ITI's Q2 FY 2025-26 Quarterly Results

Result Summary

• ITI Ltd reported a 9.2% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 45.8%.
• Its expenses for the quarter were up by 7.0% QoQ and down 44.5% YoY.
• The net profit decreased 14.5% QoQ and decreased 22.7% YoY.
• The earnings per share (EPS) of ITI Ltd declined at 0.57 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

ITI Ltd, or Indian Telephone Industries Limited, is a public sector company in India that operates primarily in the telecommunications industry. It provides a range of products and services including manufacturing telecommunications equipment, networking products, and offering network solutions. The company has historically been involved in the production of telephone exchanges and other related communication equipment. Over the years, ITI Ltd has diversified its offerings to include newer technologies and solutions in the areas of IT and IoT. The company plays a significant role in supporting the government's initiatives in telecom and connectivity. Recent developments in the industry, such as advancements in 5G technology and increased demand for digital infrastructure, may have an impact on the company’s operations, although specific recent developments for ITI Ltd are not detailed in the provided data.

Revenue

In the second quarter of the fiscal year 2026 (Q2FY26), ITI Ltd reported a total income of ₹558.22 crores. This represents a quarter-over-quarter (QoQ) increase of 9.2% from ₹511.05 crores reported in the first quarter of the same fiscal year (Q1FY26). However, when compared year-over-year (YoY) with the second quarter of the previous fiscal year (Q2FY25), where the total income was ₹1030.87 crores, there is a significant decrease of 45.8%. This substantial YoY decline indicates a noteworthy change in the company's revenue-generating capabilities or market conditions over the past year.

Profitability

The company recorded a loss before tax of ₹54.24 crores in Q2FY26. This marks an improvement from the previous quarter (Q1FY26), where the loss before tax was ₹63.32 crores, showing a QoQ reduction in losses by 14.3%. Compared to Q2FY25, where the loss before tax was ₹70.11 crores, there is a YoY reduction in losses by 22.6%. The profit after tax aligns closely with the profit before tax figures for each period, as the tax expense is reported as zero. The earnings per share (EPS) stood at -₹0.57 in Q2FY26, improving from -₹0.66 in Q1FY26, reflecting a 13.6% QoQ improvement. Compared to Q2FY25, where the EPS was -₹0.73, there is a YoY improvement of 21.9%.

Operating Metrics

The total expenses for ITI Ltd in Q2FY26 were ₹610.75 crores, which is a 7.0% increase from the ₹570.76 crores recorded in Q1FY26. Despite this increase, the expenses have decreased significantly by 44.5% when compared to Q2FY25, where the total expenses were ₹1100.07 crores. This reduction in expenses alongside a decrease in total income suggests a potential restructuring or operational optimization within the company over the past year. However, the company remains in a loss-making position, as the total expenses continue to exceed the total income. The absence of any tax expense in the reported periods suggests that the company either did not generate taxable income or has utilized tax credits or losses carried forward.