Mahanagar Telephone Nigam Ltd (MTNL) shares surged over 17% following the board's approval to sell its Powai property to the Income Tax Department. The sale is valued at ₹891.53 crore and will be conducted through a Government-to-Government (G2G) transfer or direct sale. This decision marks a significant development for the company, which has been working to improve its financial position.
- MTNL will sell its Powai property covering 20,895.60 square meters.
- The sale value is ₹891.53 crore, subject to formal acceptance and approvals.
- MTNL's net loss narrowed to ₹842.36 crore in Q1 FY27 from ₹943.15 crore the previous year.
- Revenue from operations increased 25.9% year-on-year to ₹216.89 crore in Q1 FY27.
- The company experienced a subscriber decline of 5,879 in August 2026.
What property is MTNL selling to the Income Tax Department?
MTNL is selling its property located at Powai Plot-C, Technology Street, Powai, Mumbai. The land area measures 20,895.60 square meters. This property sale is part of a Government-to-Government transfer or direct sale arrangement with the Income Tax Department.
How much is the property sale valued at?
The sale value of the Powai property is ₹891.53 crore. The transaction will proceed once the Income Tax Department formally accepts the offer and after receiving Presidential and Alternative Mechanism approvals.
How is MTNL performing financially?
In the first quarter of the 2026-27 financial year, MTNL reported a consolidated net loss of ₹842.36 crore, an improvement from the ₹943.15 crore loss in the same quarter last year. Additionally, the company’s revenue from operations rose by 25.9% year-on-year, reaching ₹216.89 crore.
What changes have occurred in MTNL’s subscriber base?
According to the Telecom Regulatory Authority of India (TRAI), MTNL lost 5,879 subscribers in August 2026. This decline reflects ongoing challenges in maintaining its customer base amid a competitive telecom market.
How has MTNL’s stock price changed recently?
MTNL shares rose sharply by over 17% after the property sale announcement. As of early October 1, 2026, the shares were trading at ₹25.18 each, up 9.62% during the day. Over the past week, the stock gained more than 8%, though it has declined 3% over the past month and 29% year-to-date. The stock’s 52-week high was ₹44.67 on November 3, 2026, and its low was ₹21.26 on March 30, 2026.
What is MTNL’s current market capitalization?
As of October 1, 2026, MTNL’s total market capitalization stood at ₹1,590.75 crore, according to data from the National Stock Exchange (NSE).
Frequently Asked Questions
Q: What approvals are needed for the property sale?
A: The sale requires formal acceptance by the Income Tax Department, Presidential Approval, and Alternative Mechanism (AM) approval before it can be finalized.
Q: Why is MTNL selling the Powai property?
A: The sale is part of MTNL’s efforts to improve its financial health by monetizing assets amid ongoing operational challenges.
Q: Has MTNL’s financial performance improved recently?
A: Yes, MTNL’s net loss narrowed in Q1 FY27 compared to the previous year, and its revenue from operations increased by nearly 26% year-on-year.
