Summary of quarterly results filing for Tata Teleservices (Maharashtra) Ltd published on 23 Oct, 2025

Quarterly Results (Beancounter)October 23, 2025

Below is a structured extraction and summary of the relevant and actionable financial information from the Tata Teleservices (Maharashtra) Limited audited results filing dated October 23, 2025.

1. Auditor’s Note

Opinion: Unqualified (clean) audit opinion.
No qualifications, concerns, or issues raised by the auditor.
Audit conducted as per Indian Standards on Auditing.
Auditor confirms financial results give a true and fair view and comply with applicable accounting standards and SEBI regulations.
Going concern basis used, supported by a letter of financial support from the ultimate holding company.

Conclusion: No auditor qualifications or reservations. Standard clean audit report.

2. Financial Performance

Periods Covered:

Latest quarter: Q2 FY26 (July 1, 2025 - September 30, 2025)
Immediately preceding quarter: Q1 FY26 (April 1, 2025 - June 30, 2025)
Same quarter previous year: Q2 FY25 (July 1, 2024 - September 30, 2024)
Half year ended September 30, 2025 (H1 FY26)
Half year ended September 30, 2024 (H1 FY25)
Full financial year ended March 31, 2025 (FY25)

Key Financials (Rs. in Crores)

Particulars	Q2 FY26 (Sep 30, 2025)	Q1 FY26 (Jun 30, 2025)	Q2 FY25 (Sep 30, 2024)	H1 FY26 (Apr-Sep 2025)	H1 FY25 (Apr-Sep 2024)	FY25 (Apr 2024-Mar 2025)
Revenue from operations	286.13	284.25	343.50	570.38	667.00	1,308.04
Other income	1.86	2.11	1.53	3.97	5.20	8.10
Total Income	287.99	286.36	345.03	574.35	672.20	1,316.14
Employee benefits expenses	21.95	21.41	21.86	43.36	40.89	83.09
Operating & other expenses	126.27	118.14	184.43	244.41	354.04	654.17
Total Expenses	148.22	139.55	206.29	287.77	394.93	737.26
EBITDA	139.77	146.81	138.74	286.58	277.27	578.88
Depreciation & amortisation	(37.49)	(36.95)	(41.81)	(74.44)	(82.69)	(167.93)
Finance costs	(424.99)	(432.89)	(428.57)	(857.88)	(851.47)	(1,694.04)
Finance income	0.06	0.05	0.10	0.11	0.42	2.50
Profit on sale of investments	1.83	1.80	1.15	3.63	2.68	5.27
Loss before exceptional items & tax	(320.82)	(321.18)	(330.39)	(642.00)	(653.79)	(1,275.32)
Exceptional items (Note 2)	-	(3.80)	-	(3.80)	-	-
Loss before tax	(320.82)	(324.98)	(330.39)	(645.80)	(653.79)	(1,275.32)
Tax expense	-	-	-	-	-	-
Loss after tax	(320.82)	(324.98)	(330.39)	(645.80)	(653.79)	(1,275.32)
Other comprehensive income	0.97	1.97	(0.71)	2.94	(0.68)	(1.46)
Total comprehensive loss	(319.85)	(323.01)	(331.10)	(642.86)	(654.47)	(1,276.78)
Paid-up equity share capital	1,954.93	1,954.93	1,954.93	1,954.93	1,954.93	1,954.93
Basic & Diluted EPS (Rs.)	(1.64)	(1.66)	(1.69)	(3.30)	(3.34)	(6.52)
Interest service coverage ratio (ISCR)	0.80	0.84	0.80	0.82	0.80	0.84
Operating profit margin (%)	35.10	37.91	27.77	36.50	28.39	30.80
Net loss margin (%)	(112.12)	(114.33)	(96.18)	(113.22)	(98.02)	(97.50)

3. Detailed Notes / Management Commentary

Going Concern:
- Accumulated losses exceed paid-up capital and reserves as of Sept 30, 2025.
- Net loss incurred for Q2 FY26 and H1 FY26.
- Current liabilities exceed current assets as at Sept 30, 2025.
- Company has received a support letter from its ultimate holding company guaranteeing financial support for liquidity for 12 months from balance sheet date.
- Based on this, financials prepared on going concern basis.
Exceptional Items:
- Rs. 3.80 Crores provision made in Q1 FY26 and H1 FY26 for a demand from Term Cell (DoT) related to legacy mobility subscriber connections for FY08-FY12.
Change in Accounting Estimates:
- Reassessment of useful life of certain network assets increased from 18 years to 25 years.
- Resulted in lower depreciation charge by Rs. 6.06 Crores (Q2 FY26) and Rs. 11.97 Crores (H1 FY26).
Debt Listing:
- Company listed Commercial Papers on NSE as per SEBI circular dated Oct 22, 2019.
Segment Reporting:
- Single reportable segment: Telecommunication services under Unified License.

