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Mahanagar Telephone Nigam Limited (IN:MTNL)
:MTNL
India Market
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Mahanagar Telephone Nigam Limited (MTNL) AI Stock Analysis

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IN:MTNL

Mahanagar Telephone Nigam Limited

(MTNL)

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Neutral 42 (OpenAI - Gpt-5.6Sol)
Rating:42Neutral
Price Target:
₹26.00
▼(-3.85% Downside)
Action:Reiterated
Date:08/26/26
The score is held down primarily by weak financial fundamentals—large ongoing losses, negative equity, and high leverage—despite a 2026 revenue/margin rebound and improved cash flow. Technicals add further pressure with the stock trading below major moving averages and bearish momentum indicators. Valuation offers limited support because negative earnings make P/E less meaningful and no dividend yield is available.
Positive Factors
Revenue and Margin Rebound
The sharp 2026 revenue recovery and improved gross and EBITDA margins indicate stronger operating traction. If sustained, this can improve the economics of MTNL’s telecom services and support better absorption of its fixed network costs.
Negative Factors
Negative Equity and High Leverage
Persistent negative equity and substantial debt materially restrict financial flexibility. The capital structure leaves limited capacity to absorb operating shocks, invest in network improvements or deleverage through internally generated resources.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Rebound
The sharp 2026 revenue recovery and improved gross and EBITDA margins indicate stronger operating traction. If sustained, this can improve the economics of MTNL’s telecom services and support better absorption of its fixed network costs.
Read all positive factors

Mahanagar Telephone Nigam Limited (MTNL) vs. iShares MSCI India ETF (INDA)

Mahanagar Telephone Nigam Limited Business Overview & Revenue Model

Company Description
Mahanagar Telephone Nigam Limited (MTNL), alongside its subsidiary companies, offers a range of telecommunication services across India and Mauritius. Its operations are structured into two main divisions: Basic and Other Services, and Cellular. T...
How the Company Makes Money
MTNL makes money mainly by charging customers for telecom connectivity and related services. Key revenue streams include: (1) Wireline voice services: recurring line rental/subscription fees and usage/call charges for fixed-line telephony, along w...

Mahanagar Telephone Nigam Limited Financial Statement Overview

Summary
Despite a sharp 2026 revenue rebound and improved gross/EBITDA margins, the company remains deeply unprofitable with large recurring net losses. The balance sheet is highly distressed with persistently negative equity and a heavy debt burden, and while 2026 operating/free cash flow turned positive, cash generation has been volatile and appears thin versus leverage.
Income Statement
18
Very Negative
Balance Sheet
8
Very Negative
Cash Flow
22
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue9.75B9.56B6.98B7.99B9.35B11.49B
Gross Profit3.45B8.64B-6.20B-391.70M7.66B3.69B
EBITDA4.21B4.44B2.00B842.80M1.64B3.08B
Net Income-30.06B-31.07B-33.28B-32.68B-29.15B-26.03B
Balance Sheet
Total Assets0.00100.76B102.26B107.17B116.44B123.17B
Cash, Cash Equivalents and Short-Term Investments7.76B50.77B2.10B1.08B49.18B1.49B
Total Debt0.00354.45B324.41B301.41B283.51B268.20B
Total Liabilities299.60B400.35B371.45B343.61B324.99B309.85B
Stockholders Equity-299.60B-299.60B-269.19B-236.44B-208.55B-186.68B
Cash Flow
Free Cash Flow-1.16B1.52B-20.98B569.70M201.70M6.91B
Operating Cash Flow-1.15B1.76B-20.63B1.30B638.50M7.04B
Investing Cash Flow47.60M-2.01B-415.60M1.07B-1.74B2.04B
Financing Cash Flow-118.00M-192.90M22.00B-3.19B1.77B-9.36B

Mahanagar Telephone Nigam Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price27.04
Price Trends
50DMA
28.26
Negative
100DMA
29.32
Negative
200DMA
31.17
Negative
Market Momentum
MACD
-0.42
Negative
RSI
40.27
Neutral
STOCH
28.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MTNL, the sentiment is Negative. The current price of 27.04 is below the 20-day moving average (MA) of 27.09, below the 50-day MA of 28.26, and below the 200-day MA of 31.17, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 40.27 is Neutral, neither overbought nor oversold. The STOCH value of 28.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MTNL.

Mahanagar Telephone Nigam Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
₹11.88T39.181.26%19.63%-18.80%
60
Neutral
₹90.14B25.890.99%20.85%9.07%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
₹1.63T5.213.30%
49
Neutral
₹470.29B50.911.39%8.12%-33.60%
49
Neutral
₹73.13B191.89-7.19%
42
Neutral
₹16.90B-0.5668.07%14.04%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:MTNL
Mahanagar Telephone Nigam Limited
26.55
-17.34
-39.51%
IN:BHARTIARTL
Bharti Airtel Limited
1,878.00
20.18
1.09%
IN:IDEA
Vodafone Idea Ltd
14.95
8.37
127.20%
IN:RAILTEL
RailTel Corp. of India Ltd.
279.00
-53.76
-16.16%
IN:TATACOMM
Tata Communications Limited
1,688.90
144.25
9.34%
IN:TTML
Tata Teleservices (Maharashtra) Limited
36.50
-19.67
-35.02%

Mahanagar Telephone Nigam Limited Corporate Events

MTNL Faces BSE Fine for SEBI Governance Non-Compliance, Seeks Waiver
Aug 26, 2026
Mahanagar Telephone Nigam Limited has disclosed that BSE has imposed fines totaling Rs. 12,66,140 for non-compliance with several SEBI listing regulations relating to board composition and key board committees. The company, which relies on the gov...
MTNL Discloses India Ratings’ Evaluation of Its Bond Issues
Aug 19, 2026
Mahanagar Telephone Nigam Limited has notified the stock exchanges that India Ratings and Research has issued a press release detailing its credit rating on bonds issued by the company, dated August 18, 2026. The disclosure, made under SEBI’...
MTNL Warns of Shortfall in Escrow Funding for Sovereign-Guaranteed Bond Interest
Jul 10, 2026
MTNL has disclosed that it is unable to fund the sixth semi-annual interest payment due on July 20, 2026, for its 7.59% Bond Series VIIIA into the designated escrow account at Bank of India, citing insufficient funds for the required pre-funding. ...
TRAI Fines MTNL for Quality-of-Service Lapse in Wireline Broadband
Jun 9, 2026
MTNL has disclosed that the Telecom Regulatory Authority of India has imposed a financial disincentive of Rs 6,00,000 for contravention of the Standards of Quality of Service regulations for its wireline broadband services for the quarter ending J...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 26, 2026