MSTC Limited (NSE: MSTCLTD) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Bhanu Kumar — Director Commercial
Deepak Modi — Director
Subrata Sarkar — Director, Finance
Analysts:
Unidentified Participant
Sourabh Ginodia — Analyst
Anand — Analyst
Yash Naik — Analyst
Kuldeep Singh Sidhu — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to MSTC Limited Q3FY26 earnings call. As a reminder, all participants lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Deepak Modi. Thank you. And over to you.
Deepak Modi — Director
Good morning everyone. On behalf of Victoria Securities, I welcome you all to Q3FY26 earning conference call of MHDC Limited from the management we have with our student Mr. Manubendra Ghoshal, Chairman and Managing Director, Ms. Banu Kumar, Director Commercial Mr. Subrata Sarkar, Director of Finance and Mr. Ajay Kumarai, Company Secretary. We will begin the call with the opening remarks from the management and then we will open the line for Q and A. I now. I now hand over to Mr. Manu bend over to you sir. Thank you.
Bhanu Kumar — Director Commercial
Good morning. Good morning. To all our esteemed stakeholders, it’s my pleasure to be able to thank you that the company has been able to maintain the momentum of the last two quarters and achieve a nearly double digit growth on total revenue as well as EBITDA here on as compared to the same period last year on a nine month basis. Now, leaving aside the recurring exceptional item of income from the strategic disinvestment of FSNL that happened last week, the PAT has also shown an increase of nearly 10 to 11%. What’s heartening is that the growth of revenue from operations has primarily been driven by the E Commerce segment which is a result of the consolidation that we have been undergoing over the last few years.
We have also been able to clearly define our Blue sky areas as basically that of software platform development, particularly in areas that are Portuguese to our E Commerce operations. As we have mentioned during our last investor interaction, MSTP has been awarded the work of developing and operating the country’s first exchange for trading EPR certificates. This project on behalf of CPCB is now in a fairly advanced stage with the Life site already operational and trading expected to begin in the coming fiscal year. This should also open the doors for MSCP not only for inclusion of more commodities to be covered under the EPR framework on this exchange, but also give us the expertise and bolster our credentials to develop and operate more such electronic exchange platforms in the future.
We had informed our stakeholders earlier that MPP has been selected by BGFT for developing an electronic platform for transparent allocation of tariff rate quotas for gold bullion imports. I am happy to inform you that the first branch of gold bullion allocation has successfully been completed on our platform and further events have now been scheduled by pgsc. Another initiative that we have been working on as a travel which we intend to introduce also in the new financial year. We intend to make the travel booking experience seamless and responsive as a key differentiator. Now, with respect to major business highlights during the quarter and the future outlook, I will request our Director Commercial to brief you followed by Director Finance to briefly summarize the financials so far.
Before I hand over, let me also update you about our joint venture mmrpl. As you are aware, over the last few quarters there has been a slew of measures taken by MMRPL’s management to rationalize costs and simultaneously try to drive revenue growth. As a part of this, an RVFS unit at Noida which was imparting a very high running cost has been closed. A new one has been started is being started at Kalyan. Apart from this, slighter inventory controls and OEM driven rise in volumes of feedstock are now visible which is on the positive side. Needless to say, we are monitoring the trend very closely and I’d like to report that the net loss has been reducing sequentially over the last few quarters.
With that I’d like to hand over to Mrs. Manu Kumar for her updates.
Bhanu Kumar — Director Commercial
Thank you. Good afternoon everyone. So the key highlights are that the operational performance of standalone basis is 125.55 billion INR during the nine months of this current F1. The EBITDA translates to about almost 200 crores in the nine months. Visa was 182.41 crores in the previous year for the same period. And profit before exceptional items also there is an increase by about 17 crores. The consolidated accounts also more or less gives the same kind of picture after accounting for the loss from the MMRPL. So the profit stands at 170.94 compared to 187.61. Now the major business highlights has already been highlighted by our team in the inaugural address.
But some of the other developments are that we have signed a key agreement with the Master Vaishnavi Shrine Board for sale of spacious methods. This is of course a very regular auctioning kind of portfolio that we have been doing for years. But the new addition definitely paves way for more such temples and shrines to come into our home. Apart from that, the ELV sales has also picked up now with the ecosystem improving, the number of vehicles coming through scrapping is also going up. We have also signed agreement with the Ministry of iOS and Information Commission.
