MTNL shares surged 20% to hit ₹57.21 in morning trade on February 5, driven by optimism over its asset monetization plans for FY26. This rally follows a 7% gain in the previous session, breaking a two-day slump.

 

The boost came after Arunish Chawla, Secretary of DIPAM, reaffirmed the government’s plan to help MTNL and BSNL sell assets to clear debt and revive operations. His remarks during CNBC-TV18’s Budget 2025 discussion fueled investor confidence.

 

MTNL has been struggling with heavy debt and was classified as an NPA by state-owned banks last year. Meanwhile, Finance Minister Nirmala Sitharaman’s Budget 2025 speech introduced a scheme to provide broadband to government schools and health centers, further lifting sentiment in the telecom sector.

 

The BSE Telecom index rose 1.4% to 2,806 as investors reacted positively. However, government telecom revenues are projected to drop over 33% in FY26 due to lower spectrum and license fee collections.