Regulatory Filing
MTNL Reports Continued Default on Bank Loan and Interest Payments; Total Financial Indebtedness Stands at ₹36,966 Crore
NSE
mtnl
BSE
500108
Mahanagar Telephone Nigam Limited (MTNL) has disclosed a continued default in repayment of principal and interest obligations to seven public sector banks as of May 31, 2026. The total default amount stands at ₹9,418.92 crore, while overall financial indebtedness has reached ₹36,966 crore, comprising bank loans, sovereign-guaranteed bonds, and Department of Telecommunications (DoT) borrowings.
PRICE-SENSITIVE TRIGGER
Event: Disclosure of default in payment of principal installments and interest on bank borrowings.
Type: Regulatory Filing
Impact: Negative
Immediate Effect: MTNL remains in default across multiple lending institutions, with aggregate outstanding bank borrowings of approximately ₹9,419 crore and total indebtedness of ₹36,966 crore.
Key Metrics:
- Total Outstanding Borrowings from Banks/Financial Institutions: ₹9,419 crore
- Total Financial Indebtedness: ₹36,966 crore
- SG Bonds Outstanding: ₹24,071 crore
- DoT Loan for SG Bond Interest Servicing: ₹3,476 crore
- Total Default Amount: ₹9,418.92 crore
- Principal Outstanding in Default: ₹7,794.34 crore
- Overdue Interest: ₹1,624.58 crore
- Overdue Principal: ₹2,145.72 crore
- Revenue: Not disclosed in filing
- EBITDA: Not disclosed in filing
- PAT: Not disclosed in filing
- Margins: Not disclosed in filing
- QoQ Movement: Not disclosed in filing
- YoY Movement: Not disclosed in filing
- Segment Performance: Not disclosed in filing
Highlight:
- Total Financial Indebtedness: ₹36,966 crore
What Happened ?
MTNL informed stock exchanges that it continues to be in default on repayment of principal installments and interest obligations to a consortium of public sector banks. The disclosure, made under Regulation 30 of SEBI (LODR) Regulations, reflects the company’s financial position as of May 31, 2026. The reported default amount aggregates to ₹9,418.92 crore across seven lenders, while total indebtedness remains significantly elevated at ₹36,966 crore.
Key Details
Default Position and Debt Profile:
- Defaults have been reported to Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab & Sind Bank, and Indian Overseas Bank.
- The earliest NPA classification among the lenders dates back to August 12, 2024.
- Indian Overseas Bank accounts for the largest individual default exposure at ₹2,669.22 crore.
- Union Bank of India remains the largest lender exposure among the older default accounts with dues of ₹4,111.25 crore.
- Aggregate principal outstanding under default stands at ₹7,794.34 crore.
- Aggregate overdue interest amounts to ₹1,624.58 crore.
- Total bank borrowing exposure remains at approximately ₹9,419 crore.
- Overall financial indebtedness includes ₹24,071 crore of sovereign-guaranteed bonds and ₹3,476 crore borrowed from the Department of Telecommunications for servicing SG bond interest obligations.
Note:
- The filing represents a continuation of previously reported defaults and forms part of MTNL’s recurring regulatory disclosures regarding debt servicing obligations.
Risk Analysis
Summary:
- The disclosure highlights MTNL’s persistent debt-servicing challenges and elevated leverage position. Continued defaults increase refinancing risks and underscore dependence on government support mechanisms.
Key Risks:
- Ongoing NPA classification across multiple lenders.
- High financial indebtedness of ₹36,966 crore.
- Significant overdue principal and interest obligations.
- Dependence on sovereign-guaranteed debt structures and DoT support.
- Potential constraints on future borrowing flexibility and financial restructuring efforts.
Worst Case Scenario:
- Failure to resolve outstanding debt obligations could lead to prolonged financial stress, higher servicing costs, increased dependence on government support, and further deterioration in lender recoveries.
Risk Level: High
Company Commentary
- MTNL reported default in payment of principal installments and interest obligations to seven lending banks as of May 31, 2026.
- Total default amount stands at ₹9,418.92 crore.
- Outstanding borrowings from banks and financial institutions aggregate to approximately ₹9,419 crore.
- Total financial indebtedness stands at ₹36,966 crore, including sovereign-guaranteed bonds and DoT borrowings.
- The disclosure was made in compliance with Regulation 30 of SEBI (LODR) Regulations and applicable SEBI circular requirements.
Official Exchange Filing: MTNL
