Mumbai: ITI Limited has informed the stock exchanges that India Ratings and Research (Ind-Ra) has affirmed the company’s bank loan facilities rating at IND BB+/Positive and IND A4+. The rating agency has also revised the outlook from Stable to Positive, indicating an improved assessment of the company’s credit profile.
The rating was assigned on 3 August 2026 and communicated to ITI Limited on the same day. The company made the disclosure on 4 August 2026 under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Details of ITI Limited’s Credit Rating by India Ratings
The key details of the rating assigned by India Ratings and Research are:
The key details of the rating assigned by India Ratings and Research are:
- Rating Agency: India Ratings and Research (Ind-Ra)
- Instrument: Bank Loan Facilities
- Rating Assigned: IND BB+/Positive / IND A4+
- Rating Action: Rating affirmed, outlook revised to Positive
- Size of Issue: ₹42,213.90 million (reduced from ₹48,516.90 million)
- Communication Date: 3 August 2026
The positive outlook reflects India Ratings’ expectation of further improvement in ITI Limited’s financial performance and credit profile.
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Outlook Revision Driven by Improved Credit Profile
According to India Ratings, the revision of ITI Limited’s outlook to Positive is supported by expectations of strengthening credit metrics.
The rating agency highlighted that the company’s credit profile is likely to improve due to:
- Improvement in profitability margins after a moderate operational recovery in FY26
- Ongoing monetisation of non-core land assets
- Reduction in overall debt burden
- Improvement in liquidity position
- Strengthening of the balance sheet through debt reduction measures
The proposed monetisation of additional land parcels is expected to generate funds that will further support debt repayment and improve financial stability.
Government of India Support Continues to Support ITI Ratings
India Ratings stated that ITI Limited continues to benefit from its strong strategic relationship with the Government of India.
The government linkage provides expectations of continued institutional and financial support, if required.
The rating agency also noted ITI’s more than seven-decade presence in the telecommunications sector and its experience in executing critical projects as key factors supporting the company’s operational credibility.
Key Strengths Highlighted by India Ratings
India Ratings identified several factors supporting ITI Limited’s rating, including:
- Established track record in executing important telecommunications and technology projects
- Expected revenue growth supported by a strong order book
- Improvement in profitability levels
- Strong Government of India linkages
- Improving credit profile due to significant debt reduction efforts
The company’s long-standing industry presence and project execution capabilities remain important strengths.
Challenges and Risks Highlighted in the Rating Report
While recognising ITI Limited’s improving position, India Ratings also highlighted certain risks, including:
- High customer concentration risk
- Elevated receivables
- Weak corporate governance concerns
- Competitive pressure in the telecommunications sector
- Technological changes and regulatory risks
These factors continue to remain areas requiring monitoring for sustained improvement in the company’s credit profile.
ITI Limited Financial Performance in FY26
During FY26, ITI Limited reported:
- Revenue: ₹21,837 million
- EBITDA: ₹436 million
- EBITDA Margin: 2.0%
- Interest Coverage Ratio: 0.45x
- Net Leverage: 17.0x
The company’s financial performance showed signs of operational recovery, which contributed to the positive outlook revision by India Ratings.
About ITI Limited
ITI Limited (Indian Telephone Industries Limited) is a Government of India enterprise under the Ministry of Communications. Established in 1948, the company is one of India’s oldest public sector telecommunications companies. ITI Limited provides solutions in telecom, defence, smart cities, information technology and network infrastructure sectors, and has played a key role in executing several strategic government projects.
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