ITI Ltd logo

ITI Ltd

ITI NSE

ITI Limited is engaged in manufacturing, trading and servicing of telecommunication equipment, and rendering other associated and ancillary services. The Company focuses on offering telephone communication services. [1]

AI Verdict: SELL Confidence: 7%

ITI Ltd trades at a PE of 102.3x and 15.72x book value with consistently negative ROE of -18% over 3 years, no dividend yield, and a TTM sales decline of -40%. Despite debt reduction and strong stock CAGR of 42% over 3 years, fundamentals do not support the current valuation.

Key Fundamentals

SmallcapEquipment & AccessoriesTelecom
Market Cap
₹29,514 Cr
Volatility
Moderate
P/E Ratio
99.21
EBITDA
₹43.62 Cr
Debt to Equity
0.96
Book Value
₹19.79
52W High
₹372.85
52W Low
₹237

Technical Indicators

Key Insights

Strengths

1
  • Company has reduced debt.

Weaknesses

6
  • Stock is trading at 16.0 times its book value
  • Company has low interest coverage ratio.
  • Company has a low return on equity of -18.3% over last 3 years.
  • Earnings include an other income of Rs.503 Cr.
  • Company has high debtors of 486 days.
  • Company's cost of borrowing seems high

Growth Rate

Revenue Growth
-41.01% ↘
Net Income Growth
-236.26% ↘
Cash Flow Change
-113.89% ↘
ROE
-58.50% ↗
ROCE
-103.24% ↘
EBITDA Margin (Avg.)
138.24% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
SELL
Risk high

ITI Ltd trades at a PE of 102.3x and 15.72x book value with consistently negative ROE of -18% over 3 years, no dividend yield, and a TTM sales decline of -40%. Despite debt reduction and strong stock CAGR of 42% over 3 years, fundamentals do not support the current valuation.

Bull Case 7
  • Stock has delivered a 3-year CAGR of 42%, significantly outperforming broader markets
  • Company has reduced debt, improving balance sheet health and reducing financial risk
  • 10-year compounded sales growth of 6% shows long-term revenue trajectory is positive
  • Compounded profit growth of 42% on TTM basis indicates recent earnings improvement
  • Market cap of Rs.30,100 Cr provides scale and potential for government contract wins in telecom sector
  • 3-year compounded profit growth of 16% shows gradual improvement in profitability trend
  • As a PSU in the telecom/defence sector, ITI benefits from government's Make in India and Atmanirbhar Bharat initiatives
Bear Case 8
  • PE ratio of 102.3x is extremely expensive relative to earnings, indicating significant overvaluation
  • 3-year average ROE of -18% indicates the company is destroying shareholder value consistently
  • TTM sales declined by -40%, signalling severe revenue contraction and execution challenges
  • Stock trades at 15.72x book value despite negative returns on equity, an unsustainable premium
  • Debtor days of 486 indicate severe working capital stress and poor collection efficiency
  • Zero dividend yield with no history of returning capital to shareholders
  • Earnings include other income of Rs.503 Cr, masking weakness in core operating performance
  • Zero analyst coverage with no buy, hold, or sell ratings suggests institutional disinterest

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 3
  • Revenue declined 40% in FY26 Jun 3

    Revenue from operations fell to ₹2,18,372 lakhs in FY26 from ₹3,61,642 lakhs in FY25, a roughly 40% decline year-on-year.

  • Profit driven by exceptional items Jun 3

    FY26 net profit of ₹29,279.55 lakhs was driven by exceptional items of ₹44,915.48 lakhs, meaning core operations remained loss-making without one-time gains.

  • Q4FY26 results needed correction Jun 3

    ITI issued a corrigendum to correct clerical errors in its Q4FY26 results, revising quarterly expenses and cash flow figures, raising governance concerns.

Positives 2
  • Q4FY26 turnaround to profit Jun 16

    ITI reported Q4FY26 profit after tax of ₹37,514 crore versus a loss of ₹2,533 crore in Q3FY26. Total income from operations rose to ₹62,765 crore in the quarter.

  • FY26 annual net profit confirmed Jun 3

    Despite revenue decline, ITI confirmed annual net profit of ₹29,279.55 lakhs for FY26, marking a turnaround from prior losses.

Neutral 4
  • HR Director charge extended Jun 16

    ACC approved extension of Shri Rajesh Rai's additional charge as Director (HR) for one year effective May 28, 2026. An earlier 3-month extension was also approved on May 28.

