Sharp Government Mandate Ignites MTNL Ltd's (Rs.42.26) Aggressive Turnaround Plan.

~Sumon Mukhopadhyay.

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Mahanagar Telephone Nigam Limited (MTNL) is undergoing a dramatic revival, catalyzed by a decisive policy shift from the Department of Telecommunications (DoT). A new mandate now requires all central ministries, CPSEs, and autonomous bodies to prioritize MTNL and BSNL for internet, broadband, and leased line services—effectively securing a stable revenue stream and shielding MTNL from insolvency risks. Photo: Business Today.

Debt Reduction & Asset Monetization:

MTNL is aggressively deleveraging, with ₹2,134 crore banked from land and tower sales in early 2025. These funds are earmarked for debt repayment and infrastructure upgrades, including a robust 4G rollout.

Subscriber Surge & Network Expansion:

In August alone, MTNL added 1.39 million mobile subscribers—outpaced private competitors like Vodafone Idea. This surge reflects renewed consumer confidence and the operational synergy with BSNL.

Union Budget 2025: Digital Infrastructure Push:

The government’s 2025 budget prioritized broadband connectivity for schools and health centers, positioning MTNL as a key player in India’s digital transformation. This policy tailwind triggered a 20% rally in MTNL’s share price, reaching ₹43.52 in February.

Retail Buzz & Market Sentiment:

On Twitter (X), the buzz is electric: @Garg_Aditya calls MTNL a “proxy play" on India’s public sector telecom turnaround story, while @StockGuruIndia dubs it a “sleeper multibagger” tied to BSNL’s 5G synergy, with posts racking up 500+ likes in October, reflecting retail excitement over network rollouts and debt resolution. 

Valuation & Upcoming Catalysts:

With the 39th AGM approaching on October 31, 2025, MTNL’s shares, trading near a 52-week low of ₹37.50 with a ₹2,662 crore market cap, signal a compelling undervaluation for astute investors targeting PSU telecom opportunities—keep an eye on Q2 catalysts that could spark a re-rating of this turnaround gem.