New Delhi: ITI Limited announced its unaudited financial results for Q3 and nine months ended December 31, 2025, reporting significant losses on both standalone and consolidated bases. The Board of Directors approved the results following a recommendation from the Audit Committee.
The company continues to operate under a revival plan with government support, while auditors have issued a Disclaimer of Conclusion on the consolidated results due to multiple revenue recognition and unit-level accounting issues.
Q3 FY26 Financial Highlights
Standalone Performance
- Total Revenue: ₹52,696 Lakh
- Loss for the Quarter: ₹2,558 Lakh
- Basic/Diluted EPS: ₹0.27 loss per share
Nine-Month Performance
- Total Revenue: ₹1,55,607 Lakh
- Loss for the Period: ₹14,312 Lakh
- Basic/Diluted EPS: ₹1.49 loss per share
Standalone results reflect ongoing operational challenges across multiple units.
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Consolidated Results and Auditor Disclaimer
- Total Revenue (Q3): ₹52,696 Lakh
- Loss for the Quarter: ₹2,533 Lakh
- EPS: ₹0.26 loss per share
- Nine-Month Loss: ₹14,327 Lakh
The Independent Auditor’s Review Report highlighted several issues, resulting in a Disclaimer of Conclusion on consolidated results:
- Inability to verify revenue recognition on multiple composite contracts under Ind AS 115
- Pending assessment of costs related to contract amendments and revised purchase orders
- Unit-level net losses of ₹16,900 Lakh across Palakkad, Raebareli, Naini, Mankapur, and Srinagar
- Observations from prior Consolidated Independent Audit Report and Secretarial Audit FY24-25
Key Unit-Level Concerns
Auditor reports flagged several operational and accounting challenges:
- Accounts Receivable: Overdue government/PSU payments of ₹26,594 Lakh largely unprovided for
- Inventory Valuation: Aging and lower-of-cost-or-net-realizable-value discrepancies under Ind AS 2
- Contract Accounting: ASCON Phase IV and other long-term projects lacked sufficient documentation for revenue recognition
- Statutory Compliance: Weak MSMED supplier identification and delayed payment interest provisions
Exceptional Items
Significant charges impacting results for the nine months ended December 31, 2025 include:
- Interest on Gratuity & PL: ₹7,14,35,860
- Transfer from GIA Capital: ₹2,74,25,247
These items contributed to the overall net losses reported by the company.
Going Concern and Revival Plan
Management maintains the going concern basis is appropriate, citing:
- A high-value order book of ₹1,85,464 Lakh
- Continued government support and financial assistance of ₹3,02,535 Lakh
- Planned conversion of unbilled revenue
The company continues to implement its revival plan to address operational inefficiencies and improve financial stability.
About ITI Limited
ITI Limited is a central Public Sector Undertaking (PSU) engaged in telecommunications and electronics manufacturing. Established as India’s pioneer in telecom equipment production, ITI has contributed to national telecom infrastructure development and continues to support government initiatives in digital connectivity, despite ongoing financial and operational challenges.
