Mstc Limited (MSTCLTD) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the MSTC Limited QPO FY26 Earning Conference Call. As a reminder, all participant lines will be the listen-only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Steve Modi from Equary Security. Thank you a note to you, sir.

Good morning, everyone. On behalf of Equirus Securities, I welcome you all to Q4FI26 Unreaching Conference Call of MHDC Limited. From the management side, we have with us today Mr. Manubhendra Ghoshal, Chairman and Managing Director, Mr. Subrata Sarkar, Director of Finance, and Mr. Ajay Kumar Rai, Company Secretary. We will begin the call with the opening remarks from management, and then we will open the line for Q&A. I now hand over the call to Mr. Manubhendra Ghoshal. Over to you, sir.

Thank you. Good morning, please. So, good morning to all our extreme stakeholders, and a warm welcome to this morning's investor conference. So, despite a considerable amount of global macroeconomic uncertainty, it is my pleasure to be able to report that MCT has been able to end the year with good numbers. We have received a figure of 370 crore. From revenue from operations, which is the highest in the last four years. Your company has been in the process of consolidation over the last few years, and over this period, has identified and taken positive action as to which segments of business activity we needed to grow out of, and where we needed to increase our footprint, and also to identify areas. which we believe are organically related to our own strengths and build upon. So, as a part of this, we are now in the final stages of exiting from the marketing and trading business and coupled with the strategic disinvestment of FSNL at the end of last fiscal, we are moving forward to being primarily an e-commerce company, pouring further into areas of creating electronic platforms. The two major such platforms that we are working on, the EPR, ETP, which we have already developed, and the next part of our digital project line is a travel portal which is also in the final developmental stages, and which we expect to launch shortly. Now, apart from this, we are working on some further possibilities on similar lines about which we will be able to update you as we come to a formal stage of production or completion. With respect to the financial, we have been able to maintain EBITDA percentage at a similar level year-on-year. Despite competition, and with the overall global macroeconomic uncertainty looming over the last two quarters, and the challenges of scaling up, we have still managed to maintain it at the same level. Apart from this, there has been financial impact on the sounds of statutory obligations. What I'd like to emphasize is that these constraints notwithstanding, your company has been able to increase bank levels year-on-year by about 23%, taking out the contribution of the one exceptional item of FY23s, that is the speech-soft, as it said, is strategic disinvestment. Now, on the business outlook front, The ATC for EPR certificate has been developed and tested, with all accessory integrations also in place. The portal is ready and is now awaiting formal approval and non-application. As I have said earlier during other conferences, once the platform was operationalized, it would open the door for further commodities to this similarly onboarded or EPR certificate training on the portal itself and also accord an opportunity for us to bid for developing and operating more such portals and exchange platforms in the future. This would open up the vista of an entirely new business vertical for the company. On the same lines, we have been looking at what we think is a very promising opportunity of creating a seamless, mainly B2B, portal for travel and logistics, covering the entire value chain of travel, accommodation, and associated services. This portal is also in its final stages of testing, and we expect to operationalize it shortly in the B2B space to begin with, and then extend segmental reach as we gain traction. We've named this offering as UACC SmartTrend. In this case, we are working on some other areas such as end-to-end transaction advisory for asset value liberalization for PSUs, government departments, and private entities. For this, we have tied up this SBI cap to mutually work for providing such end-to-end solutions, leveraging each other's domain expertise. Our business development teams are also working on other basic possibilities which leverage our domain expertise and supplement the same-way technology. Including possibilities of AI. In the context of a 50-50 joint venture with Mahindra and MMRK, I am glad to inform you that the efforts put in by the manuscript to streamline operations In terms of geographical speed pattern. The financials for the last three quarters have been consistent and encouraging. Even though the net loss has been progressively reducing sequentially, we are still monitoring the operational financial derivatives very closely, but we are hopeful.

We will now begin the question and answer session. Anyone who wishes to ask question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 Vedant, an individual investor. Please go ahead.