These are of extra districts. Apart from this, we have sold about 3.5 million tons of INO for NM and we also allocated about 22 coal blocks in the 13th and 14th round of initial coal block options. Earlier the participation was a little limited, but this time it has been successfully done. As already highlighted for DGFT we have done the test allocation for gold Julian. We expect that this will be encouraging and it will be saving for future commodities like silver and now sandlock Also for subscribers, this is the first time sandlock allocation has been done.
This is through a different methodology from both the up and R. Out of the 21 mines put up for critical minerals, so far the technical bids have been received for 17 points. We have also auctioned some prime properties for Hyderabad Metropolitan Development Authority and the outcome is very favorable and HMDA is. Quite impressed with the performance. MSNP has also done about 13 events for the DMG of Tamil Nadu. Mainly livestock block and 12 limestone blocks are composite lines. Now as already highlighted, the one thing that one major project that we have we are very buoyant about for the next fiscal is PPCB Electronic Trading Exchange. As of now, five categories of materials have been identified and for which the EPR framework is already operating. But in the coming years, in another one or two years we expect that another three to four categories will be added. So that will be a very robust framework.
And the electronic exchange we expect that will perform well in terms of not just revenue, in terms of profit and in terms of our credibility in such exchanges. Establishing exchanges. We have also thought of impact of developed a platform for travel. Basically what was happening is the government had a different kind of ecosystem and the private sector had a different ecosystem for travel moving. So we want to offer a unified platform where whether it’s the common sector or the private individuals, either for business or for individuals. Both B2C and B2C we are developing this platform and as already highlighted the three differentiator here we want is we want a very robust kind of interactive and responsive platform.
So we will be able to launch it by April or so and after that definitely there will be improvements on that platform. So the revenues also will start coming in from the next year. Apart from this more or less the regular business is going on scrap sale. This year has been a little better than what it was in previous quarter three years and nothing more. To add to the business highlights as of now. Thank you. So I’ll hand over to Mr. Sarkar for the financial highlight.
Subrata Sarkar — Director, Finance
Yeah. Good morning everybody. This is as already described by our Windy and latter commercial on a flatter trajectory growth but we had a revenue increase of 9.8% up from 275.47 to 302.67. Mainly growth can be seen in the E Commerce where we have growth from growth of similar growth of 9.26% from 197.91 to 216.23. And of course expenses also grew by 3.38% and others are also grew by 11.38%. EBITDA as a result of this plus and minuses has grown up from 182.41 to 199.95 that is growth of 9.61% and depreciation almost remaining on the same flat that is 7.6% as compared to 694.
Comparative year profit and loss before exceptional item and taxes stand at 192.29 as compared to 175.29 a growth of 9.70%. But this is the main indicator where we have to concentrate for comparison because DBT before taxes in the previous year there was an exceptional item majority in the form of sale proceeds of our investment 272.5 crores majority comprises of that with that that earlier period pvp was 448.92 and this year it is 192.29. So if we have to compare in the two periods we have to take the pvt before exceptional item then after tax the profit loss after tax is 145.89.
Earlier it was 235.91. So again we have to eliminate the factor. So if we eliminate the average rate of taxation so here also we have growth from around 130 and 31 crore to 145 189. Almost a growth of around 10% in the PAT factor if we eliminate that factor and who by the segmental segmental wise so again that E commerce has taken a front piece because it is, it is, it is. It is a time business that we are doing a growth of 9.26% from 197.91 to 116.26. Other income also shown a similar growth of around 11.34% from 76.30 to 84.95.
Marketing remaining stagnant and expenses only grew by 10%. And that to the notes we can refer our notes and accounts are ones that was around 2.39 due to some change in the gratuity rules. It is not that significant growth and matching with the around inflationary part that we can take and with that pat against that 135.89 compared to 235.91. But if you have to eliminate that portion of exceptional items again there is a growth of 10% that was earlier stated. If we go to the consolidated path. And right now as our subsidiary has been disposed of, we will digest it fully. We have only one line item comprising of our joint ventures single joint ventures I.e. mahindra and Private Limited slightly on a planned project. Last year the loss was 4.5 crores. This year our share of loss is only 4.68. So no major changes. But we are expecting as CMD informed the shareholders stakeholders that there was positive growth in the form of that loss has reduced on quarter to quarter basis. So it has come down in the this quarter as compared to last quarter.
So that thing our consolidated profit after tax to that 131.21 as compared to 31.56 last last year. And with that we can go to the standalone summary PLS statement because standard consolidated are almost same except for that here you can see that revenue from operations has grown 12.95% from 222.10 to 252.8 growth of around 13%. Other income, the supply of data 51.8 months from 53.37. Employee benefits, salary and medicine grew by 9.04% compared to to 72.91. There was no finance cost this year. This year and depreciation almost no growth was around 10%. But it can be taken as a platform from 6.94 to 7.6.
