MTNL Share Price Sykrockets 18% In A Single Session; What’s Fueling the Surge In This Debt-Ridden PSU Stock?

Shares of MTNL surged 18.3% in the early morning trade on Thursday, March 13, hitting an intraday high of Rs. 51.18. This sharp rally in MTNL share price today comes amid renewed investor interest in PSU stocks due to the recent asset monetization update. Is this signal for a remarkable recovery despite its financial struggles? But what's fueling this surge in MTNL stock? Let's take a closer look.

Why Are MTNL Shares Rising Today?

Shares of Mahanagar Telephone Nigam Ltd. (MTNL) witnessed a strong rally following fresh updates on the company's asset monetization efforts. In a written response to the Lok Sabha on March 12, 2025, Minister of State for Communications Pemmasani Chandra Sekhar provided a detailed breakdown of revenue earned through asset sales.

As per the CNBC report, BSNL has generated Rs. 2,387.82 crore from land and buildings and Rs. 8,204.18 crore from telecom infrastructure, including towers and fiber. Meanwhile, MTNL has raised Rs. 2,134.61 crore from land and buildings and an additional Rs. 258.25 crore from telecom assets.This confirmation of MTNL's ongoing monetization efforts has sparked renewed investor confidence, fueling the stock's sharp rally.

MTNL Share Price Today

Following the latest update, MTNL shares today witnessed a sharp rally, surging 18.3% to reach ₹51.18. The stock opened at Rs.46.30, touched a high of Rs.51.18, and recorded a low of ₹46.30 during the session. Despite today's gains, MTNL share price have declined 5.77% year-to-date, reflecting volatility in the stock. Over the past year, the stock hit a 52-week high of ₹101.93 in July and a 52-week low of ₹31.20. As of March 13, MTNL's market capitalization stands at Rs. 3,090 crore.

MTNL Struggles with Declining Revenue

MTNL's financial troubles continue to escalate as the state-owned telecom firm grapples with heavy debt, shrinking revenue, and widening losses. Last year in October, MTNL was classified as MTNL as a Non-Performing Asset (NPA) by major banks in India, which intensified concerns over its financial health.

In the quarter that ended December in FY25, MTNL reported a net loss of Rs.836 crore, with slight improvement from Rs.839 crore loss in the same period last year. However, revenue took a significant hit, declining 11.6% year-on-year to Rs.170 crore, down from Rs.192.2 crore in Q3 FY24.

Adding to the financial strain, EBITDA losses deepened to Rs. 128.1 crore from Rs. 125.7 crore, reflecting rising operational inefficiencies and cost pressures.

About Mahanagar Telephone Nigam Limited (MTNL)

Mahanagar Telephone Nigam Limited (MTNL) is a state-owned telecommunications service provider in India, operating primarily in Delhi and Mumbai. Established in 1986, MTNL was once a leading telecom player but has struggled in recent years due to mounting debt, declining revenues, and stiff competition from private players like Reliance Jio, Bharti Airtel, and Vodafone Idea.