  • 19.65 lakh shares listed Jun 11

    BSE and NSE approved listing of 19,65,029 equity shares issued to promoters at a premium of ₹290.25 per share.

  • Promoter shares unencumbered in FY26 Jun 9

    The President of India, promoter of ITI, declared no encumbrance on 86,44,85,747 equity shares during FY26, signalling no pledge risk.

  • New CFO appointed May 29

    Shri C V Ramana Babu appointed as CFO and Key Managerial Personnel effective May 28, 2026, previously serving as Director Marketing with additional charge of Director Finance.

TL;DR: ITI reported a headline profit turnaround in Q4FY26 and full-year FY26, but the profit is largely underpinned by exceptional items rather than operating performance, while revenue declined ~40% YoY. Governance saw some churn with a corrigendum on results and multiple leadership role extensions. The stock's fundamental trajectory depends on whether revenue recovers and core profitability improves without reliance on one-off gains.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
775
157
246
259
601
520
1,016
1,035
1,046
498
543
515
628
Expenses
781
206
299
302
775
533
1,025
1,045
1,074
505
545
489
601
Operating Profit
-6
-49
-53
-43
-174
-13
-9
-11
-28
-7
-1
25
27
OPM %
-1%
-31%
-21%
-17%
-29%
-2%
-1%
-1%
-3%
-1%
0%
5%
4%
Other Income
10
13
10
13
9
-11
14
20
98
9
13
8
472
Interest
63
55
69
57
60
53
62
64
45
51
53
48
45
Depreciation
13
12
13
14
14
14
14
13
29
15
13
11
18
PBT
-73
-103
-126
-102
-239
-91
-70
-67
-5
-63
-54
-26
436
Tax %
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Net Profit
-73
-103
-126
-102
-239
-91
-70
-67
-5
-63
-54
-26
436
EPS in Rs
-0.77
-1.07
-1.31
-1.06
-2.49
-0.95
-0.73
-0.7
-0.05
-0.66
-0.56
-0.27
4.53
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
574
1,252
1,528
1,475
1,668
2,059
2,362
1,861
1,395
1,264
3,616
2,184
Expenses
785
1,424
1,633
1,394
1,769
1,913
2,311
1,752
1,549
1,582
3,676
2,140
Operating Profit
-210
-172
-105
81
-100
146
51
109
-154
-318
-60
44
OPM %
-37%
-14%
-7%
6%
-6%
7%
2%
6%
-11%
-25%
-2%
2%
Other Income
86
594
541
327
336
184
161
255
53
43
120
503
Interest
157
157
153
153
106
141
160
192
210
241
224
197
Depreciation
15
13
17
25
37
42
42
51
50
53
69
56
PBT
-297
251
266
231
93
147
11
120
-360
-569
-233
293
Tax %
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Net Profit
-297
251
266
231
93
147
11
120
-360
-569
-233
293
EPS in Rs
-10.32
8.72
4.76
3.03
1.03
1.59
0.12
1.29
-3.79
-5.92
-2.43
3.04
Div. Payout %
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
288
288
560
760
897
925
934
934
950
961
961
963
Reserves
125
389
499
868
897
1,357
1,475
1,640
1,390
789
611
889
Borrowings
1,521
1,439
1,524
1,226
1,259
1,216
1,465
1,613
1,877
1,801
1,481
765
Other Liabilities
3,441
3,752
2,965
4,189
3,943
4,225
5,043
5,394
5,280
6,054
7,340
6,676
Total Liabilities
5,374
5,868
5,548
7,044
6,995
7,723
8,917
9,580
9,497
9,605
10,392
9,293
Fixed Assets
2,423
2,458
2,506
2,620
2,695
2,693
2,702
2,729
2,752
2,732
2,710
2,370
CWIP
33
92
102
149
165
189
169
150
139
142
19
16
Investments
0
0
0
0
0
0
0
0
0
0
0
0
Other Assets
2,917
3,318
2,939
4,274
4,135
4,841
6,046
6,701
6,605
6,730
7,664
6,907
Total Assets
5,374
5,868
5,548
7,044
6,995
7,723
8,917
9,580
9,497
9,605
10,392
9,293
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-149
-319
-347
-109
22
-197
96
-436
-294
974
-154
-135
Investing
-10
-104
-75
-96
-124
-75
-306
177
46
-543
669
924
Financing
398
273
468
364
-19
285
198
247
241
-322
-485
-913
Net Cash Flow
239
-150
45
158
-121
13
-12
-12
-6
109
30
-124
Free Cash Flow
-161
-425
-424
-207
-106
-259
92
-493
-338
937
44
775
CFO/OP
71
185
332
-134
-22
-135
187
-401
191
-306
256
-132
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
1,170
500
525
762
581
490
394
536
635
709
403
486
Inventory Days
247
75
110
126
114
167
196
118
261
215
41
41
Days Payable
3,637
1,021
1,228
1,482
1,109
1,500
1,578
855
1,242
1,286
492
574
Cash Conversion Cycle
-2,220
-447
-594
-594
-414
-844
-988
-202
-345
-361
-48
-47
Working Capital Days
-985
-608
-283
-230
-145
-117
-131
-36
-103
-488
-145
-142
ROCE %
-8%
15%
18%
14%
7%
9%
5%
8%
-4%
-8%
-1%
1%