There was no provision. Consequently the good news for that things are getting realized as was earlier calls also that with the raising of this trading business there will be lesser probability in our book account and other expenses that 29.81 as compared to 26.19 growth of 13.82. Of course it is because of the growing operations that is going on. And with that profit and loss stood at 145.89. So as already stated, it’s a growth of around 3% if we eliminate the exceptional item part. So thank you very much for that. So let me now hand over to the caller for the QA.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sourabh Ginodia from SMIFS limited. Please go ahead.
Sourabh Ginodia
Yeah good morning to the senior management and thank you for giving me the opportunity. Sir, my question is on the E Commerce vertical if we see the growth rate in the last three quarters in Q1 we have grown by roughly 13% in the YOY for the E commerce vertical and in Q2 the growth rate was 10% but in quarter three the growth momentum has slowed down to 4% YOY growth and further there is a decline of 5% sequentially. So sir, my question will be why the growth rate has moderated in quarter three and when do we expect the E Commerce vertical to grow in double digit and what will be the key growth driver for the same? This will be my first question.
Bhanu Kumar
See actually in the first quarter if I can recollect the main contribution to E Commerce there was some failover of sale that happened in the last quarter of last year because of which the growth was much more than what we had anticipated. See I don’t think we should be analyzing it quarter to quarter as far as E Commerce revenue is concerned what happens is, you know, lot of factors come into play when we offer our services for auctions. So you know, the state government and the policy matters and all those things. So I don’t think there is any cause of worry and it’s not a production company that will start worrying when 1/4 moves down.
So if you see in an overall level year on year I’m sure that I will be able to contain that 10% growth that we have seen in the nine month comparison. So I don’t think it’s right to interpret on positive.
Sourabh Ginodia
Do we expect growth rate to be in higher double digit going forward anytime soon?
Bhanu Kumar
Yeah, as we pointed out in the inaugural address itself, the new exchange that we are developing for cpcb, the APR trading exchange we are expecting that it will contribute quite significantly in the next financial year. There again Q1 Q2 we’ll have to wait and watch how much contribution is coming up then probably we will be able to estimate as to what can be the contribution towards the overall E Commerce revenue in the next financial year. So we are very optimistic about this exchange and definitely we are hoping that there will be good double digits.
Sourabh Ginodia
Okay, so next year FY27 can we expect growth rate to accelerate over FY26?
Bhanu Kumar
Probably after few months Q2 we will be able to give you a clear by Q2 the Techn will be stabilized to some extent. See any software, anything, it always has. So the initial five to six months people have to get accustomed to the portal. People have to start actually actively trading and all those things will happen. There will be problems probably some policies five months so those things will be there. So by Q2 we expect that the exchange will be stabilized and we will be having very good revenue from the exchange.
Sourabh Ginodia
Okay, so now my second question will be in the recent budget there is an announcement of 20 year tax holiday for foreign companies utilizing the Indian data center to serve the global customers. So how do we see this opportunity?
Bhanu Kumar
At this point of time our data center and our data center capacity has been is being primarily used for our own internal requirements. Now that plus with some of the initiatives that we have been working on. They would. Requirement of increase in our own data center capacity. So the issue of using that capacity as a monetizing capacity for external customers is not something that we are considering right now in the short term.
Sourabh Ginodia
Okay, and what will be the estimated CAPEX for this year and next year and anything if you can share on the dividend payout.
Subrata Sarkar
So let me answer your second question first dividend payout clearly spelled out in our policy that is 30% of the flat or 4% of the network which is as per income guideline. Right. So this will be at least the minimum dividend that company will pay. Balance will depend upon the scenario and of course the decision of the board in this regard. But minimum is clearly spent out that is very much transparent so far the government company is concerned and there in the public domain also. So that is one part second part in the CAPEX part we had our corporate building constructed this year in and we are in the process of augmenting our resources like systems, server etc.
So there will be some amount of capex that is depending upon the situation time to time and of course that we will let you know and it’s just starting of the year so we are trying to figure it out what is the requirement and as you have just been told by our CMD and commercial that CPCB exchange is coming up and other similar things might happen. So with that there will be obviously requirement of capex capex and certain Amount of OPEX also. So with that obviously we will keep on making certain captures and for that we’ll have our cash flow is available.
And.
