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Tata Teleservices (Maharashtra) Ltd

| Quarterly Financial Results Q3 FY 2025–26

BEARISH SENTIMENT

Report Source

⬤20th Jan 26

Summary : The company faces severe financial distress with accumulated losses and negative net worth, relying on ultimate holding company support to continue as a going concern, despite an unmodified auditor's review.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Employee benefits expenses: Rs. 22.35 Cr (Q3 FY26), Rs. 65.71 Cr (9M FY26).
  2. Operating and other expenses: Rs. 98.16 Cr (Q3 FY26), Rs. 342.57 Cr (9M FY26).
  3. Depreciation and amortisation expense: Rs. 35.67 Cr (Q3 FY26), Rs. 110.11 Cr (9M FY26).
  4. Finance costs: Rs. 287.82 Cr (Q3 FY26), Rs. 1,145.70 Cr (9M FY26).
  5. Exceptional items: Rs. 4.05 Cr (Q3 FY26), Rs. 7.85 Cr (9M FY26).
  6. Debtors turnover: 20 days (Q3 FY26), 23 days (9M FY26).
  7. Bad debts to Account receivable ratio: (8.95)% (Q3 FY26), 1.45% (9M FY26).
  8. Revenue from operations: Rs. 294.31 Cr (Q3 FY26), Rs. 864.69 Cr (9M FY26).
  9. Other income: Rs. 1.82 Cr (Q3 FY26), Rs. 5.79 Cr (9M FY26).
  10. Demand of Rs. 3.80 Crores from Term Cell (DOT).
  11. Accumulated losses exceed paid-up capital and reserves.
  12. Current liabilities exceed current assets.
  13. Negative Networth of Rs. (20,564.48) Crores as of Dec 31, 2025.
  14. Paid up equity share capital: Rs. 1,954.93 Crores.
  15. Outstanding Redeemable Preference Shares: Rs. 1,897.17 Crores.
  16. Commercial Papers outstanding: Rs. 1,465 Crores as of Dec 31, 2025.
  17. Support letter from ultimate holding company for liquidity.
  18. Standalone financial results.

Corporate Overview

  1. Primarily Maharashtra, India (based on company name and registered office).
  2. Accumulated losses exceed paid-up capital and reserves.
  3. Incurred net loss for the quarter and nine months ended December 31, 2025.
  4. Current liabilities exceeded current assets as of December 31, 2025.
  5. Dependency on ultimate holding company for liquidity support.
  6. Providing telecommunication services under Unified License.
  7. Factual and compliant, expressing confidence in continuing as a going concern due to holding company support.
  8. Single reportable segment for telecommunication services.

Risk Factors

  1. Accumulated losses exceed capital and reserves.
  2. Current liabilities surpass current assets.
  3. Persistent net losses impact profitability.
  4. Negative net worth indicates financial distress.

Key Drivers

  1. Ultimate holding company provides liquidity support.
  2. Asset useful life reassessment lowers depreciation.
  3. Unmodified auditor's review opinion received.
  4. Company confident in continuing as going concern.

Auditor’s Report

  1. Limited Review Report with an unmodified opinion.
  2. Disclosure regarding accumulated losses, current liabilities exceeding current assets, and reliance on ultimate holding company support for going concern.

Board Commentary

  1. Accumulated losses exceeding paid-up capital and reserves.
  2. Current liabilities exceeding current assets.
  3. Incurred net loss for the period.
  4. Demand of Rs. 3.80 Crores from Term Cell (DOT) for legacy mobility subscribers.
  5. Incremental impact of Rs. 4.05 Crores from New Labour Codes (gratuity and leave encashment).

Corporate Governance

  1. Financial results reviewed by Audit Committee and approved by Board of Directors.

Management Discussion & Analysis

Future Strategy

  1. Confident in ability to meet funds requirement and continue as a going concern.

Performance Drivers

  1. Revenue from operations for Q3 FY26 was Rs. 294.31 Crores, and Rs. 864.69 Crores for 9M FY26.
  2. Net loss for Q3 FY26 was Rs. 150.43 Crores, and Rs. 796.23 Crores for 9M FY26.
  3. EBITDA for Q3 FY26 was Rs. 175.62 Crores, and Rs. 462.20 Crores for 9M FY26.
  4. Depreciation charge was lower by Rs. 6.04 Crores (Q3) and Rs. 18.01 Crores (9M) due to reassessment of network asset useful life.

Risk Control Measures

  1. Obtained a support letter from the ultimate holding company for liquidity shortfalls.

Critical Risks

  1. Accumulated losses exceeding paid-up capital and reserves.
  2. Current liabilities exceeding current assets.
  3. Continuous net losses.
  4. Negative net worth.
  5. Low Debt Service Coverage Ratio (DSCR) and negative Debt Equity Ratio.
Tata Teleservices (Maharashtra) Ltd (TTML) Quarterly Report Analysis & Insights | Dhanarthi