MTNL shares skyrocket 16% as asset monetization earns Rs 2,135 crore

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26 Aug, 2025 12:21

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Shares of Mahanagar Telephone Nigam (MTNL) rallied over 16 percent on March 13 after government said in the Parliament that the company has earned Rs 2,134.61 crore from monetization of land and building assets up to January 2025.

The Minister of State for Communications Pemmasani Chandra Sekhar informed Lok Sabha on March 12 that the state-owned telecom firms BSNL and MTNL have earned a total of Rs 12,984.86 crore from the monetization of assets since 2019.

BSNL meanwhile earned Rs 2,387.82 crore from the monetisation of lands and buildings.

"BSNL and MTNL are monetising only those land and building assets which are not required for their own use in the foreseeable future and for which it has the rights to transfer the ownership," Sekhar said in a written reply.

As per the written reply, BSNL and MTNL have earned Rs 8,204.18 crore and Rs 258.25 crore respectively from the monetisation of close assets comprising tower and fibre during the period.

"Monetisation of assets are being done as per approved policy of the Government and its impact on the PSUs are being monitored closely," Sekhar said.

Despite the strong gains recorded on March 13, MTNL shares are still significantly down from their 52-week high of Rs 101.93, which was recorded in July last year. The stock is still close to its 52-week low of Rs 31.20 per share. In the past six months, the shares of the state-owned telecom company have tumbled over 16 percent.

MTNL, burdened with heavy debt, has been classified as a Non-Performing Asset (NPA) by several state-owned lenders in 2024.

Finance Minister Nirmala Sitharaman, in her Budget 2025 speech, had announced a new scheme to provide broadband connectivity to select government schools and health centres. However, despite the continued focus, government’s telecom revenue is expected to decline by over 33 percent to Rs 82,442.84 crore in FY26 from Rs 1,23,357.20 crore in the current fiscal, according to budget documents. This sharp drop comes despite upcoming payments from telecom operators for deferred spectrum and adjusted gross revenue (AGR) dues after the moratorium ends in September 2025.