MSTC Ltd Reports Q2 2026 Earnings: E-Commerce Fuels Growth Despite Hurdles
Release Date: November 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
- MSTC Ltd (BOM:542597) has demonstrated a steady trajectory of revenue growth on both a year-over-year and sequential basis, primarily propelled by its e-commerce segment.
- The firm has received endorsement from the Director General of Foreign Trade to create an online platform for distributing tariff rate quotas concerning gold bullion imports, underscoring confidence in its technological infrastructure.
- MSTC Ltd has inked a 30-year agreement with Shyama Prasad Mukherjee Port Kolkata to provide e-commerce services, signaling auspicious long-term business prospects.
- The company is in the process of establishing a platform dedicated to the electronic trading of Extended Producer Responsibility (EPR) certificates, which holds potential to disrupt traditional practices.
- MSTC Ltd’s involvement in notable government initiatives, such as the e-auction of sand mining blocks and liquor shop licenses, highlights its robust footprint in the public sector.
- The vehicle scrapping sector encounters substantial challenges stemming from the absence of comprehensive institutional frameworks, resulting in a protracted timeline.
- The joint venture with Mahindra Ato, MMRPL, has not yet reached profitability, albeit with signs of sequential improvement.
- The marketing division has significantly contracted and faces imminent closure, indicating a potential erosion of revenue streams.
- While promising, the EPR trading platform is not anticipated to materially impact revenues in the next 2-3 years.
- Revenue generated from the Kolkata Port Trust agreement remains modest, as it is structured on a small fraction of the total lease value, distributed over the duration of 30 years.
Q: Can you elaborate on the vehicle scrapping business and its prospective value from dismantling government vehicles?
A: Unidentified_4 (Director of Commercial): The scrapping process for government vehicles is sluggish owing to the need for institutional frameworks and incentives.
A myriad of vehicles lack digital documentation, and enticements are vital to stimulate scrapping. The process is somewhat fragmented across states, and while an estimate of 1 million vehicles exists, the timeline remains ambiguous.
Q: What is the forecast for the EPR trading platform’s potential, and are there government regulations to enhance its adoption?
A: Unidentified_4 (Director of Commercial): The EPR trading platform is an emerging venture featuring policy guidelines for five waste categories, with additions anticipated.
The intent is to regulate transactions, which are currently done offline. This platform is expected to revolutionize MSTC’s operations, presenting significant long-term revenue prospects, despite initial cost implications.
Q: Can you clarify the revenue expectations from the Kolkata Port Trust agreement?
A: Unidentified_4 (Director of Commercial): The Kolkata Port Trust agreement involves leasing port land across three decades, with MSTC facilitating auctions. MSTC derives a small percentage from these activities, prioritizing enduring relationships over immediate gains.
Q: What is the anticipated revenue growth for the next three years, and how does the revenue composition appear?
A: Unidentified_4 (Director of Commercial): Revenue growth is projected to be gradual, with new initiatives augmenting this ascendance.
The revenue mix encompasses percentage-based and event-driven earnings, with the scrap business contributing roughly 50% of total revenue. Precise growth figures remain undisclosed.
Q: Can you provide insights on the travel portal initiative and its potential influence?
A: Unidentified_4 (Director of Commercial): The travel portal will initially target the government sector, competing against established platforms like Balmer Lawrie.
The aim is to deliver superior technology and user experience, with future plans for expansion into the private sector and B2C markets. Due to existing infrastructure, costs are minimal, and the government sector offers substantial potential.
Source link: Finance.yahoo.com.