4. Segment Information

No segmental breakdown provided; company operates in a single business segment (telecom services).

5. Capex, Projects, and Corporate Activity

Capital Expenditure:
- Payments for property, plant & equipment and capital work-in-progress: Rs. 74.34 Crores (H1 FY26) vs Rs. 74.01 Crores (H1 FY25).
- Acquisition of right-of-use assets: Rs. 10.05 Crores (H1 FY26) vs Rs. 22.07 Crores (H1 FY25).
Investments:
- Payments for purchase of investments: Rs. 580.24 Crores (H1 FY26) vs Rs. 576.76 Crores (H1 FY25).
- Proceeds from sale of investments: Rs. 573.63 Crores (H1 FY26) vs Rs. 590.83 Crores (H1 FY25).
Borrowings:
- Long term borrowings: Rs. 9,608.72 Crores (Sept 30, 2025) down from Rs. 10,865.08 Crores (Mar 31, 2025).
- Short term borrowings: Rs. 10,836.62 Crores (Sept 30, 2025) up from Rs. 9,477.08 Crores (Mar 31, 2025).
Commercial Papers:
- Outstanding CPs as on Sept 30, 2025: Rs. 990 Crores (maturity value).
- All CP repayments made on due dates.
No disclosures on acquisitions, disposals, restructuring, writedowns, or impairments except:
- Provision for DoT demand (exceptional item).
- Impairment loss on financial assets Rs. 11.31 Crores (H1 FY26).

6. Standalone vs Consolidated

Only Standalone financial results provided and audited.
No consolidated results included or referenced.

Additional Financial Position Highlights (As at Sept 30, 2025 vs Mar 31, 2025)

Particulars	Sept 30, 2025 (Audited)	Mar 31, 2025 (Audited)
Total Assets	Rs. 1,234.71 Crores	Rs. 1,303.79 Crores
Equity Share Capital	Rs. 1,954.93 Crores	Rs. 1,954.93 Crores
Other Equity (including reserves)	(Rs. 21,699.40 Crores)	(Rs. 21,525.22 Crores)
Total Equity	(Rs. 19,744.47 Crores)	(Rs. 19,570.29 Crores)
Non-current borrowings	Rs. 9,608.72 Crores	Rs. 10,865.08 Crores
Current borrowings	Rs. 10,836.62 Crores	Rs. 9,477.08 Crores
Current ratio	0.55	0.61
Net worth	(Rs. 19,744.47 Crores)	(Rs. 19,567.47 Crores)

Summary of Key Financial Ratios (Q2 FY26)

Ratio/Metric	Q2 FY26 (Sep 30, 2025)
Interest Service Coverage Ratio (ISCR)	0.80
Debt Service Coverage Ratio (DSCR)	0.01
Debt to Equity Ratio	(1.04) (negative net worth)
Current Ratio	0.55
Bad debts to Account Receivable Ratio	8.20%
Total Debt to Total Assets	16.56 times
Debtors Turnover (days)	26 days
Operating Profit Margin	35.10%
Net Loss Margin	(112.12)%

Overall Observations for Investment Analysis Team

The company continues to report significant net losses and negative net worth, with losses exceeding Rs. 320 Crores in the latest quarter and Rs. 645 Crores in H1 FY26.
Revenue has declined compared to the same quarter last year (Q2 FY25: Rs. 343.50 Cr vs Q2 FY26: Rs. 286.13 Cr).
EBITDA remains positive and stable (~Rs. 140 Crores per quarter), indicating operational cash generation before finance costs.
Finance costs are extremely high (~Rs. 425 Crores per quarter), driving large net losses.
The company’s debt levels remain very high, with total borrowings exceeding Rs. 20,000 Crores.
Liquidity is tight: current ratio below 1 (0.55), current liabilities exceed current assets.
The company has received a financial support letter from the ultimate holding company to continue as a going concern.
Change in depreciation policy has reduced depreciation expense, slightly improving profitability.
Exceptional item of Rs. 3.80 Crores relates to a regulatory demand provision.
No segmental diversification; single telecom services segment.
Capital expenditure remains steady (~Rs. 74 Crores in H1 FY26).
No major restructuring or disposals reported.
Commercial papers are actively managed and repaid on time.
Auditor’s report is clean with no qualifications.

Actionable points:

Monitor the company’s ability to manage and reduce its high finance costs and debt burden.
Watch for any updates on regulatory demands or further exceptional items.
Assess the impact of the ultimate holding company’s support on liquidity and going concern status.
Evaluate operational cash flow generation given positive EBITDA but large net losses.
Consider the risks related to negative net worth and liquidity constraints.
No immediate concerns from audit perspective.

End of Analysis