Strong growth in other income drives profitability; auditors flag ₹82.82 crore provision gap in Anglo Coal matter
New Delhi : MMTC Limited, a Government of India enterprise under the Ministry of Commerce and Industry, has reported a sharp increase in profitability for the first quarter of FY2026-27, with standalone net profit rising 155.6% year-on-year to ₹93.73 crore.
The company’s Board of Directors approved the standalone and consolidated unaudited financial results for the quarter ended June 30, 2026, at its 491st meeting held on August 11. The meeting commenced at 3:30 PM and concluded at 6:30 PM.
Standalone Performance
MMTC’s standalone total income more than doubled during the quarter, rising to ₹146.12 crore from ₹71.56 crore in Q1 FY26, an increase of 104.2%.
The company’s profit before tax (PBT) increased 171.5% to ₹124.55 crore, compared with ₹45.88 crore in the corresponding quarter last year.
Standalone net profit climbed 155.6% to ₹93.73 crore, from ₹36.67 crore in Q1 FY26.
Basic earnings per share (EPS) increased to ₹0.62, compared with ₹0.24 a year earlier.
| Standalone Financials | Q1 FY27 | Q1 FY26 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹0.68 crore | ₹1.36 crore | -50.0% |
| Other Income | ₹145.44 crore | ₹70.20 crore | +107.2% |
| Total Income | ₹146.12 crore | ₹71.56 crore | +104.2% |
| Total Expenses | ₹21.62 crore | ₹25.69 crore | -15.8% |
| Profit Before Tax | ₹124.55 crore | ₹45.88 crore | +171.5% |
| Net Profit | ₹93.73 crore | ₹36.67 crore | +155.6% |
| Basic EPS | ₹0.62 | ₹0.24 | +158.3% |
Other Income Drives Profit Growth
A key factor behind MMTC’s strong quarterly performance was the sharp increase in other income, which rose to ₹145.44 crore from ₹70.20 crore in Q1 FY26.
The increase was primarily attributed to interest income and investment returns.
Meanwhile, total expenses declined by 15.8%, from ₹25.69 crore to ₹21.62 crore.
The company reported exceptional items of ₹0.05 crore during the quarter, compared with ₹96.06 crore in Q4 FY26.
Consolidated Profit Rises 136%
MMTC’s consolidated performance also showed significant improvement.
Consolidated net profit increased 135.5% year-on-year to ₹104.24 crore, compared with ₹44.26 crore in Q1 FY26.
Consolidated profit before tax rose 152.6% to ₹135.06 crore, while basic EPS increased to ₹0.69 from ₹0.30.
| Consolidated Financials | Q1 FY27 | Q1 FY26 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹0.68 crore | ₹1.36 crore | -50.0% |
| Total Income | ₹146.12 crore | ₹71.56 crore | +104.2% |
| Profit Before Tax | ₹135.06 crore | ₹53.47 crore | +152.6% |
| Net Profit | ₹104.24 crore | ₹44.26 crore | +135.5% |
| Basic EPS | ₹0.69 | ₹0.30 | +130.0% |
Auditors Raise Qualification Over Anglo Coal Matter
Despite the strong profit growth, the financial results contain an important audit qualification relating to the Anglo Coal matter.
Statutory auditors Dinesh Jain & Associates have issued a qualified conclusion concerning the accounting treatment of the case.
MMTC has ₹1,088.62 crore deposited with the court in connection with the matter. The Delhi High Court, on November 10, 2025, ordered the release of ₹1,000 crore to Anglo Coal.
The remaining amount, involving differences related to foreign exchange rates and withholding tax, is scheduled to be considered by the court on September 22, 2026.
According to the auditors, MMTC’s estimated remaining liability is ₹170.58 crore, while the company has recognised a provision of only ₹87.76 crore.
The auditors therefore stated that provisions were understated by ₹82.82 crore, with a corresponding overstatement of contingent liabilities.
Management Disagrees With Audit Qualification
MMTC management has disagreed with the auditors’ assessment.
The company said approximately ₹259.74 crore in interest has accrued on the deposited amount and maintained that no probable outflow is expected for the differential liability.
The company has also stated that the matter remains subject to judicial adjudication.
Other Matters Highlighted by Auditors
The auditors also drew attention to other matters in the financial statements.
CPF Trust Advance
MMTC had extended an interest-bearing advance of ₹40 crore to the CPF Trust for VRS payments.
The company received ₹35.50 crore up to March 31, 2026, while another ₹3.56 crore was adjusted against capital loss on April 28, 2026.
The remaining amount is expected to be repaid after the trust receives funds from its investments.
Chennai Port Authority Payment
MMTC paid ₹5.43 crore on July 17, 2026, towards shortfall charges related to land allotted for iron ore shipments in 2010.
The payment followed an AMRCD decision dated May 12, 2026.
Subsidiary and Joint Venture Developments
MMTC’s wholly owned subsidiary MMTC Transnational Pte Ltd (MTPL), Singapore, is currently under liquidation.
The company’s financial results for the quarter were not received because control has been taken over by the liquidators. MMTC has made a full provision of ₹3.14 crore against its investment.
Several joint ventures have also not been consolidated because financial information was unavailable or provisions had already been made.
These include:
- MMTC Gitanjali Limited – 100% provision made
- Sical Iron Ore Terminal Limited – 100% provision made
- Free Trade Warehousing Private Limited – 100% provision made, with financials not received since March 31, 2022
Shareholding Pattern
As of Q1 FY27, the Promoter and Promoter Group held 89.93% of MMTC’s equity, while public shareholders held 10.07%.
The company has 150 crore shares outstanding.
MMTC also reported that no investor complaints were pending, received or disposed of during the quarter.
About MMTC Limited
MMTC Limited is a Government of India enterprise under the Ministry of Commerce and Industry and one of India’s major trading companies.
The company is involved in international trade across commodities including precious metals, metals, minerals, coal, agricultural products and fertilisers.
With its pan-India presence, MMTC remains one of the country’s prominent public-sector trading enterprises.
Bottom Line
MMTC delivered a strong improvement in profitability in Q1 FY27, with standalone net profit rising more than 155% and consolidated profit increasing more than 135% year-on-year.
However, the Anglo Coal audit qualification and related ₹82.82 crore provision gap remain important matters for investors to monitor as the company awaits further judicial developments.
