iWorld
MTNL stays EBITDA positive as government pumps Rs 28,398 crore into revival
Centre says no fresh turnaround plan announced as debt support and VRS drive stabilise operations
NEW DELHI: MTNL may still be in the red, but its operating performance is finally finding a dial tone. The government told Parliament that the state-run telecom company has remained EBITDA positive since FY21, backed by a revival package that includes Rs 24,071 crore in sovereign-backed debt restructuring and Rs 4,327 crore for employee voluntary retirement.
Replying to a starred question in the Lok Sabha, Union minister for communications Jyotiraditya M. Scindia outlined the financial and administrative measures taken to stabilise Mahanagar Telephone Nigam Limited, which has been under financial stress amid mounting competition and debt.
The revival package includes the issuance of Sovereign Guarantee Bonds (SGBs) worth Rs 24,071 crore to restructure MTNL’s high-cost debt. The government has also sanctioned and released Rs 4,327 crore to fund the company’s Voluntary Retirement Scheme (VRS), while extending Rs 3,657.05 crore to service interest payments on the bonds.
As part of the restructuring, MTNL’s operational activities have been transferred to Bharat Sanchar Nigam Limited under a service agreement. The company is also monetising non-core assets to meet its liabilities.
The government’s intervention has helped improve MTNL’s operating earnings. EBITDA rose from Rs 43 crore in FY24 to Rs 195 crore in FY25, before more than doubling to Rs 437 crore in FY26.
Despite the operational improvement, MTNL continues to report net losses. The company posted a net loss of Rs 3,101.5 crore in FY26, an improvement from Rs 3,341.36 crore in FY25, but still substantially higher than earlier years.
MTNL’s total income increased to Rs 1,468.81 crore in FY26 from Rs 1,307.02 crore in FY25. However, its liabilities continued to rise, touching Rs 40,008.52 crore at the end of FY26, compared with Rs 37,119.94 crore a year earlier.
The company reported total assets of Rs 10,033.68 crore in FY26, down from Rs 12,303.64 crore in FY22. However, the government noted that MTNL holds non-core assets with an estimated market value of around Rs 50,000 crore, significantly exceeding its outstanding liabilities.
The government did not announce any fresh restructuring plan for MTNL, indicating that the current strategy of debt restructuring, operational transfer to BSNL and asset monetisation will continue to underpin the company’s revival efforts.