Bhanu Kumar
Here I would just like to add another aspect that traditionally MSUC has been asset Light company and most of the capex that is expended apart from you know exceptional items like this new building which happened in the last six months is on end of life replacement cost basically hardware and software of our electronic of our backbone. So that is something which is a fairly recurring expenditure and is not very high as since we are not a manufacturing or a production entity.
Sourabh Ginodia
Okay, any thoughts of utilizing the surplus cash? Because we will be generating lot of free cash flow going forward. So is there any plan specific plan are we considering for any stock buyback or any other plan which you can share for utilizing this extra cash?
Subrata Sarkar
Yeah, anything that is basically typically for what you told about buyback etc that is decided as a norms that are coming of India and so for other inflation parameters are concerned. So what as I mentioned earlier there will be. There will be a larger amount of project also that we are expecting so and so far guidelines are concerned. It is the Government of India Department of Investment and Public Asset Management to come and give you guidelines. They will guide us and so far that is the main and time to time board. Obviously we decide about the installation of gas but the main thing would be just to wait and there will be some kind of project that is coming up that will require some amount of also.
Deepak Modi
Okay. And sir, my last will be one request. As shareholders we have been requesting the senior management for a corporate presentation since last one year. So if you can just consider putting up one corporate presentation where we can have a complete description about the company that will help you shareholders to have better understanding of the business of the company.
Bhanu Kumar
The point is taken that yes, we will implement this over. We will try to implement this in this quarter. So that because apart from other normal operational operations the over the last one year the company has also been going through a stage of consolidation of tapering down certain elements of business of the disinvestment of 100% of subsidiary was going on. So at this point of time we are quite clear about the way forward and we will put in a presentation putting in the broad outlines of that so that as you said it would be useful for.
Stakeholders as well as existing stakeholders.
Sourabh Ginodia
Yes, a five year vision maybe from the senior management. If we can put up in the presentation and can get uploaded on the stock exchange as well as on the company website will be quite Useful to everybody.
Bhanu Kumar
Your point is very big.
Subrata Sarkar
We will work on this.
Sourabh Ginodia
Thank you sir.
operator
Thank you. The next question comes from the line of Prashant, an individual investor. Please go ahead.
Unidentified Participant
Sir, I just have one small question. As on 31st of March 2025 the assets, property, plant and equipment stood at around 53 crores. Which increased to 196 crores. As on 30th of September 2025. So the increase is around 150 crores. If I understand it right, it was the disaster recovery site at Delhi. Will it fetch any additional revenue?
Subrata Sarkar
Actually you are little bit correct. But not fully correct. It is basically we have had a corporate of constructed at World Trade Center New Delhi. So that is the main investment there. That’s why it has increased. And answering to your second question. So Rudy, I answered in yes. You know living in Delhi and having hitting the higher management at Delhi will fetch more and more business. Of course the result will be little bit later on will be reflected in our financial statement. But sitting at Zimbabwe in a capital hub certainly gives a positive advantage to a company like MSPP to face more and more business by largely with the stakeholder.
So my answer in that way is yes. But like you say correlate with this and this like plant and mission. It is not that way. It is like a business hub that we are creating over here. Secondly, we are had also had a big team over here to look after the ongoing project. So obviously we are looking forward to more and more revenue and more good project in future.
Unidentified Participant
Okay. Okay sir. Thank you.
operator
Thank you. The next question comes from the line of Anand from Mount Intra Finance. Please go ahead.
Anand
Hello. Yes sir. You are audible. I just had one small question. Your employee expenses have increased 20% year on year. It’s probably the highest. So is this going to be steady. State or should we consider more increases? Yeah.
Bhanu Kumar
Actually just let me from where is.
Subrata Sarkar
On a nine month basis it is increases 9%. No, no, no. I’m.
Bhanu Kumar
I’m comparing Q3.25 to Q3.26.
Subrata Sarkar
I mean there’s no problem. But if you compare on smarter to smarter basis it will give me a very picture. This small picture. But I think you have also read a note in our financial statement which stated that there was one size. Which has increased from 20 lakh to 25 lakh. That is the major cause of increase. That’s fine. Yeah, that’s fine. I’ve got my moderate in that way, right? Yeah, I’ve got it. Thank you so much.
Anand
No other questions.
operator
Thank you. The next Question comes from the line of Yashnaik from Kamayaka Wealth Management. Please go ahead.
Yash Naik
Thank you for the opportunity. So I just want to understand deciding the new people that we are planning to launch which is the trial booking for the government employee. So if you could make me understand how is the revenue model. So are we charging on the transaction fee or it’s a onetime implementation cost plus AMC type of model.
