1. At a Glance
India’s most loyal loss-maker returns for another quarter of financial heartbreak. TTML’s Q1 FY26 net loss was ₹324.98 Cr, pushing accumulated losses above share capital (again). Still no positive EPS, no dividend, and no chill. ROCE is 50% though—until you remember it’s based on negative equity.
2. Introduction with Hook
Imagine running a marathon, barefoot, on a treadmill, that’s on fire—and you never stop. That’s TTML.
- Q1 FY26 Loss: ₹325 Cr
- Book Value: -₹100 per share. Yes, negative hundred. Not a typo.
Once a promising telecom player, now the poster child for “Don’t Try This at Home” finance.
3. Business Model (WTF Do They Even Do?)
TTML is like that one cousin who used to be in a rock band and now does wedding gigs. Once a full-stack pan-India mobile operator, it sold off the consumer mobility business to Bharti Airtel and now does enterprise telecom:
- Services: Internet, wireline voice, managed services
- Focus Areas: Maharashtra & Goa
- Basically, it’s telecom without the juicy mobile revenue. Or profit.
4. Financials Overview
Here’s how the Q1 FY26 numbers stack up—and then fall over:
| Metric | Q1 FY26 |
|---|---|
| Revenue | ₹284 Cr |
| EBITDA (approx) | ₹147 Cr (52% margin) |
| Interest Expense | ₹433 Cr (yikes) |
| Net Loss | ₹325 Cr |
| EPS | -₹1.66 |
Commentary:
Margins are decent, sure, but the interest burden eats the entire business alive. Operating cash flow’s breathing. Net profit’s in a coma.
5. Valuation
Fair Value? That assumes value exists. But for the brave:
Method 1: EV/EBITDA
Let’s be generous:
- EBITDA (TTM): ~₹588 Cr
- EV/EBITDA (5x – 7x): ₹2,940 Cr – ₹4,116 Cr
- Implied FV per share: ₹15 – ₹21
Method 2: Price/Sales
- Sales (TTM): ₹1,269 Cr
- P/S range (1x – 2x): ₹1,269 Cr – ₹2,538 Cr
- Implied FV per share: ₹6.5 – ₹13
FV Range: ₹6 – ₹21/share
At CMP of ₹63, you’re paying Taj Mahal price for a haunted bungalow.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Results: Continued losses, but still “going concern”
- Accumulated Losses > Equity: Again. As always.
- Credit Rating Update: CRISIL and CARE keep watching like suspicious landlords.
- Board Updates: Insider trading policy updated — maybe because the public isn’t doing enough trading.
There’s no growth catalyst unless “hope” counts as one.
7. Balance Sheet
| Metric | FY25 (Rs Cr) |
|---|---|
| Equity Capital | 1,955 |
| Reserves | -21,525 |
| Borrowings | 20,416 |
| Other Liabilities | 458 |
| Fixed Assets | 798 |
| Cash | 413 |
Highlights:
- Net worth: Deeply underwater
- Borrowings: Huge, with no EBITDA to support it
- Assets: Mostly telecom infra that’s aging like milk
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY25 | ₹505 Cr | ₹-109 Cr | ₹-386 Cr | ₹10 Cr |
| FY24 | ₹587 Cr | ₹-65 Cr | ₹-503 Cr | ₹18 Cr |
| FY23 | ₹558 Cr | ₹-66 Cr | ₹-494 Cr | ₹-2 Cr |
TTML generates cash. It just hands it over to lenders faster than it comes in.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 50% |
| ROE | NA (negative equity) |
| P/E | NA |
| PAT Margin | -98% |
| D/E | Undefined, but sky-high |
Verdict:
ROCE is technically positive because equity is negative. Financial alchemy at its finest.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹1,106 Cr | ₹492 Cr | ₹-1,145 Cr |
| FY24 | ₹1,192 Cr | ₹527 Cr | ₹-1,228 Cr |
| FY25 | ₹1,308 Cr | ₹571 Cr | ₹-1,275 Cr |
Analysis:
Revenues inch up. EBITDA improves. PAT remains consistently tragic. It’s like baking a perfect cake and then stomping on it.
11. Peer Comparison
| Company | Rev (TTM) | PAT (TTM) | P/E | ROCE |
|---|---|---|---|---|
| Bharti Airtel | ₹1.73 L Cr | ₹22,677 Cr | 51.2 | 13.5% |
| Tata Comm | ₹23,476 Cr | ₹1,041 Cr | 47.3 | 14.8% |
| Vodafone Idea | ₹43,571 Cr | ₹-27,383 Cr | NA | -1.9% |
| TTML | ₹1,269 Cr | ₹-1,277 Cr | NA | 50.3% (lol) |
Takeaway:
TTML is that one guy at a marathon who runs backwards, in crocs.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 74.36% |
| FIIs | 2.81% |
| DIIs | 0.12% |
| Public | 22.70% |
Promoter: Tata Sons. Still holding. Possibly out of emotional attachment or maybe they lost the password to the demat account.
Buzz: No signs of FPO, strategic sale, or IPO magic. This is the B-team of the Tata Group telecom saga.
13. EduInvesting Verdict™
Tata Teleservices Maharashtra is a strange cocktail: decent operational margins, horrific debt, and zero profits for over a decade. It’s telecom, but not the sexy kind with subscriber growth and 5G drama. It’s the type that shows up to earnings calls like: “Hi. We lost money again.”
Final Take:
An enterprise-grade telecom stuck in an existential crisis.
“A textbook case of how not to do capital allocation. Might survive. Might surprise. But don’t hold your breath.”
Metadata:
Written by EduInvesting Team | 23 July 2025
Tags: Tata Teleservices Maharashtra Ltd, TTML, Telecom, Analysis, EduInvesting Premium
