MTNL Reports Strong Cash Flow Amid Declining Sales and Financial Challenges

Mahanagar Telephone Nigam Limited (MTNL), a small-cap player in the telecom services industry, has recently undergone a financial trend adjustment reflecting its performance in the quarter ending September 2025. The company reported a notable operating cash flow of Rs 322.17 crore, marking a strong operational efficiency. Additionally, the debtors turnover ratio reached a high of 2.23 times, indicating effective management of receivables.
However, MTNL continues to face challenges, particularly with net sales, which have declined by 22.54% over the last six months, totaling Rs 348.96 crore. The company's debt-equity ratio stands at -1.18 times, highlighting financial leverage concerns. Furthermore, the latest quarterly results show a significant loss, with a profit after tax of Rs -960.20 crore, reflecting a 9.8% decline compared to the previous four-quarter average. The earnings per share also remain low at Rs -15.24, and the dividend per share is currently at Rs 0.00.

In terms of market performance, MTNL's stock has shown varied returns compared to the Sensex. Over the past year, the stock has declined by 7.92%, while the Sensex has gained 9.50%. However, over a three-year period, MTNL has outperformed the Sensex with a return of 89.37% compared to 37.57%. This juxtaposition highlights the volatility and challenges faced by MTNL in the current market landscape.