ITI Limited , a government-owned telecommunications equipment manufacturer, has received a significant boost to its credit profile. Acuite Research and Ratings Ltd has upgraded the company's credit ratings, signaling an improvement in its financial standing and operational performance.

Credit Rating Upgrade Details

The rating agency has revised ITI Limited's ratings as follows:

This upgrade covers a substantial portion of ITI Limited's bank facilities, totaling Rs 4,851.69 crore. The improved ratings apply to various financial instruments, including:

• Cash Credit
• Letters of Credit
• Bank Guarantees

Key Lenders

The upgraded ratings encompass facilities from several major banks, including:

• Bank of Baroda
• State Bank of India
• Canara Bank

Financial Performance Insights

An analysis of ITI Limited's recent financial data reveals some interesting trends:

The company has shown significant growth in its asset base over the past five years, with total assets increasing by 16.71%. However, the rise in current liabilities (41.75% over five years) outpaces the growth in current assets (31.57%), which may indicate some pressure on working capital management.

Implications of the Rating Upgrade

The credit rating upgrade from Acuite Research and Ratings Ltd is a positive development for ITI Limited. It suggests:

1. Improved financial stability and creditworthiness
2. Potential for better terms on future borrowings
3. Enhanced confidence among stakeholders, including investors and lenders

However, the decrease in shareholders' capital (-33.53% over five years) warrants attention and may require strategic measures to strengthen the company's equity position.

Conclusion

ITI Limited's credit rating upgrade reflects an improvement in its overall financial profile. While the company shows robust growth in assets, managing the balance between liabilities and equity will be crucial for sustaining this positive momentum. As a government-owned entity in the strategic telecommunications sector, ITI Limited's financial health and performance remain significant for both investors and policymakers alike.

ITI Limited , a state-owned telecommunications technology company, has reported a narrowed net loss for the quarter ended September 30, 2025, despite a significant drop in revenue. The company continues to operate under a government-approved revival plan.

Financial Performance

ITI Limited posted a net loss of Rs 5,436.00 lakhs for the quarter ended September 30, 2025, compared to a loss of Rs 7,033.00 lakhs in the previous quarter. This represents a 22.7% reduction in net loss. However, the company's revenue from operations saw a substantial decline, dropping to Rs 4,340.00 lakhs from Rs 49,801.00 lakhs in the previous quarter.

Revenue Decline and Order Book

The sharp decrease in revenue is a cause for concern, as it represents a 91.3% decline quarter-over-quarter. Despite this, ITI Limited maintains a substantial order book worth Rs 1,87,261.00 lakhs, which may provide some stability for future operations.

Government Revival Plan

ITI Limited continues to operate under a government-approved revival plan. The plan, sanctioned by the Cabinet Committee on Economic Affairs (CCEA), involves a total financial assistance of Rs 4,15,679.00 lakhs. As of the reporting date, the company has received Rs 3,02,535.00 lakhs of this assistance.

Key Projects and Challenges

The company is currently engaged in the execution of the Army Static Switched Communication Network (ASCON) Phase IV project, valued at Rs 8,280.36 crore. This project includes:

• Installation, commissioning, and maintenance of telecom equipment
• Network Management System (NMS)
• Mobile nodes
• Civil works for providing complete infrastructure at various sites
• Roll-out of the optical fiber network

However, the project has faced delays, primarily due to Country-of-Origin issues, which have now been resolved. The project timeline has been revised to December 2025.

Going Concern and Future Outlook

Despite the current losses, the management maintains that the going concern basis of accounting is appropriate. This view is supported by:

1. The high value of the existing order book (Rs 1,87,261.00 lakhs)
2. Expected conversion of unbilled revenue (Rs 203,480.00 lakhs) into billed revenue within the next 12 months
3. Adequate working capital borrowing sanctions from consortium banks
4. Continued support from the Government of India

Conclusion

While ITI Limited has managed to narrow its quarterly loss, the significant decline in revenue presents a major challenge. The company's ability to execute its substantial order book efficiently and convert unbilled revenue into cash flow will be crucial for its financial recovery and long-term sustainability.