Good morning, sir.

Congratulations on a great set of numbers.

I'm talking about the consolidated numbers and e-commerce in precision. So, from the past couple of years, the e-commerce revenue has more or less been flat. I mean, in 2023, it was 350 crores, and from there, for a couple of years, it has been around 350 crores only. So, it is only for this quarter that we have grown significantly. So, do we see this growth in the e-commerce continuing in the coming year, FY27, and what percentage we are looking at in the growth in FY27 in e-commerce retirement?

Right. First of all, e-commerce, yes, you are right. We have been on a plateau for some time. Of course, the growth, as you pointed out, has been in this year. Now, we have always been looking at e-commerce in terms of incremental growth because it is not something which will lead to a very high growth, which is one of the reasons why we have been trying to consolidate and also look for So, as far as e-commerce is concerned, here on, we shall definitely be looking at growth.

Streamlining have been working from the past couple of years. So there's this stream, EPR trading platform, where, you know, electronic trading platform for EPR certificates. So EPR trading platform plus other avenues which we are planning to develop, do we see the revenues from, you know, these streams coming in the F by 27 onwards? And if you can be precise, how much or more or less, what amount of revenue shall these schemes generate in totality?

Again, as I said, it would not be appropriate to give number-type discourse.

I mean, this is very new for me. I have anything about it. I try reading about it too. But is it significant? The revenues would mean something to our top line, you say?

Thank you.

Riven News. My question might sound naive, but I still nevertheless will carry on. So, there's this third question. And the losses have been significant. To mitigate these losses or probably, you know, check. Go about it, and what are these actually? Yeah, it is basically, if you see, Right now, whatever the losses are, will certainly reduce in the coming future as the accounting standards set in line. Thank you.

A reminder to all participants that you may press star and want to ask question. As there are no further questions from the participants, I now hand the conference over to the management for the group.

Thank you. So, as to sum up, I would really be nice to explain.

Hi, sir. Sir, there are two people joining the queue. Would you like to take them?

Certainly.

Okay, sir. The next question is from the line of Harish, an indigent investor. Please go ahead.

I just wanted some clarity on the EPR trading, right? Could you give us the number, what was the total amount of EPR traded last year? So that would give us an idea of the market because the numbers floating around, I mean, I was doing some research and the numbers are basically way too high. So, I just wanted some understanding.

So, Harish, that is basically why the government, I think, wanted a transparent e-trading platform to be put in place. Because whatever are the numbers... So.

Are we talking in 100 crores or the total market?

Yes, it's not very difficult numbers. So that's a very reading question.

Okay, and would our revenue be a function of the total transaction value, or would it be even?

No, it will be just on the key days.

Okay, for transaction fees, basically, like exchanges, essentially.

Thank you. The next question is from the line of Sakeet Chain, an individual investor. Please go ahead. Hello.

Hello, sir. Thanks for the opportunity. Am I audible?

Yeah, absolutely, Sakeet. Please go ahead.

So, I just want to know, as for the Wuhan portal, the scrappage for the year was around 2 lakh volumes. Right. And the opportunity which was highlighted in the NITI-IO portal published in January 26, they were appreciating that it will be around one crore volume for the year. So it's almost only 2% of the total potential. Can you brief how we are able to tap that market and what are the roadblocks and is that we'll be able to remove the roadblocks by the ELB policy which is already in place?

Right, Sakmit. So, first I think you need to be clear about that MSVP is a small part of the major ecosystem of ALVs cafes in India. Major stakeholders in this case happen to be the states who have to put in place certain regulations related to framework as well as facilities to be able to cap the market of DLV for ethical and controlled scrapping. Now, that is something which is an evolving landscape. It is happening across states, but obviously it has happened at a rate slower than what was originally ratio-length. Now, as far as when that ecosystem is in place across, now MSTC portal is the one which is mandated for Thank you. So, as far as the rising and ease of vehicles is concerned, this would be dependent on the policy framework and the incentives that are put into place by the government in a federal structure in various respects and so on. Once those are available, Are we seeing a traction?

