ITI Q4 FY26 results: net profit ₹436.10 crore vs ₹4.38 crore loss, revenue down 40.0%

How did ITI perform in Q4 FY26?

ITI Limited reported consolidated revenue of ₹627.65 crore for Q4 FY26, down 40.0% from ₹1,046 crore in Q4 FY25 and up 22.0% from ₹514.65 crore in Q3 FY26. EBITDA was ₹26.81 crore, compared with an EBITDA loss of ₹28.18 crore a year earlier and ₹25.33 crore in the previous quarter. The EBITDA margin was 4.3%, up 7.0 percentage points from -2.7% and down 0.6 percentage points from 4.9%.

The quarter's profit before tax was ₹435.91 crore and net profit was ₹436.10 crore, against losses of ₹4.85 crore and ₹4.38 crore respectively in Q4 FY25. Against Q3 FY26, PAT moved from a net loss of ₹25.33 crore to a net profit of ₹436.10 crore. Basic EPS was ₹4.53, compared with -₹0.05 a year earlier and -₹0.26 in the previous quarter. The figures are consolidated; the company also reported standalone revenue of ₹627.65 crore and PAT of ₹435.91 crore.

What changed in ITI's costs and profit?

Against Q4 FY25, total expenses fell by ₹484.27 crore, or 42.2%, to ₹664.02 crore. Cost of materials was ₹51.43 crore, down ₹242.73 crore or 82.5%, employee cost was ₹29.91 crore, down ₹31.66 crore or 51.4%, and depreciation was ₹17.75 crore, down ₹11.17 crore or 38.6%. Finance costs were ₹45.43 crore, down ₹0.06 crore or 0.1%, while other expenses were ₹94.49 crore, up ₹99.01 crore.

Other income fell by ₹22.09 crore, or 62.5%, from ₹35.33 crore in Q4 FY25 to ₹13.24 crore in Q4 FY26. The quarter included a ₹459.04 crore exceptional gain, against an exceptional gain of ₹62.41 crore in the year-ago quarter; the filing states that the full-year exceptional item included a ₹83,219.21 lakh profit on the sale of assets and a ₹30,167.57 lakh write-off of long-outstanding debtors. There was no tax expense in either quarter.

How did ITI do in FY26 as a whole?

For FY26, ITI reported consolidated revenue of ₹2,183.72 crore, down 39.6% from ₹3,616.42 crore in FY25. Total income was ₹2,237.12 crore, down 39.6% from ₹3,701.62 crore, while profit before tax was ₹292.79 crore compared with a loss of ₹233.15 crore in FY25. Net profit was ₹292.83 crore, compared with a net loss of ₹214.89 crore.

Basic EPS for FY26 was ₹3.04, compared with -₹2.24 in FY25. The auditor's report states that FY26 net profit after tax was ₹29,283 lakhs and that current liabilities at year-end exceeded current assets. Management stated that the going-concern basis was appropriate, citing the order book, expected conversion of unbilled revenue, recovery efforts, sanctioned working-capital borrowing, Government of India support and planned land monetisation.

What do the balance sheet and cash flow show?

At 31 March 2026, consolidated total assets were ₹9,346.53 crore, lower than ₹10,429.2 crore at 30 September 2025. Total equity was ₹1,905.63 crore against ₹1,504.43 crore, while borrowings fell to ₹764.99 crore from ₹1,310.89 crore and cash rose to ₹24.4 crore from ₹7.67 crore. Inventories were ₹205.71 crore, trade receivables ₹2,905.68 crore and trade payables ₹2,890.74 crore.

FY26 operating cash flow was -₹53.53 crore, compared with -₹135.31 crore in FY25. Investing cash flow was ₹841.88 crore against ₹651.03 crore, financing cash flow was -₹912.72 crore against -₹485.33 crore, and capital expenditure was ₹4.28 crore against ₹15.87 crore.

How has ITI done over the last 8 quarters?

Revenue moved from a peak of ₹1,045.7 crore in Q4 FY25 to a low of ₹498.01 crore in Q1 FY26, then rose through the following quarters to ₹627.65 crore in Q4 FY26. PAT remained negative through Q3 FY26 before reaching ₹436.1 crore in the latest quarter.

The EBITDA margin improved from a low of -2.7% in Q4 FY25 to 4.9% in Q3 FY26, before easing to 4.3% in Q4 FY26. Revenue, profit and margin therefore moved higher from Q3 to Q4, although revenue remained below the Q4 FY25 level.

What else did the company announce?

The board approved the audited consolidated and standalone financial results for the quarter and year ended 31 March 2026, along with the statutory auditors’ reports and the impact of audit qualifications. A later corrigendum said some clerical and typographical errors had affected certain Q4 expense lines and their impact on profit, but said there was no change or impact on consolidated or standalone profit for FY26.

The company also filed for the appointment of C V Ramana Babu as Chief Financial Officer and Key Managerial Personnel with effect from 28 May 2026. Separately, the Ministry of Communications extended the additional charge of the Director (HR) post held by Rajesh Rai for a further period of 3 months from 28 May 2026, or until a regular incumbent was appointed or further orders, whichever was earliest.

What did the auditors point out?

The statutory auditors issued a Disclaimer of Opinion on ITI's consolidated financial results for the year ended 31 March 2026. They said they were unable to obtain sufficient appropriate audit evidence to form an opinion because of the potential interaction of multiple or undetected misstatements and the possible individual and cumulative effect of those matters.

The auditors cited the company's inadequate internal financial controls, including the non-establishment of a sound information system, and said prior-year assets put to use without capitalisation had not been comprehensively identified. They also reported that write-off adjustments of identified old receivables and inventories were made in FY26, but the correctness and consequential impact of the adjustments could not be determined. The report stated that these matters formed the basis for the disclaimer.

The auditors also stated that there was a material uncertainty regarding the company's ability to continue as a going concern, because current liabilities exceeded current assets and the qualification matters could widen the gap. Management was of the opinion that the going-concern basis remained appropriate; the cited order book was ₹18,63,699 lakhs and expected conversion of unbilled revenue was ₹2,24,111 lakhs.

How did ITI shares react?

ITI's shares were little changed in the first 5 minutes after the filing, at 0.1%, then moved down 1.1% after 15 minutes and 0.7% after 30 minutes. On the reaction day, the stock fell 1.3% from the previous close of ₹301.55. By the next day's close it was down 2.3% from that pre-results close, and the five-day move was -0.0%.

The industry's median reaction-day move was -1.5%, against ITI's -1.3%; by the next day, the industry median was 1.3% while ITI was down 2.3%, and over five days the industry median was 3.9% while ITI was at -0.0%. Earlier results-day moves included -1.8% on 13 February 2026, -1.6% on 13 November 2025, -3.4% on 13 August 2025 and 10.0% on 27 May 2025.