TTML Share Price: Domestic Institutions Double Holdings Over Last One Year Despite Mounting Losses, Debt - Here’s Why

Shares of Tata Teleservices (Maharashtra) Ltd (TTML) have spiked over 32 per cent over the previous three sessions. On May 23, it climbed as much as 5 per cent to hit an intraday high of Rs 80.50 per share on the NSE, before paring gains to settle flat at Rs 76.72 with a per cent gains.

The sharp rally was accompanied by unusually high trading volumes. Over the three-day rally, TTML’s combined volumes on the BSE and NSE stood at 11.41 crore shares on May 21, 28.79 crore on May 22, and 13.42 crore on May 23. This is much higher than its daily average volume, which typically stays in the range of 20,000 to 30,000 roughly.

This sudden volume spike prompted the BSE to seek clarification from the company. In response, TTML said there is “nothing” to disclose.

“We have always promptly intimated of any event, information, etc., required to be disclosed under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and will continue to do so in future as and when any such event or information occurs in the company. At this stage, there is nothing further to disclose,” it said in an exchange filing dated May 22.

Why Then TTML Shares Are Rallying

According to several media reports, the recent rally in TTML shares has come amid rising market speculation that Tata Sons, the holding entity of the Tata Group, may inject fresh capital into the company.

Manasvi Garg, a Sebi-registered investment advisor, CFA, founder and CEO of Moneyvesta, explains, “The move is expected to help TTML in managing its mounting Adjusted Gross Revenue (AGR) dues, which have ballooned past Rs 19,000 crore and are due by March 2026.”

Increasing Institutional Interest Despite Mounting Losses, Debt

Meanwhile, beyond the near-term catalyst, institutional interest in TTML has been building over the past year. Domestic Institutional Investors (DIIs), mostly mutual funds (MFs), have doubled their stake to 0.12 per cent as of March 31, 2025, up from 0.06 per cent a year earlier. Foreign Institutional Investors (FIIs) have also marginally increased their holdings to 2.54 per cent from 2.46 per cent in the same period.

This comes despite the company posting losses consistently for the past 10 consecutive years, as far as the available data shows. Moreover, the company’s total debt has been increasing year-on-year (YoY), swelling at a compounded annual growth rate (CAGR) of 5.73 per cent. As of March 31, 2025, its debt stood at Rs 20,342 crore. This debt amount is even higher than the total market capitalisation of the company, which by today’s end stood at Rs 14,896.55 crore.

What’s Prompting Institutional Interest

CFA Garg explained that TTML’s strategic pivot toward providing Information and Communication Technology (ICT) services to India’s rapidly expanding small and medium enterprise (SME) sector is gaining traction. He said, “SMEs are increasingly adopting cloud, voice of internet protocol (VoIP), cybersecurity, and enterprise connectivity solutions, all of which TTML offers. As India pushes forward its digital economy ambitions under the ‘Digital India’ and ‘Bharat 6G Vision’ initiatives, companies positioned in this niche stand to benefit disproportionately.”

The Sebi-registered investment advisor further added that TTML’s financial performance in FY25 also reflects some modest improvement. Its FY25 standalone revenue rose by 9.6 per cent to Rs 1,316 crore against Rs 1,200 crore in FY24.

TTML has reported steady improvement in its operating performance over the past four quarters. In Q4 FY25, the company posted an EBITDA of Rs 150 crore, up from Rs 149 crore in Q3, Rs 137 crore in Q2, and Rs 135 crore in Q1.

At the same time, its losses have contracted consistently over the last three quarter. It reported standalone net loss of Rs 306 crore in Q4, narrowing from Rs 215 crore in Q3, and Rs 330 crore in Q2.

Garg said, “Due to these positive developments, institutions have gradually increased their holdings in the company.”

He further added, “The broader Indian telecom industry, while capital-intensive, is increasingly attractive due to ongoing digital transformation and government support. If TTML continues to show operational discipline and secures capital backing as expected, it could emerge as a niche, high-margin ICT player, making current investor optimism more than just speculative enthusiasm.”