GTL - GTL

📊 NSE: GTL 🏢 Telecommunications - Service Provider 📅 Last Updated: 12/13/2025 22:39

💰 Financial Performance

Revenue Growth by Segment

Total income from operations for Q2 FY26 was INR 56.05 Cr, representing a significant decline of 24.8% compared to INR 74.54 Cr in Q2 FY25. For the half-year ended September 30, 2025, revenue was INR 112.31 Cr, down 18.8% from INR 138.37 Cr in the previous year's corresponding period.

Geographic Revenue Split

Not specifically disclosed in the provided documents; however, the company is headquartered in Navi Mumbai, Maharashtra, and operates as a Network Services Company focused on the Indian Telecom sector.

Profitability Margins

The company reported a Net Loss of INR 39.47 Cr for Q2 FY26, a sharp reversal from a Net Profit of INR 9.34 Cr in Q2 FY25. Net Profit Margin is deeply negative. If the unprovided interest of INR 93.41 Cr were included, the loss would have escalated to INR 132.44 Cr.

EBITDA Margin

Operating profitability is severely impacted by high fixed costs and exchange losses. Profit before exceptional items and tax for Q2 FY26 was a loss of INR 32.44 Cr, compared to a profit of INR 19.12 Cr in Q2 FY25, representing a margin swing of over 80% of revenue.

Capital Expenditure

Depreciation and amortization expense for Q2 FY26 was INR 1.77 Cr, down 39% from INR 2.91 Cr in Q2 FY25, suggesting limited new capital investment and aging infrastructure.

Credit Rating & Borrowing

The company faces severe credit stress with current borrowings of INR 5,141.94 Cr. It has ceased providing for interest on these borrowings; had it done so, finance costs for Q2 FY26 would have increased by INR 93.41 Cr.

⚙️ Operational Drivers

Raw Materials

Cost of Material Consumed and Services rendered accounted for INR 5.99 Cr in Q2 FY26, representing 10.7% of total revenue.

Capacity Expansion

No expansion plans disclosed; the company is currently focused on managing a massive liquidity crisis with current liabilities of INR 5,848.67 Cr against current assets of only INR 133.39 Cr.

Raw Material Costs

Raw material and service costs were INR 5.99 Cr in Q2 FY26, down 20.4% from INR 7.53 Cr in Q2 FY25, tracking the overall decline in revenue.

Manufacturing Efficiency

Not applicable as a service provider; however, employee benefit expenses of INR 20.18 Cr represent 36% of revenue, indicating high overhead relative to current scale.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

The company currently lacks a growth strategy as it is under 'Material Uncertainty relating to Going Concern.' The focus is on debt restructuring and maintaining existing telecom network service operations while operating with a negative net worth of INR 6,052.56 Cr.

Products & Services

Telecom Network Services, including operations and maintenance for telecom towers and infrastructure.

Brand Portfolio

GTL Limited.

New Products/Services

None disclosed; focus is on survival and existing service contracts.

Market Expansion

No expansion plans; the company is currently in a defensive posture due to its financial position.

Strategic Alliances

Not disclosed; currently operating under the supervision of lenders.

🌍 External Factors

Industry Trends

The telecom network services industry is evolving toward 5G infrastructure, but GTL's ability to participate is severely limited by its financial distress and negative net worth.

Competitive Landscape

Competes with other telecom infrastructure and managed service providers in a highly consolidated Indian market.

Competitive Moat

The company's moat has been effectively destroyed by its debt burden; current liabilities exceed current assets by INR 5,715.28 Cr, casting significant doubt on its competitive sustainability.

Macro Economic Sensitivity

Highly sensitive to the financial health of the Indian telecom sector and interest rate environments, although it has stopped accruing interest on its INR 5,141.94 Cr debt.

Consumer Behavior

Not directly applicable as a B2B service provider.

Geopolitical Risks

Not specifically mentioned, but forex volatility indicates exposure to global macroeconomic shifts.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to Department of Telecommunications (DoT) norms and telecom infrastructure regulations in India.

Taxation Policy Impact

The company recognized a deferred tax credit of INR 3.30 Cr in Q2 FY26.

Legal Contingencies

The company faces significant legal and financial risk from lenders. A charge on shares held by the promoter company, previously considered a contingent liability, has now crystallized. The company is also operating under a modified auditor's opinion due to non-provision of interest.

⚠️ Risk Analysis

Key Uncertainties

The primary risk is the 'Going Concern' status. With a negative net worth of INR 6,052.56 Cr and current liabilities of INR 5,848.67 Cr, the company faces an existential threat if lenders initiate insolvency proceedings.