ITI corrects Q4FY26 results, maintains FY26 profit
ITI Limited reported a net profit of ₹29,279.55 lakhs for FY26, correcting clerical errors in its Q4FY26 results. Revenue from operations declined to ₹2,18,372 lakhs from ₹3,61,642 lakhs in FY25. The turnaround was driven by exceptional items of ₹44,915.48 lakhs. The corrigendum revised quarterly expenses and cash flow figures but affirmed the annual profit.
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ITI Limited has issued a corrigendum to its audited financial results for the quarter and year ended March 31, 2026, correcting clerical errors in the fourth-quarter figures. The company clarified that the full-year profit remains unchanged at ₹29,283 lakhs despite the revisions.
The errors occurred while deriving balancing figures between the audited full-year figures and the published year-to-date unaudited figures up to the third quarter. The corrections primarily impacted expense classifications and cash flow statements, with no impact on the consolidated and standalone profit for the financial year.
Key Corrections
The company substituted several reported figures for the fourth quarter. Total expenses for the quarter were revised to ₹66,402 lakhs from the previously reported ₹72,457 lakhs. Profit before exceptional items and tax for the quarter was adjusted to a loss of ₹2,313 lakhs. Additionally, earnings per share for the quarter was revised to ₹4.53 from the earlier reported ₹3.90.
Cash Flow Adjustments
The corrigendum also amended the consolidated and standalone cash flow statements. Proceeds from the sale of fixed assets for the year were revised to ₹88,420 lakhs, down from the previously reported ₹91,431 lakhs. The increase in other current assets was adjusted to a decrease of ₹16,348 lakhs.
Auditor's Stance
Statutory auditors B.K. Ramadhyani & Co. LLP had previously issued a disclaimer of opinion on the standalone and consolidated financial results. The auditors cited the inability to obtain sufficient appropriate audit evidence due to inadequate internal financial controls and the company's failure to establish a sound information systems security policy. The corrigendum does not alter the auditor's disclaimer or the material uncertainties regarding the company's ability to continue as a going concern.
Financial Performance
Despite the quarterly adjustments, the annual financial performance remains as previously reported. Revenue from operations for the year stood at ₹2,18,372 lakhs, a decline from ₹3,61,642 lakhs in FY25. The turnaround to a net profit of ₹29,283 lakhs was driven by exceptional items amounting to ₹44,915.48 lakhs, primarily comprising write-offs of old receivables and inventories.
The following table summarizes the standalone financial performance for the year ended March 31, 2026:
| Metric: | FY26 (₹ in Lakhs) | FY25 (₹ in Lakhs) |
|---|---|---|
| Total Income: | 2,23,712.19 | 3,70,162 |
| Total Expenditure: | 2,39,348.12 | 3,96,981 |
| Net Profit/(Loss): | 29,279.55 | (23,314) |
| Earnings Per Share: | 3.04 | (2.43) |
Historical Stock Returns for ITI
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.43% | +0.13% | +0.98% | -1.07% | -9.37% | +149.11% |
How will the auditors' disclaimer of opinion regarding internal controls impact investor confidence and the company's ability to secure future contracts?
What specific measures is ITI Limited implementing to address the inadequate internal financial controls and information systems security policy cited by auditors?
With revenue declining significantly year-over-year, does the company have a sustainable strategy to generate operational profits beyond one-time exceptional items?
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