MTNL Q1 FY27 Net Loss Rs 841 Crore

Revenue from operations: Rs 200.08 crore (Q1 FY27) vs Rs 158.14 crore (Q1 FY26)
Other income: Rs 74.53 crore (Q1 FY27) vs Rs 33.64 crore (Q1 FY26)
Total income: Rs 274.61 crore (Q1 FY27) vs Rs 191.78 crore (Q1 FY26)
Finance cost: Rs 747.51 crore (Q1 FY27) vs Rs 754.33 crore (Q1 FY26)
Net loss: Rs 841.07 crore (Q1 FY27) vs Rs 941.03 crore (Q1 FY26)
Loss per share (basic & diluted): Rs (13.35) (Q1 FY27) vs Rs (14.94) (Q1 FY26)
Net worth: Negative Rs 30,801.34 crore (as of June 30, 2026)

Basic & other services revenue: Rs 69.96 crore, segment result: Rs (106.87) crore
Cellular revenue: Rs 3.88 crore, segment result: Rs (95.16) crore
Infrastructure leasing revenue: Rs 126.53 crore, segment result: Rs 101.71 crore

Debt service coverage ratio: 0.06 times (Q1 FY27) vs (0.06) times (Q1 FY26)
Interest service coverage ratio: 0.06 times (Q1 FY27) vs (0.06) times (Q1 FY26)
Current ratio: 0.36 times (Q1 FY27) vs 0.35 times (Q1 FY26)
Debt-equity ratio: (1.18) times (Q1 FY27) vs (1.20) times (Q1 FY26)
Operating margin: (84.01)% (Q1 FY27) vs (139.33)% (Q1 FY26)
Net profit margin: (420.36)% (Q1 FY27) vs (595.05)% (Q1 FY26)

Government of India providing loan of Rs 3,657.14 crore for payment of interest on Sovereign Guarantee Bonds
Income tax dispute under section 80IA: Provision of Rs 375.96 crore retained, contingent reserve of Rs 243.22 crore created
Arbitration award against company: Rs 160 crore with 6% interest p.a. from October 21, 1993, matter pending in Delhi High Court
Service Level Agreement with BSNL effective January 1, 2025: Entire telecom operations in Delhi and Mumbai run by BSNL
Amount recoverable from BSNL: Rs 6,008.75 crore, payable to BSNL: Rs 2,047.70 crore (net recoverable Rs 3,961.05 crore subject to reconciliation)
Amount recoverable from DoT: Rs 690.41 crore, payable to DoT: Rs 1,118.69 crore (net payable Rs 428.28 crore subject to reconciliation)
Deficit in various trusts: Gratuity Trust Rs 76.81 crore (since 2016), Leave Encashment Rs 14.45 crore (since 2024), GPF Trust Rs 123.00 crore (since 2019)
Default in bank loan repayment: Rs 3,119.49 crore (Rs 2,196 crore principal + Rs 1,701 crore interest), all accounts become NPA
Total financial indebtedness: Rs 37,223 crore (bank loans Rs 9,495 crore + SG bonds Rs 24,071 crore + DoT loan Rs 3,657 crore)

Statutory auditors issued qualified conclusion citing 16 areas of concern:

Revenue recognition based on BSNL information without independent verification
Unreconciled balances with BSNL (Rs 3,961.05 crore) and DoT (Rs 428.28 crore)
Incomplete balance confirmations and reconciliations with various parties
Unlinked credit of Rs 40.45 crore from subscribers
Delayed capitalization of Property, Plant and Equipment
Non-recognition of liability for 2G spectrum charges (contingent liability Rs 455.15 crore)
Non-payment of GST on recovered electricity charges
Inadequate Expected Credit Loss provisioning on financial assets
Non-compliance with Ind AS 116 on leases
Manual billing practices in certain units due to software downtime
No impairment testing on 3G spectrum license (carrying value Rs 690.27 crore)
Unreconciled bank accounts
Non-recognition of penal guarantee fees (Rs 352.30 crore) as provision
Deferral of income recognition from Ministry of Youth Affairs and Sports (Rs 11.67 crore)
Non-recognition of rental income from BSNL property dispute (Rs 7.48 crore for quarter, Rs 67.35 crore cumulative)

Auditors highlighted going concern issues due to: