MSTC FY2025-26: Profits rise, platforms take center stage

MSTC Limited closed FY2025-26 with its strongest revenue-from-operations performance in four years, while keeping profitability steady and sharpening its strategy around digital platforms. For the year ended 31 March 2026, revenue from operations stood at 369.66 crore, and total income (including other income) was 453.04 crore. EBITDA came in at 307.49 crore, up 18.25 percent year-on-year, reflecting a business model where fee-based e-auctions generate high operating leverage.

The headline profit after tax number needs context. FY2025-26 did not include any exceptional income, while FY2024-25 had a large exceptional item. As a result, reported PAT was 221.69 crore in FY2025-26 versus 402.98 crore in FY2024-25. Management repeatedly pointed investors to underlying performance, where profit before exceptional items rose to 295.69 crore from 240.71 crore, and PAT without exceptional items rose to 221.69 crore from 180.13 crore.

What drove performance: strong e-auction mix and higher contribution from scrap and minerals

Operationally, MSTC reported that the value of goods transacted through its ecosystem was 797.37 billion in FY2025-26. That metric fell year-on-year versus 898.24 billion in FY2024-25, but revenue moved in the opposite direction, rising 16.91 percent to 453.04 crore. The year’s business highlights in the investor presentation point to a richer mix and stronger auction-led activity in areas where the company earns fees.

The company highlighted completion of 10 coal mine auctions, auctioning of more than 200 major mineral blocks in FY2025-26, and strong activity in scrap sales, including end-of-life power plants. It also referenced coal linkage auctions, where Coal India Limited selected MSTC through competitive bidding, and mineral sales such as iron ore, pellets, slimes and chrome ore.

Segment reporting shows just how dominant the e-auction engine remains.

Within the revenue mix, e-commerce revenue was 329.72 crore in FY2025-26, and the bulk of that came from e-auction and e-sale revenue of 321.29 crore. E-procurement revenue was 8.43 crore, growing 55.25 percent year-on-year, but still small in absolute terms. Marketing revenue was 1.49 crore and is being phased out.

Strategic reset: exiting trading, doubling down on platforms

A key theme in the concall was the company’s ongoing consolidation. Management described a deliberate move away from marketing and trading activities, and towards being primarily an e-commerce company that builds and operates electronic platforms.

The investor presentation states that MSTC plans to completely exit the erstwhile trading vertical during FY2026-27. In the call, the Director (Finance) indicated that the revenue stream would be out of the business basket with Q1 of the current year. The logic is strategic clarity. Trading is working-capital and risk intensive, while MSTC’s strongest economics come from platform fees and service-led earnings.

This shift also sits alongside the earlier strategic disinvestment of FSNL, which management referenced as part of the broader transition.

The next growth levers: EPR trading and MSTC Smart Travel

Two future-facing initiatives dominated investor questions.

First is the Electronic Trading Platform for EPR certificates. Management stated that MSTC has developed, tested and integrated the platform, and that the portal is ready, but it is awaiting formal approval to launch. Importantly, management did not provide revenue projections. The CMD said the market is currently fragmented and not collated in a single place, which is one reason a transparent e-trading platform is being introduced. Management suggested that after six to eight months of operations, clearer market-wide data should emerge.

The revenue model was described as fee-based, similar to an exchange charging fees on transactions.

Second is a travel portal, branded as MSTC Smart Travel. The CMD described it as a B2B portal spanning travel, accommodation and associated services. The portal is in final stages of testing and is expected to be rolled out soon, starting with the B2B segment and potentially expanding as traction builds. Again, management avoided numerical revenue targets.

Beyond these, the company also mentioned development of new digital products including a portal for purchase or leasing of machinery, and a partnership with SBI CAPS to offer transaction advisory solutions including e-auction services. The stated intent is to move toward end-to-end mandates for asset value realisation for PSUs, government departments and private entities.

Points to track: JV performance, cost base, and coal ecosystem changes

The concall also provided updates on the 50-50 joint venture with Mahindra, Mahindra MSTC Recycling Private Limited. Management said operational changes have improved results and that the last three quarters have been consistent and encouraging, with net loss reducing sequentially. However, it remains a watch item until profitability is firmly established.

On costs, the finance director flagged higher overheads in FY2025-26 partly due to the opening of a corporate office in New Delhi. Management positioned this as an investment to improve business development and conversion.

A separate investor query focused on the possible emergence of a coal exchange. Management said the development is at a very early stage and its impact on MSTC’s coal auction revenues cannot yet be assessed. Given coal’s importance to MSTC’s auction activity, this is a structural industry change worth monitoring.

Takeaways

MSTC’s FY2025-26 performance shows a high-margin platform business still delivering steady profit growth on an underlying basis, even as transaction value moderated year-on-year. The bigger story is strategic. The company is exiting trading and marketing to concentrate on digital platforms, with the EPR trading portal and MSTC Smart Travel positioned as the next set of growth drivers.

For investors, the near-term milestones are clear and measurable even without guidance numbers: formal approval and go-live of the EPR platform, rollout of the travel portal after testing, and evidence that these new products can add meaningful fee income alongside the core e-auction engine.