Because in the last year, in 2024-2025, it was only 70,000 vehicles, which were scrapped over the years, and the current year is almost more than two laps. So, are we seeing a traction? So, are we seeing a traction? To us, if we thank you. The article, news article, where SBI CAPS is the transaction, is the financial advisor for the Kolar Gold Pits Auctions, KGF, Gold Mining, the 30, 33, the Tailing Dump. So, will MSTC will be also being a participant to that or?

We have been working with the Ministry of Mines as well as with SBI CAPS for multiple... Uh, uh... Such opportunities. And at the appropriate stage, it will be notified by the ministry.

Okay. Okay. Fine. Fine. Thank you. Thank you. Thank you very much. Thanks for the opportunity. Thank you. This is an area we do work in.

This is an area we do work in.

Thank you, sir. Thank you. The next question is from the line of Harish, an individual investor. Please go ahead.

Yeah, so I have some follow-up questions. So, we are hearing about a new coal exchange coming up. So, will it, how will that impact our coal option revenue?

So, this is something that's the very, very initial stages, and we shall be watching these developments closely to see how they impact our revenue streams going on. Coal does form a significant part of our revenue stream. So, this is something that we would be, obviously, watching closely and also taking appropriate decisions to try to be a part of that ecosystem, as it is. It is a very initial thing. And, obviously...

So, but essentially, we will be computing for the same volume, right, in the spot market.

So, we are still nobody at this point of time certain about how the entire ecosystem is going to evolve. Stakeholder consultations are all. So, once that comes into the realism, We have a lot of... Thank you very much.

If I look at the business, the organic business minus the PPR vertical, which will come up from this year, how do you look, you know, two, three years ahead, how do you look at the organic business growth? So, as I said earlier, Double-digit growth on the handle, like the organic business, or does it include the new vertical Double-digit growth for the current business, then whatever new business we win will be on top of that.

Yes.

Thank you.

Thank you. A reminder to all participants that you may press star and want to ask questions. The next question is from the line of Urvish Kotari and Engineering Investor. Please go ahead.

Hello, sir.

Thanks for the opportunity. Sir, my question is on the EPR portal and the portal that we are developing for travel, which we are competing with Balmer Lorry, right? So, what is the current state of the – sorry, I joined late, so you might have covered this question. But what is the expected timeline to go live for the travel portal? And right now, I think, Balmendore is clocking around 250 crores of revenue yearly. And what we are targeting and what are plans to penetrate this market?

So, obviously, our offering is what we should be looking at to be able to make a significant dent in this market. The portal and the travel portal is in our final stages of testing, and we should be able to launch it for the B2B segment in some time. As far as revenue is concerned, that is something which we would not like to speculate about at this stage, but we are definitely, we see it as a good business opportunity, which is the reason that we have decided to develop.

Okay, so that We are planning to live this in quarter 1 or quarter 2, the travel portal.

We are already in quarter 1, and as I said, they are in two stages of editing it. We will be running it down.

Yeah, and sir, for ERP portal, EPR portal, are we planning quarter 1 or quarter 2 go live?

That is, as far as the portal is concerned, it is ready, it is integrated, and we are waiting for a go-ahead for 8-2-1 operation.

Yeah, I can see that they are showing EPR portal as trading will be shortly started, so I just wanted to confirmation from you.

Okay, I think this is all from mine. Thanks a lot. Thank you.

Thank you. A reminder to all participants that you may press star and want to ask question. As there are no further questions from the participants, I now hand the call to the management for the closing comments.

Thank you. And as I said, I really appreciate your questions because this basically makes us question, ask them, and look for what we are doing right and what we are doing wrong. So please keep time coming and we hope to do better for you and your company in the coming quarters and the coming crisis. Thank you very much.

Thank you.

Thank you. On behalf of Aquarius Securities, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

Thank you. Good day.