MSTC Limited held its Q3 FY’26 Earnings Conference Call on February 12, 2026, reporting sustained momentum with nearly double-digit year-on-year growth in total revenue and EBITDA for the 9-month period. Key drivers included the e-commerce segment, which saw approximately 9.26% growth. The company remains optimistic about launching the CPCB EPR trading exchange next fiscal year, expecting it to significantly contribute to future revenue and solidify its expertise in electronic exchange platforms.
MSTC Q3 FY ’26 Performance Overview
MSTC Limited’s management, led by Chairman & MD Mr. Manobendra Ghoshal, highlighted that the company maintained strong operational momentum through the first nine months of FY’26. On a standalone basis, EBITDA grew by 9.61% to Rs. 199.95 crores (up from Rs. 182.41 crores). Profit After Tax (PAT), excluding the exceptional item from FSNL disinvestment last year, showed an approximate 10% growth.
Segmental Highlights and Operational Wins
The e-commerce segment continues to be the primary growth engine, increasing revenue by 9.26% from Rs. 197.91 crores to Rs. 216.23 crores in the 9-month period. Furthermore, Ms. Bhanu Kumar noted several significant business achievements:
- The first tranche of gold bullion allocation via the DGFT electronic platform has been successfully completed.
- MSTC has been awarded the development and operation of India’s first exchange for trading EPR certificates on behalf of CPCB, which is expected to begin trading in the coming fiscal year.
- The company is developing a unified travel booking platform for both government (B2B/B2C) and private sectors, aiming for launch by April 2026.
- The joint venture, MMRPL, is showing positive trends, with the net loss reducing sequentially over the last few quarters.
Financial Details (Standalone)
Director of Finance, Mr. Subrata Sarkar, detailed the standalone financial performance:
- Revenue from operations increased by 9.87% to Rs. 302.67 crores for the 9 months ending Q3 FY’26.
- Profit Before Exceptional Items and Taxes grew by 9.70% to Rs. 192.29 crores.
- The company’s consolidated PAT stood at Rs. 141.21 crores, compared to Rs. 331.56 crores the previous year (which included significant divestment income).
Future Outlook and CAPEX
Management expressed optimism regarding future revenue streams:
Mr. Manobendra Ghoshal confirmed that while the company remains asset-light, CAPEX requirements will arise, particularly for enhancing the new corporate office infrastructure and supporting the evolving CPCB Electronic Trading Exchange.
Regarding the new EPR exchange, the management anticipates revenue contribution starting in Q1 of the next financial year (FY’27), stabilizing by Q2. The key drivers for e-commerce revenue for the next two years are expected to remain iron ore and coal sales, alongside the new exchange platform.
Shareholder Engagement and Dividends
In response to shareholder requests, management committed to working on delivering a comprehensive corporate presentation detailing the company’s business and a five-year vision, to be uploaded to the stock exchange website.
On dividends, Mr. Subrata Sarkar confirmed the policy remains 30% of PAT or 4% of net worth, whichever is higher, as per DIPAM guidelines.
Q&A Insights
During the Q&A, management clarified several points:
- The Q3 moderation in e-commerce growth (slowing to 4% Y-o-Y) was attributed to the absence of a spillover sales effect seen in Q1 FY’26, and management emphasized analysis should focus on the year-on-year trend rather than sequential quarter-to-quarter comparisons.
- The significant increase in employee expenses year-on-year was largely due to a one-time fixed cost adjustment related to the increase in the gratuity limit (from Rs. 20 lakh to Rs. 25 lakh).
- MSTC is currently not monetizing its data center capacity for external customers, focusing on internal needs first.
- The implementation of AI in the e-commerce business is expected to improve operational efficiency through increased automation and better user experience.
Source: BSE
