MMTC Limited first-half profit falls 39% as gains fade

MMTC Limited reported standalone profit after tax of Rs 103.20 crore for the half year ended 30 September 2026, down 39% from Rs 170.26 crore a year earlier, as Rs 378.01 crore of exceptional income in the prior-year period did not recur and the latest half year included Rs 5.29 crore of exceptional expense.

Why did MMTC’s first-half profit decline?

MMTC’s reported first-half profit declined because the shift in exceptional items outweighed a substantial rise in profit before exceptional items. Profit before tax and exceptional items rose to Rs 140.79 crore in the half year ended 30 September 2026 from Rs 60.20 crore in the corresponding half year of 2025, an increase of Rs 80.59 crore. However, exceptional items moved from income of Rs 378.01 crore in the earlier period to an expense of Rs 5.29 crore in the latest period.

That movement lowered profit before tax to Rs 135.50 crore from Rs 438.21 crore. Total tax expense was Rs 32.30 crore in the latest half year, compared with Rs 267.95 crore a year earlier, producing profit after tax of Rs 103.20 crore versus Rs 170.26 crore. Basic and diluted earnings per share, which are not annualised, consequently fell to Rs 0.69 from Rs 1.14.

The reported profit reduction therefore did not reflect a lower pre-exceptional result. Rather, the comparison was shaped primarily by the absence of the Rs 378.01 crore exceptional income booked in the six months ended 30 September 2025. In the latest period, MMTC disclosed an exceptional charge of Rs 5.43 crore paid to Chennai Port Authority on 17 July 2026 following the 12 May 2026 decision of the Administrative Mechanism for Resolution of CPSEs Disputes.

What changed in MMTC’s income and expenses?

MMTC’s total income increased to Rs 184.04 crore in the half year ended 30 September 2026 from Rs 110.03 crore a year earlier, led by other income of Rs 182.09 crore against Rs 107.57 crore. Revenue from operations was Rs 1.95 crore, lower than Rs 2.46 crore in the corresponding period. Most reported income in both half years came from other income rather than operating revenue.

Total expenses decreased to Rs 43.25 crore from Rs 49.83 crore. Employee benefit expense fell to Rs 29.50 crore from Rs 34.43 crore, while depreciation and amortisation declined to Rs 1.38 crore from Rs 1.96 crore. Operating expenses were Rs 11.50 crore compared with Rs 12.16 crore, and finance costs were Rs 0.16 crore against Rs 0.24 crore.

The June 2026 quarter accounted for most of the first-half other income. Total income was Rs 146.12 crore in the quarter ended 30 June 2026, compared with Rs 37.92 crore in the September quarter. Profit before exceptional items and tax was Rs 124.50 crore in the June quarter, versus Rs 16.29 crore in the September quarter, while quarterly profit after tax was Rs 93.73 crore against Rs 9.47 crore.

Cash-flow disclosures identify interest income of Rs 67.26 crore and dividend income of Rs 111.48 crore for the half year ended 30 September 2026, compared with Rs 68.49 crore and Rs 33.07 crore respectively a year earlier. Net cash used in operating activities was Rs 179.12 crore, compared with an outflow of Rs 145.01 crore in the prior-year half, while investing activities generated Rs 178.68 crore, mainly through interest and dividend receipts.

What does MMTC’s balance sheet show at September 2026?

MMTC’s total standalone assets stood at Rs 2,512.00 crore on 30 September 2026, up from Rs 2,374.28 crore on 31 March 2026. Bank balances other than cash and cash equivalents increased to Rs 1,919.17 crore from Rs 1,785.97 crore, while current tax assets rose to Rs 102.86 crore from Rs 39.82 crore. Cash and cash equivalents were Rs 2.10 crore, compared with Rs 2.70 crore at the March year-end.

Total equity comprised paid-up share capital of Rs 150.00 crore and other equity of Rs 1,666.72 crore at 30 September 2026. Other equity was Rs 1,549.13 crore at 31 March 2026. Current trade payables due to creditors other than micro and small enterprises were Rs 238.32 crore, broadly unchanged from Rs 237.99 crore six months earlier.

MMTC reported no current borrowings at either 30 September 2026 or 31 March 2026. Current provisions were Rs 131.25 crore, compared with Rs 130.67 crore at the preceding year-end, and non-current provisions were Rs 21.65 crore versus Rs 21.64 crore. These standalone figures should be read with the auditor’s qualified conclusion on the Anglo Coal accounting matter.

What is the Anglo Coal accounting issue for MMTC?

MMTC’s auditor issued a qualified conclusion because Rs 82.82 crore of the estimated Anglo Coal liability had not been recognised in the books as at 30 September 2026. Management estimated its remaining obligation at Rs 170.58 crore, including interest calculated to 17 November 2025, while a provision of Rs 87.76 crore was available. The unrecognised balance was shown as a contingent liability.

According to the auditor, recognising the additional Rs 82.82 crore would have increased provisions and reduced other equity by the same amount at 30 September 2026. The auditor said the non-recognition was a departure from Indian Accounting Standard 37, which governs provisions, contingent liabilities and contingent assets, because the decree had established the liability and only its quantification remained pending.

MMTC said Rs 1,000 crore was released to Anglo Coal on 17 November 2025 under a Delhi High Court order, after the Supreme Court dismissed its special leave petition on 3 November 2025. The High Court’s 9 January 2026 order left two issues pending: withholding tax on the awarded amount and the relevant exchange-rate date for the award and interest. The company said the next hearing was scheduled for 3 December 2026.

Conclusion

MMTC’s first-half results show lower reported profit despite a Rs 80.59 crore increase in profit before exceptional items and tax. The principal change was that Rs 378.01 crore of exceptional income in the prior-year period was replaced by Rs 5.29 crore of exceptional expense, reducing profit after tax to Rs 103.20 crore.

The next disclosed items to watch are the 3 December 2026 Anglo Coal hearing and the accounting effect of MMTC’s voluntary retirement scheme. MMTC introduced the scheme on 9 September 2026, accepted applications from 38 employees and relieved 23 on 30 October 2026; management said an estimated Rs 20 crore expense will be accounted for in the subsequent quarter.