC maintains its asset-light business model with CAPEX primarily focused on end-of-life replacement of hardware and software infrastructure. The company follows DIPAM guidelines for dividend distribution, maintaining a minimum payout of 30% of PAT or 4% of net worth, whichever is higher.