NEW DELHI: Shares of Mahanagar Telephone Nigam Ltd (MTNL) surged 18.4% in early trade on Thursday, reaching a high of ₹51.30 on the Bombay Stock Exchange (BSE).
This jump came after the company reported earnings of ₹2,134.61 crore from selling its land and building assets.
According to data presented in Parliament, State-run telecom giants BSNL and MTNL have together generated ₹12,984.86 crore from selling assets like land, buildings, towers, and fiber since 2019. Out of this total, BSNL earned ₹2,387.82 crore.
Minister Sekhar clarified that BSNL and MTNL are only selling assets that are no longer required for their own use in the foreseeable future.
The government has approved this policy, and its impact on the public sector units is being closely monitored.
Minister Sekhar also confirmed that the government has no plans to privatise state-run telecom firms BSNL and MTNL. This statement was made in response to a parliamentary question on Wednesday.
Last month, the government approved an additional capital expenditure plan of ₹69.82 billion (₹800 million) for BSNL. Additionally, ₹60 billion was approved for the 4G network expansion of both MTNL and BSNL, as reported by CNBC TV18 in February.
Despite the positive news, MTNL has faced financial difficulties. In October 2024, MTNL was declared a Non-Performing Asset (NPA) by most government-owned banks. These banks reportedly have an exposure of ₹7,925 crore towards MTNL, while the company’s total dues stand at nearly ₹32,000 crore, including both short- and long-term debt.
In the third quarter of the financial year 2025 (Q3 FY25), MTNL reported a net loss of ₹836 crore, slightly better than the ₹839 crore loss in the same quarter last year. The company’s revenue fell by 11.6% to ₹170 crore compared to ₹192.2 crore in Q3 FY24. Additionally, MTNL’s operating loss (EBITDA) widened to ₹128.1 crore from ₹125.7 crore in the previous year.
On Thursday, MTNL shares were trading 13.90% higher at ₹49.25. However, the stock has seen a significant decline in recent months. Over the past year, MTNL’s stock gained 18.61%, but year-to-date (YTD), it has dropped by 15.66%.
In the last six months, the stock declined by 23.25%, and in the last three months, it fell by 25.95%. Over the past month alone, the share price dropped 12.44%. MTNL’s stock is currently half of its earlier peak price of ₹101.93.
