M T N L Q1 FY27 Results (NSE: MTNL)
Signal: Loss narrowed
The read
The operating inflection is real but fragile: consolidated EBITDA turned positive at ₹42.16 Cr from ₹-44.13 Cr YoY and EBIT loss narrowed to ₹-95.12 Cr from ₹-189.30 Cr, yet PAT remained a ₹842.35 Cr loss because the standalone finance cost alone was ₹747.51 Cr; infrastructure leasing, not cellular operations, supplied the quarter's ₹101.71 Cr segment profit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹216.89 Cr | 229.9% | N/A |
| EBIT | ₹-95.12 Cr | 49.8% | |
| Net profit | ₹-842.35 Cr | 10.7% | |
| EPS | ₹-13.37 | 10.7% | |
| EBIT margin | 19.4% |
P&L walk
Consolidated revenue was ₹216.89 Cr, +229.9% YoY, and EBITDA turned around to ₹42.16 Cr from ₹-44.13 Cr, but EBIT remained negative at ₹-95.12 Cr and PAT at ₹-842.35 Cr, leaving the operating improvement insufficient against the group's financing and legacy liabilities.
Segments
Infrastructure Leasing drove the operating result with ₹126.53 Cr revenue and ₹101.71 Cr segment profit, while Basic & other Services lost ₹106.87 Cr and Cellular lost ₹95.16 Cr; infrastructure leasing was profitable but the two telecom-related segments remained loss-making.
Key positives
- Consolidated revenue reached ₹216.89 Cr, +229.9% YoY, while standalone revenue rose +287.3% to ₹200.08 Cr.
- EBITDA turned positive at ₹42.16 Cr from ₹-44.13 Cr YoY, and consolidated EBITDA margin was 19.4%.
- Infrastructure Leasing generated ₹126.53 Cr revenue and ₹101.71 Cr segment profit, providing the principal operating support.
- The BSNL SLA recognised ₹34.39 Cr of revenue-sharing income and provides for EBITDA-neutral operation of Delhi and Mumbai telecom activities.
- PAT-to-EPS conversion was clean: both consolidated PAT and EPS losses improved 10.7% YoY.
Key concerns
- PAT remained a ₹842.35 Cr consolidated loss despite positive EBITDA, with standalone finance cost of ₹747.51 Cr versus revenue of ₹200.08 Cr.
- Basic & other Services remained loss-making at ₹106.87 Cr and Cellular remained loss-making at ₹95.16 Cr, showing that core telecom economics have not repaired.
- Net worth was ₹-30,801.34 Cr and paid-up debt capital was ₹26,325.92 Cr, leaving the business dependent on government support and restructuring.
Research and educational content only. Not investment advice.