This article first appeared on GuruFocus.
Release Date: November 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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MSTC Ltd (BOM:542597) reported a sustained revenue growth trend both year-on-year and sequentially, driven primarily by its e-commerce segment.
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The company has been selected by the Director General of Foreign Trade to establish an online platform for the allocation of tariff rate quotas for gold bullion import, indicating trust in its platform’s robustness.
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MSTC Ltd (BOM:542597) has signed a 30-year agreement with Shyama Prasad Mukherjee Port Kolkata for providing e-commerce services, highlighting long-term business opportunities.
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The company is developing a platform for electronic trading of EPR certificates, which is expected to be a game-changer in the future.
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MSTC Ltd (BOM:542597) has been involved in significant government projects, such as e-auction of sand mining blocks and liquor shop licenses, showcasing its strong presence in the public sector.
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The vehicle scrapping business is facing challenges due to the lack of a comprehensive institutional framework and incentives, leading to a slow process.
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The joint venture with Mahindra Ato, MMRPL, has not yet become profitable, although there is sequential improvement.
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The marketing vertical has significantly tapered down and is facing closure, indicating a potential loss of revenue stream.
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The EPR trading platform, while promising, is not expected to contribute significantly to the top-line in the next 2-3 years.
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The company’s revenue from the Kolkata Port Trust agreement is minimal as it is based on a small percentage of the total lease value, which is spread over 30 years.
Q: Can you provide insights into the vehicle scrapping business and the potential value from scrapping government vehicles? A: Unidentified_4 (Director of Commercial): The process of scrapping government vehicles is slow due to the need for institutional frameworks and incentives. Many vehicles lack digital records, and incentives are necessary to encourage scrapping. The process is fragmented across states, and while 10 lakh vehicles are expected to be scrapped, the timeline is uncertain.
Q: What is the potential of the EPR trading platform, and are there any government regulations to boost its usage? A: Unidentified_4 (Director of Commercial): The EPR trading platform is a new initiative with policy guidelines for five waste categories, with more to be added. The platform aims to regulate trading, which is currently offline. It is expected to be a game-changer for MSTC, with significant revenue potential in the long term, though initial costs will be high.