Shareholding Pattern

As of Mar 2026
Promoters 90.02%
Government 7.88%
Public 1.90%
Others 0.13%
DIIs 0.07%
FIIs 0.01%
Total 100.01%
  Feb 2021Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022May 2022Jun 2022Sep 2022Dec 2022Mar 2023May 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025May 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
90.09%
90.09%
90.09%
90.09%
90.09%
90.00%
90.00%
90.09%
90.09%
90.17%
90.17%
90.28%
90.28%
90.28%
90.28%
90.00%
90.00%
90.00%
90.00%
90.00%
90.00%
90.02%
90.02%
90.02%
90.02%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.11%
0.06%
0.04%
0.07%
0.00%
0.00%
0.01%
0.00%
0.00%
0.01%
DIIs
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.02%
0.02%
0.02%
0.01%
0.02%
0.02%
0.03%
0.03%
0.04%
0.04%
0.05%
0.05%
0.05%
0.05%
0.06%
0.07%
Government
7.74%
7.74%
7.74%
7.74%
7.74%
7.83%
7.83%
7.76%
7.76%
7.70%
7.70%
7.61%
7.61%
7.61%
7.61%
7.90%
7.90%
7.90%
7.90%
7.90%
7.90%
7.88%
7.88%
7.88%
7.88%
Public
2.06%
2.06%
2.03%
2.05%
2.03%
1.99%
2.00%
1.90%
1.89%
1.89%
1.89%
1.87%
1.85%
1.77%
1.87%
1.85%
1.91%
1.94%
1.81%
1.98%
1.97%
1.95%
1.88%
1.87%
1.90%
Others
0.10%
0.10%
0.13%
0.11%
0.12%
0.16%
0.16%
0.24%
0.24%
0.22%
0.23%
0.22%
0.24%
0.31%
0.22%
0.11%
0.10%
0.08%
0.19%
0.07%
0.09%
0.08%
0.16%
0.17%
0.13%
No. of Shareholders
0
75,664
75,986
77,658
76,157
77,413
77,915
77,689
78,017
77,065
75,886
75,559
74,754
80,144
97,979
1,00,321
1,07,468
1,05,144
1,60,154
2,05,507
1,96,411
1,94,122
1,78,632
1,66,358
1,62,249

Documents

Frequently Asked Questions about ITI Ltd

What does ITI Ltd do?
ITI Limited is engaged in manufacturing, trading and servicing of telecommunication equipment, and rendering other associated and ancillary services. The Company focuses on offering telephone communication services. [1]
Where is ITI Ltd (ITI) listed?
ITI Ltd is listed on the Indian stock exchanges. It is listed on NSE: ITI and BSE: 523610. You can view its live share price, financials, and ratios on Tapetide.
Which sector does ITI Ltd belong to?
ITI Ltd operates in the Telecommunication sector within the Telecom - Equipment & Accessories industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of ITI Ltd?
ITI Ltd has a market capitalisation of approximately ₹29513.64 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of ITI Ltd?
The Price-to-Earnings (PE) ratio of ITI Ltd is 99.21. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of ITI Ltd?
Over the past 52 weeks, ITI Ltd has traded between a low of ₹237 and a high of ₹372.85. This range helps investors understand the stock's price volatility and recent trading levels.
How can I research ITI Ltd on Tapetide?
On Tapetide, you can view ITI Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

ITI Limited is engaged in manufacturing, trading and servicing of telecommunication equipment, and rendering other associated and ancillary services. The Company focuses on offering telephone communication services. [1]

Website itiltd.in
CEO Mr. Rajesh Rai
Employees 763
Listed 1999-08-11
Face Value ₹ 10
Issued Size 96,08,86,938

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