MTNL Shares Surge 16% on Rs 2,135 Crore Asset Monetization

State-owned telecom companies BSNL and MTNL have monetized assets worth nearly Rs 13,000 crore since 2019, as per government data.

MTNL Stock Rallies After Government Update on Asset Monetization

Shares of Mahanagar Telephone Nigam Limited (MTNL) soared over 16% on March 13 after the government announced in Parliament that the telecom firm has earned Rs 2,134.61 crore from the monetization of land and building assets as of January 2025.

• Minister of State for Communications Pemmasani Chandra Sekhar revealed in the Lok Sabha on March 12 that BSNL and MTNL have collectively raised Rs 12,984.86 crore through asset monetization since 2019.
• BSNL alone has monetized assets worth Rs 2,387.82 crore from lands and buildings.
• Both companies have also earned Rs 8,204.18 crore (BSNL) and Rs 258.25 crore (MTNL) from the monetization of tower and fiber assets.

Asset Monetization to Improve Liquidity for Struggling MTNL

MTNL, which has been classified as a Non-Performing Asset (NPA) by multiple state-owned banks, has been struggling with high debt and operational challenges.

• “BSNL and MTNL are monetizing only those land and building assets which are not required for their own use in the foreseeable future and for which they have ownership transfer rights,” said Sekhar in a written reply.
• The government is closely monitoring the impact of asset monetization on the financial health of these public sector telecom firms.

Despite the March 13 rally, MTNL’s stock remains well below its 52-week high of Rs 101.93 (recorded in July 2024) and close to its 52-week low of Rs 31.20. Over the past six months, MTNL shares have declined more than 16%.

Government Telecom Revenue Expected to Decline by 33% in FY26

The government has been pushing for reforms in the telecom sector, including funding broadband connectivity for government schools and health centers, as announced by Finance Minister Nirmala Sitharaman in the Budget 2025.

However, despite these initiatives, government telecom revenue is projected to drop by over 33% in FY26, from Rs 1,23,357.20 crore in FY25 to Rs 82,442.84 crore, as per budget documents.

This decline comes despite upcoming payments from telecom operators for deferred spectrum fees and adjusted gross revenue (AGR) dues, which are set to resume after the moratorium ends in September 2025.

While MTNL’s asset monetization move has provided a temporary boost to its stock, the company’s long-term financial stability remains uncertain, given its high debt burden, declining revenue, and limited market presence compared to private telecom players.