Tata Teleservices (Maharashtra) Q2 FY26 Reports ₹320.8 Crore Net Loss; Revenue Stable at ₹286.1 Crore

Mumbai, 23 October 2025: Tata Teleservices (Maharashtra) Ltd (NSE: TTML, BSE: 532371) released its audited financial results for the quarter and half-year ending 30 September 2025, recording a net loss of ₹320.82 crore in Q2 FY26. Revenue remained largely steady at ₹286.13 crore, reflecting a marginal increase from ₹284.25 crore in Q1 FY26. The company’s operational performance showed efficiency gains despite persistent accumulated losses.

Headquartered in Maharashtra, Tata Teleservices (Maharashtra) Ltd provides business connectivity and ICT solutions across Maharashtra and Goa under the Tata Tele Business Services brand. Listed on the NSE and BSE under the ticker TTML, the company caters to enterprise clients with telecom and IT solutions, focusing on network reliability and business communications.

Revenue Holds Steady at ₹286.13 Crore as Operational Efficiency Improves EBITDA Margin to 35.1%

Tata Teleservices’ revenue from operations for Q2 FY26 was ₹286.13 crore, nearly unchanged from Q1 FY26’s ₹284.25 crore, while year-on-year revenue declined from ₹343.50 crore in Q2 FY25. The company’s EBITDA stood at ₹139.77 crore, slightly below Q1’s ₹146.81 crore, yet up from ₹138.74 crore in the same quarter last year. EBITDA margin improved significantly to 35.1% from 27.8% YoY, signalling better cost control and operational efficiency despite lower absolute revenue.

Operating and other expenses rose sequentially to ₹126.27 crore from ₹118.14 crore, offset by reduced depreciation following a revision in network asset useful life from 18 to 25 years, lowering depreciation by ₹6.06 crore for the quarter. Finance costs remained elevated at ₹424.99 crore, slightly lower than Q1 FY26’s ₹432.89 crore, reflecting ongoing debt servicing obligations.

Balance Sheet Shows Net Worth at Negative ₹19,744 Crore; Borrowings Total ₹20,445 Crore

As of 30 September 2025, TTML reported total assets of ₹1,234.71 crore and borrowings of ₹20,445 crore, up slightly from ₹20,342 crore at 31 March 2025. The company’s net worth remained in the negative at ₹(19,744.47) crore, reflecting accumulated losses over the past years. Despite this, the parent Tata Group has reaffirmed its support to ensure liquidity adequacy for the next 12 months.

Other equity remained negative at ₹(21,699.40) crore, and total share capital was ₹1,954.93 crore, underscoring a continued reliance on financial backing to maintain ongoing operations.

Cash Flow from Operations Strengthens to ₹347 Crore in H1 FY26 Amid Declining Cash Reserves

Tata Teleservices generated ₹347.02 crore in net cash from operating activities during H1 FY26, up from ₹241.31 crore in H1 FY25, driven by improved working capital management. Investing activities used ₹79.96 crore, while financing activities accounted for a cash outflow of ₹304.62 crore, leading to cash and cash equivalents of ₹4.81 crore, down from ₹21.33 crore a year earlier.

Outstanding commercial papers as of 30 September 2025 totalled ₹990 crore, with instruments due in June and September ₹235 crore fully repaid, while remaining instruments maturing in November and December are yet to be due.

Key Developments and Regulatory Updates Influence Depreciation and Provisioning

TTML revised the useful life of select network assets from 18 years to 25 years, reducing depreciation by ₹6.06 crore for Q2 FY26 and ₹11.97 crore for H1 FY26. A demand of ₹3.8 crore from the Department of Telecommunications related to legacy subscribers was fully provided for in Q1 FY26. These adjustments, combined with ongoing parent group support, stabilise the company’s liquidity and reinforce its operational continuity.

TTML Shares Drift to ₹55.10 as Market Reacts to Q2 Results

Following the announcement, TTML’s share price on the NSE was trading at ₹55.10, down ₹0.91 (1.62%) as of 1:42 PM IST. The stock opened at ₹56.01, hitting an intraday high of ₹56.25 and a low of ₹54.60. With a market capitalisation of ₹10,770 crore, the stock continues to reflect investor caution amid the company’s ongoing losses and high leverage, with a 52-week high of ₹88.90 and a low of ₹50.10.

Tata Teleservices (Maharashtra) maintained revenue stability while improving operational efficiency, reflected in a higher EBITDA margin of 35.1%. The company continues to manage debt obligations and operational costs prudently, supported by parent group backing and ongoing cash flow from operations, ensuring business continuity despite accumulated losses and negative net worth.

REF: https://nsearchives.nseindia.com/corporate/TTML_23102025115029_TTML_532371_Results_September_2025.pdf

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