MTNL narrows operating loss, but Rs 756.33 cr interest keeps net loss high
Revenue grew 11.74% QoQ while expenses rose 3.72%, lifting operating margin 8.27 percentage points; the filing came after market close.
Filed 13 Nov 2026, 19:12 IST · after market close · Mahanagar Telephone Nigam Ltd (MTNL)
Key takeaways
- MTNL's consolidated operating margin improved 8.27 percentage points QoQ to -6.94% as revenue grew 11.74% while expenses rose 3.72%.
- Interest expense rose 1.18% QoQ to Rs 756.33 cr and kept the company in a Rs 835.45 cr pre-tax loss.
- MTNL's -6.94% operating margin was 29.97 percentage points below the telecom-sector median across 14 reporters, ranking second from bottom.
Price around the results
Revenue growth narrowed the operating loss
In consolidated results, revenue rose 11.74% QoQ to Rs 242.36 cr, outpacing the 3.72% increase in expenses. That reduced the operating loss to Rs 16.81 cr from Rs 32.99 cr in Q1FY27 and lifted operating margin by 8.27 percentage points to -6.94%. Net loss nevertheless remained Rs 835.45 cr.
Interest remains the central drag
Interest expense increased 1.18% QoQ to Rs 756.33 cr, more than offsetting the improvement in operating performance. Depreciation declined 0.79% to Rs 136.20 cr, while other income fell 2.08% to Rs 73.89 cr and represented -8.84% of pre-tax profit because the company remained loss-making. With the tax rate unchanged at 0%, the net loss was the same as the pre-tax loss.
Margin improved, but MTNL stayed near the bottom of telecom
The operating margin improved from -15.21% in Q1FY27, but the available quarter trend does not establish a longer multi-quarter direction. MTNL's -6.94% margin was 29.97 percentage points below the 23.03% median for the 14 telecom peers that had reported. The company ranked second from bottom on this measure.
Results came after market close
MTNL filed its consolidated Q2FY27 results after market close. The stock's response is therefore not part of this result-day read.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹242 cr | ₹217 cr | +11.74% |
| Other income | ₹74 cr | ₹75 cr | -2.08% |
| Expenses | ₹259 cr | ₹250 cr | +3.72% |
| Operating profit | ₹-17 cr | ₹-33 cr | +49.05% |
| Operating margin (%) | -6.94% | -15.21% | — |
| Interest | ₹756 cr | ₹748 cr | +1.18% |
| Depreciation | ₹136 cr | ₹137 cr | -0.79% |
| Profit before tax | ₹-835 cr | ₹-842 cr | +0.82% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹-835 cr | ₹-842 cr | +0.82% |
| EPS (₹) | ₹-13.26 | ₹-13.37 | +0.82% |
Operating margin of -6.94% compares with a Telecommunication sector median of 23.03% across 14 peers that have reported Q2FY27.
What to watch
- Whether operating margin improves from -6.94% in the next quarter.
- Whether interest expense moves below Rs 756.33 cr.
- Whether revenue growth remains ahead of the 3.72% QoQ expense growth recorded this quarter.