Mahanagar Telephone Nigam Limited (MTNL) AI Stock Analysis

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Mahanagar Telephone Nigam Limited

(NSE:MTNL)

Select Model

Rating:46Neutral

Price Target:INR 26.00▼(-0.38% Downside)

Action:upgraded

Date:11/07/26

The overall score is heavily constrained by the company's dire financial fundamentals, marked by insolvency-level balance sheet distress and persistent unprofitability, which are the most significant factors. A negative P/E ratio further confirms the lack of earnings. While short-term technical indicators point to bullish momentum, this is a secondary factor and does not offset the severe financial risks.

Positive Factors

Revenue and Margin ReboundThe strong 2026 revenue rebound and improved gross and EBITDA margins indicate that demand and operating performance have recently strengthened. If sustained, this recovery could improve the economics of MTNL’s connectivity services and provide a foundation for rebuilding earnings over the coming quarters.

Negative Factors

Negative and Worsening EquityPersistently negative and worsening shareholders’ equity signals substantial accumulated financial strain and leaves MTNL with limited balance-sheet flexibility. This weak capital position can constrain investment, reduce resilience during operating setbacks, and make future funding or restructuring more difficult.

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

Market Cap: INR 16.46B
Dividend Yield: ―
Average Volume (3M): 211.25K
Price to Earnings (P/E): -0.5
Beta (1Y): 1.78
Revenue Growth: 68.07%
EPS Growth: 14.04%
Country: India
Employees: 2,795
Sector: General
Sector Strength: 55
Industry: Telecommunications Services

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. The...

How the Company Makes Money

MTNL makes money mainly by charging customers—retail consumers, small businesses, and enterprises—for telecom connectivity and related services in its licensed service areas (Delhi and Mumbai). Its primary revenue streams have historically included:...

Mahanagar Telephone Nigam Limited Financial Statement Overview

Summary

Financial health is critically distressed. The balance sheet shows deeply negative equity (-₹299.6B) and overwhelming debt (₹354.4B) far exceeding assets, indicating severe insolvency risk. Persistent net losses, despite a recent revenue surge and volatile positive gross margin, are compounded by erratic cash flows. The overall financial position is precarious.

Income Statement

12Very Negative

Balance Sheet

3Very Negative

Cash Flow

10Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	9.75B	9.56B	6.98B	7.99B	9.35B	11.49B
Gross Profit	3.45B	8.64B	-6.20B	-391.70M	7.66B	3.69B
EBITDA	4.21B	4.44B	2.00B	867.20M	1.69B	3.10B
Net Income	-30.06B	-31.07B	-33.28B	-32.68B	-29.15B	-26.03B
Balance Sheet
Total Assets	0	100.76B	102.26B	107.17B	116.44B	123.17B
Cash, Cash Equivalents and Short-Term Investments	7.76B	7.76B	2.10B	1.08B	49.18B	1.49B
Total Debt	0	354.45B	324.41B	301.41B	283.51B	268.20B
Total Liabilities	299.60B	400.35B	371.45B	343.61B	324.99B	309.85B
Stockholders Equity	-299.60B	-299.60B	-269.19B	-236.44B	-208.55B	-186.68B
Cash Flow
Free Cash Flow	-1.16B	1.52B	-20.98B	569.70M	201.70M	6.91B
Operating Cash Flow	-1.15B	1.76B	-20.63B	1.30B	638.50M	7.04B
Investing Cash Flow	47.60M	-2.01B	-415.60M	1.07B	-1.74B	2.04B
Financing Cash Flow	-118.00M	-192.90M	22.00B	-3.19B	1.77B	-9.36B

Mahanagar Telephone Nigam Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price26.10

Price Trends

50DMA24.19Positive

100DMA26.13Negative

200DMA27.82Negative

Market Momentum

MACD0.66Negative

RSI60.70Neutral

STOCH66.51Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MTNL, the sentiment is Positive. The current price of 26.10 is above the 20-day moving average (MA) of 24.03, above the 50-day MA of 24.19, and below the 200-day MA of 27.82, indicating a neutral trend. The MACD of 0.66 indicates Negative momentum. The RSI at 60.70 is Neutral, neither overbought nor oversold. The STOCH value of 66.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MTNL.

Mahanagar Telephone Nigam Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:MTNL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:BHARTIARTL	70Outperform	INR 13.05T	41.26	―	1.14%	17.56%	-20.64%
IN:RAILTEL	63Neutral	INR 82.24B	24.09	―	1.28%	22.56%	5.56%
IN:TATACOMM	60Neutral	INR 497.37B	45.77	―	0.99%	9.08%	-20.04%
IN:IDEA	58Neutral	INR 1.41T	4.01	―	―	4.24%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:TTML	50Neutral	INR 76.07B	24.77	―	―	-0.85%	―
IN:MTNL	46Neutral	INR 16.74B	-0.55	―	―	68.07%	14.04%

* General Sector Average

Performance Comparison

IN:MTNL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:MTNL	Mahanagar Telephone Nigam Limited	26.10	-14.71	-36.05%
IN:BHARTIARTL	Bharti Airtel Limited	2106.40	20.45	0.98%
IN:IDEA	Vodafone Idea Ltd	12.57	1.63	14.90%
IN:RAILTEL	RailTel Corp. of India Ltd.	254.50	-105.18	-29.24%
IN:TATACOMM	Tata Communications Limited	1773.25	-115.17	-6.10%
IN:TTML	Tata Teleservices (Maharashtra) Limited	37.98	-15.77	-29.34%

Mahanagar Telephone Nigam Limited Corporate Events

Brickwork Ratings Upgrades MTNL’s Rs 6,500 Crore Bond Issue to AAA (CE)

Oct 8, 2026

Mahanagar Telephone Nigam Limited disclosed that Brickwork Ratings India has completed a review of its bond issues totaling Rs. 6,500 crore, in line with SEBI disclosure requirements. The rating on these long-term bonds was upgraded from BWR AA+ (CE)...

MTNL AGM Highlights Revival Plan, BSNL Pact and Governance Measures

Sep 30, 2026

Mahanagar Telephone Nigam Limited convened its 40th Annual General Meeting on September 30, 2026 via video and audio conferencing, with 65 members in attendance including the authorised representative of the President of India. The meeting, chaired b...

MTNL shuts trading window ahead of September-quarter results

Sep 14, 2026

Mahanagar Telephone Nigam Limited has announced the closure of its trading window in compliance with SEBI’s Prohibition of Insider Trading Regulations, 2015, ahead of the consideration and approval of its unaudited reviewed financial results for the...

Crisil keeps MTNL’s sovereign-backed bonds at AAA (CE) on negative watch amid payment-structure concerns

Aug 27, 2026

Mahanagar Telephone Nigam Limited has disclosed that Crisil Ratings has maintained its AAA (CE) rating with a ‘watch negative’ status on MTNL’s Rs 6,520 crore of government‑guaranteed bonds and debentures, reflecting continued concern over past lapse...

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 govern...

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’s listing...

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: Nov 07, 2026

Mahanagar Telephone Nigam Limited AI Stock Analysis