Bhanu Kumar
Just as I as well as for the private businesses and individuals. Obviously the revenue model from both will be slightly different. It will be built into the system and based on the services that is offered for you know, this revenue stream there will be multiple revenue streams. So it can be built into the system in the ticketing cost itself or as a platform fee or it can also be through, you know, other means like and you know, revenue sharing with other stakeholders. So there are multiple options available to us. We are still mulling over all the options available.
It’s not concretized now as far as government business is concerned. This has to be through a management process with the Ministry of Expenditure, Department of Expenditure. So that is a slightly long process. We take. We expect that it will take about four to five months for us to get a balance. They’re already on the job. So government business may come only after about one or two quarters. But the individual, the private business we are expecting right from the next fiscal year.
Subrata Sarkar
And if you make me like I just want to understand our growth driver going ahead. So if you could underline any top 3e commerce like platform of ours which can able to drive the growth for let’s say the next 20, 24 months.
Yash Naik
So if you could able to make. Me understand what are our growth drivers.
Bhanu Kumar
We are actually very optimistic about the exchange that we were talking about right from the beginning of this phone call. So this ETP exchange that we will be having for the EPR trader is something that we are very optimistic about and we expect that to contribute quite significantly from an exchange.
Subrata Sarkar
So can we expect it from the second half of FY27 or it’s from this we can expect from H1 itself.
Bhanu Kumar
The revenue revenue starts moving right from the Q1 of next financial year if everything goes as planned, but the actual growth will happen after it stabilizes over a period of two quarters.
Bhanu Kumar
Oh, meanwhile, meanwhile as far as the E commerce segment is concerned, craft iron ore and coal have always been the main drivers of our E commerce revenue stream. And that is something that we expect will continue for the next two years at least.
Yash Naik
Okay. Okay, thank you so much.
operator
Thank you. I reminded to all the participants that you may press Star in one to ask a question. The next question comes from the line of Sidhu from Wealth Aggregator. Please go ahead.
Kuldeep Singh Sidhu
Yeah. Good afternoon. Thank you for the opportunity. My first question is how will the AI platform implementation support the E commerce business in terms of improving operational efficiency and revenue growth? How do you expect this? Can you be louder and repeat the question? Yeah. Am I audible? Yeah. Yeah. How will the AI platform implementation support the overall E commerce business in terms of improving operational efficiency and revenue growth?
Bhanu Kumar
We’re talking of AI.
Kuldeep Singh Sidhu
A platform implementation in the E commerce business. Means if we implement a in the E commerce business could we improve our operational efficiency and revenue growth?
Bhanu Kumar
It is already there augment the business which will lead to more automation. So definitely, definitely operational efficiency will improve. The user experience will be better. Customer will be happier obviously so that we expect will drive to better growth in the future. We are already using certain tools and definitely more analytics and AI is welcome and we are exploring various options available for us.
Kuldeep Singh Sidhu
Okay, and my second question regarding MSTC and Mahindra Joint venture. What is the expected contribution to revenues right now?
Subrata Sarkar
Revenue generally what contributed. As you can see our consolidated financial statement we generally consolidate the loss posture. So profitable loss, whatever that thing currently is a loss. So it is around 4 crore. But again what I mentioned earlier also the loss from quarter to quarter basis is going down. So with that we are hopeful that is that will be very much been a positive side that we can see that we can see that is in the quarter two this was. This was a loss share of loss was 1.65 crore in this quarter it is share of loss is 1.05 crore and the corresponding period of last year it was 1.57 crore loss share of loss.
So it is this is a positive step and we hope that it will be converted into have positive one in the coming days.
Bhanu Kumar
Regarding I’d like to also mention a few other things. One, despite competition from the unorganized sector, volumes of feedstocks have started going up which has basically been driven by the OEMs under the EPR framework. So that is a positive. Apart from that internally in the company very much tighter inventory controls have been implemented and rationalization of fixed cost. So large units which were not so profitable have been closed, smaller units more profitable, more agile units opened. So these basically optimize the volumes that are available at different geographical locations. And all of this have already started showing as Mr.
Sarkat pointed out that there has been a reduction in the net loss going forward, which we are optimistic that will continue and bring the company in onto much more.
Kuldeep Singh Sidhu
Okay, thank you. That’s all.
operator
Thank you. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to management for closing remarks.
Bhanu Kumar
At the end of this conference, I would like to convey our stakeholders for being with us today asking us these questions. Because as I always say, these are the questions which force us to introspect. Find out what we are doing right, what we are doing wrong and code correct relevant. So once again, please keep those questions coming. Thank you very much.
operator
On behalf of Icurus Securities Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you. Thank you. Thank you.