ITI Limited announced its unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2025. The Board of Directors approved these results on February 13, 2026, following recommendations from the Audit Committee.

Financial Performance Overview

The company's consolidated financial performance showed mixed results for Q3 FY26 compared to the previous year:

For the nine-month period ended December 31, 2025, the company reported:

Expense Analysis

Total expenses for Q3 FY26 were ₹54,796 lakhs compared to ₹1,12,182 lakhs in Q3 FY25. Key expense components included:

• Cost of Materials Consumed & Services: ₹(60,541) lakhs
• Purchase of stock-in-trade: ₹1,03,313 lakhs
• Employee benefits expense: ₹3,879 lakhs
• Finance costs: ₹4,764 lakhs
• Depreciation and amortisation: ₹1,101 lakhs

Exceptional Items and Other Developments

The company recorded exceptional items of ₹458 lakhs for Q3 FY26, consisting of interest on Gratuity & Privilege Leave (₹7,14,35,860) and transfer from GIA Capital (₹2,74,25,247), totaling ₹9,88,61,107.

Major Projects and Order Book

ITI Limited continues execution of the Army Static Switched Communication Network (ASCON) Phase IV project worth ₹8,280.36 crore, contracted with the Ministry of Defence on October 1, 2020. The project timeline has been revised to December 2026. The company maintains an order book of ₹1,854,644 lakhs under execution with unbilled revenue of ₹214,000 lakhs expected for conversion within the next 12 months.

Going Concern and Revival Plan

The company operates under a revival plan approved by the Cabinet Committee on Economic Affairs (CCEA) involving financial assistance of ₹4,15,679 lakhs, of which ₹3,02,535 lakhs has been received. Management believes the going concern basis remains appropriate given government support, high-value order book execution, and adequate working capital borrowing sanctions.

Earnings Per Share

Basic and diluted earnings per share for Q3 FY26 stood at ₹(0.26) compared to ₹(0.51) in Q3 FY25. For the nine-month period, EPS was ₹(1.49) versus ₹(2.19) in the previous year. The paid-up equity share capital remained at ₹96,285 lakhs with face value of ₹10 per share.

ITI Limited has received credit rating assignment from Infomerics Valuation and Ratings Ltd for its banking facilities worth Rs 4221.39 crore. The company informed stock exchanges about this development through a regulatory filing dated February 5, 2026, under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Credit Rating Details

Infomerics Valuation and Ratings Ltd assigned the following credit ratings to ITI Limited's banking facilities:

The rating assignment was communicated through Infomerics' letter dated February 4, 2026, addressed to Rajeev Srivastava, Director Finance/CFO of ITI Limited. The rating committee's decision was based on a mandate contract dated September 4, 2025.

Consolidation Approach

For arriving at the ratings, Infomerics considered the consolidated financial profiles of ITI Limited and India Satcom Limited (ISL). The consolidation approach included:

Intercompany transactions were eliminated during the consolidation process to ensure accurate financial assessment.

Banking Facilities Breakdown

The rated facilities comprise both fund-based and non-fund based working capital limits across multiple banks:

Long-term Fund-based Working Capital Limits:

• State Bank of India: Rs 583.82 crore (CC)
• Bank of Baroda: Rs 440.16 crore (CC)
• Indian Bank: Rs 97.11 crore (CC)
• Proposed facilities: Rs 119.72 crore (CC)
• Other banks including Union Bank of India, Canara Bank, Central Bank of India, and Punjab National Bank

Short-term Non-Fund based Working Capital Limits:

• State Bank of India: Rs 890.00 crore (BG) and Rs 444.00 crore (Letter of Credit)
• Bank of Baroda: Rs 593.94 crore (BG) and Rs 313.00 crore (Guarantee)
• Proposed BG+LC: Rs 360.85 crore
• Various other banking arrangements across multiple lenders

Rating Validity and Monitoring

The assigned rating is valid for one year from the committee date until February 1, 2027. Infomerics will conduct formal surveillance and review of the rating within 12 months from the initial rating date. The company has undertaken to comply with various monitoring requirements, including providing monthly No Default Statements and quarterly performance results within six weeks from each calendar quarter close.

Rating Scale Context

According to Infomerics rating scale, IVR BBB- rating indicates that securities are considered to offer moderate degree of safety regarding timely servicing of financial obligations, carrying moderate credit risk. The IVR A3 short-term rating signifies moderate degree of safety for timely payment of financial obligations, though with higher credit risk compared to higher-rated categories.