Debt Default / Financial Stress Disclosure

MTNL Reports Continued Default on Bank Loan Principal and Interest Payments

NSE

MTNL

BSE

500108

Mahanagar Telephone Nigam Limited (MTNL) informed stock exchanges regarding continued default in payment of principal instalments and interest obligations to multiple public sector banks as of April 30, 2026. The company disclosed total bank default outstanding of Rs. 9,339.68 crore and total financial indebtedness of Rs. 36,545 crore.

PRICE-SENSITIVE TRIGGER

Event: Disclosure of default in repayment of bank loan principal and interest obligations.

Type: Debt Default / Financial Stress Disclosure

Impact: Negative

Immediate Effect: The disclosure reinforces concerns regarding MTNL’s financial health, debt servicing capability, and overall balance sheet stress, which may negatively affect investor confidence and creditor perception.

Key Metrics:

Total Current Default Amount: Rs. 9,339.68 Cr
Total Principal Outstanding in Default: Rs. 7,794.34 Cr
Total Overdue Interest: Rs. 1,545.34 Cr
Total Overdue Principal: Rs. 2,145.72 Cr
Total Outstanding Borrowings: Rs. 9,340 Cr
Total Financial Indebtedness: Rs. 36,545 Cr
SG Bond Outstanding: Rs. 24,071 Cr
Loan from DoT for SG Bond Interest: Rs. 3,134 Cr

Highlight Metric:

Total Financial Indebtedness:
Rs. 36,545 Cr

What Happened ?

Mahanagar Telephone Nigam Limited (MTNL) disclosed that it has continued to default on repayment of principal instalments and interest obligations to several public sector banks as of April 30, 2026.

The company submitted the disclosure under Regulation 30 of SEBI (LODR) Regulations and SEBI circular requirements related to default reporting.

According to the filing, lenders affected include:

Union Bank of India
Bank of India
Punjab National Bank
State Bank of India
UCO Bank
Punjab and Sind Bank
Indian Overseas Bank

MTNL disclosed that the cumulative current default amount stands at Rs. 9,339.68 crore, comprising principal and overdue interest obligations.

The filing further stated that the company’s total financial indebtedness, including bank loans, sovereign guaranteed bonds, and Department of Telecommunications support loans, stands at Rs. 36,545 crore.

Key Details

Disclosure pertains to default in principal and interest payment obligations.
Date of disclosure recorded as April 30, 2026.
Total current default amount stands at Rs. 9,339.68 crore.
Total outstanding borrowings from banks and financial institutions are Rs. 9,340 crore.
Total financial indebtedness reported at Rs. 36,545 crore.
Financial indebtedness includes SG Bonds worth Rs. 24,071 crore.
MTNL also disclosed Rs. 3,134 crore loan from Department of Telecommunications for SG bond interest servicing.
Multiple PSU banks have classified MTNL accounts as NPA between August 2024 and February 2025.
Largest exposure among disclosed banks relates to Union Bank of India.
Company continues to provide periodic default disclosures to exchanges.

Risk Analysis

Key Risks:

Ongoing default on principal and interest obligations.
Extremely high debt and financial indebtedness levels.
Dependence on government support and restructuring initiatives.
Weak operational profitability and declining telecom competitiveness.
Increased pressure from lenders and creditors.
Potential downgrade in credit profile and financing flexibility.
High interest burden affecting long-term sustainability.

Worst Case Scenario:

Failure to secure sustained financial support, restructuring, or operational turnaround could lead to worsening solvency concerns, increased liabilities, and further deterioration in business viability.

Risk Level: High

Company Commentary

MTNL disclosed the defaults under SEBI Regulation 30 compliance requirements.
The company provided detailed lender-wise default information.
Management disclosed updated outstanding borrowings and financial indebtedness figures.
MTNL continues periodic disclosures regarding debt servicing defaults and NPA classifications.

Official Exchange Filing: Mahanagar Telephone Nigam Ltd