MMTC Share Price Falls Over 9% After Profit Decline in Q4FY25 Results

Following a sharp rally in May, the share price of MMTC Ltd. witnessed a major setback on June 2, dropping over 9% intraday. This sharp correction came after the company posted dismal results for the fourth quarter of the financial year 2025, showing a significant decline in both profit and revenue.

MMTC’s Q4FY25 Profit Drops Nearly 97%

MMTC Ltd. reported a consolidated net profit of ₹2.23 crore for the fourth quarter of FY25, a drastic decline of 96.8% compared to ₹69.78 crore in the same period last year. The sharp fall in profit reflects weaker operational performance and possible pressures on the company’s trading activities.

Revenue Slides 64% in March Quarter

Total revenue during the March quarter stood at ₹23 lakh, a steep drop of 64% from ₹64 lakh in Q4FY24. This contraction in revenue signals challenges in the company’s core business, affecting both top line and bottom line.

Read More: Metal Stocks Like Vedanta, Hindustan Zinc, Tata Steel Fall up to 4%!

Full Year Performance Also Weakens

MMTC’s performance for the entire financial year remained under pressure. For FY25, the company recorded a 54.9% fall in net profit to ₹86.63 crore. Annual revenue also declined by 49.6%, slipping to ₹2.69 crore from ₹5.33 crore in the previous financial year.

Share Price of MMTC Reacts Sharply to Earnings Decline

Market Participants reacted swiftly to the earnings disappointment. The share price of MMTC declined as much as 9.14% to ₹77.90 by 3:20 p.m. on Monday. This fall was in contrast to a marginal 0.14% decline in the broader NSE Nifty 50 Index.

Conclusion

The sharp fall in MMTC’s share price following the Q4FY25 results underscores the impact that weak financial performance can have on investor sentiment, especially after a strong rally. While the stock witnessed impressive gains in May, the earnings report served as a reality check, highlighting significant pressure on both revenue and profit fronts. As the market adjusts to this new information, MMTC’s future stock performance will likely hinge on how effectively the company addresses these operational challenges and navigates the uncertainties ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.