ITI Limited Q3 Results FY26: Net Loss Widens to ₹2,558 Lakh

ITI Limited announced that its Board of Directors formally approved the Unaudited Financial Results for the quarter and nine months ended December 31, 2025, during a meeting held on February 13, 2026. The approval followed a positive recommendation from the Audit Committee.

Consolidated Financial Performance

Quarter Ended December 31, 2025

Total Revenue: ₹52,696 Lakhs
Profit/(Loss) before exceptional items, prior period, and tax: (₹2,101 Lakhs)
Profit/(Loss) for the period (after all items): (₹2,533 Lakhs)
Basic/Diluted Earnings Per Share (EPS): (₹0.26) per share

Nine Months Ended December 31, 2025

Total Revenue: ₹1,55,607 Lakhs
Profit/(Loss) before exceptional items, prior period, and tax: (₹13,323 Lakhs)
Profit/(Loss) for the period (after all items): (₹14,327 Lakhs)
Basic/Diluted EPS: (₹1.49) per share

Standalone Financial Performance

Quarter Ended December 31, 2025

Total Revenue: ₹52,696 Lakhs
Profit/(Loss) before exceptional items, prior period, and tax: (₹2,100 Lakhs)
Profit/(Loss) for the period (after all items): (₹2,558 Lakhs)
Basic/Diluted EPS: (₹0.27) per share

Nine Months Ended December 31, 2025

Total Revenue: ₹1,55,607 Lakhs
Profit/(Loss) before exceptional items, prior period, and tax: (₹13,323 Lakhs)
Profit/(Loss) for the period (after all items): (₹14,312 Lakhs)
Basic/Diluted EPS: (₹1.49) per share

Auditor's Review: Disclaimer of Conclusion

The Independent Auditor's Review Report on the Consolidated results highlights significant concerns, leading to a Disclaimer of Conclusion. This disclaimer is primarily due to unquantified effects arising from several factors:

Continuing effect from the Consolidated Independent Audit Report dated June 13, 2025
Observations from the Secretarial Audit Report for FY 2024-25
Inability to obtain documentation for revenue recognition on multiple composite contracts under Ind AS 115
Pending assessment of costs related to contract amendments/revised purchase orders
Reliance on unit auditor reports for a total net loss of ₹16,900 Lakhs from the Palakkad, Raebareli, Naini, Mankapur, and Srinagar units for the nine-month period

Revival Plan and Going Concern Status

Management maintains that the going concern basis of accounting is appropriate, citing:

High-value order book of ₹1,85,464 Lakhs
Continued government support
Planned conversion of unbilled revenue

However, the company operates under a revival plan following its declaration as a sick company, having already received ₹3,02,535 Lakhs in financial assistance.

Key Unit-Level Qualifications

The review reports from branch auditors identified several issues impacting unit accounts:

1. Accounts Receivable

Overdue amounts totaling ₹26,594.26 Lakhs from Government of India/PSUs remain largely unprovided for against expected credit losses.

2. Inventory Valuation

Issues with inventory aging assessment and valuation not consistently adhering to the lower of cost or net realisable value (Ind AS 2) were noted across multiple units.

3. Contract Accounting

Specific long-term contracts (e.g., ASCON Phase IV) where revenue recognition over time is mandated by Ind AS 115 could not be fully substantiated by management data.

4. Statutory Compliance

Inadequate processes for identifying MSMED suppliers and verifying interest provisions for delayed payments were observed.

Exceptional Items

Significant exceptional charges recorded for the nine months ended December 31, 2025 include:

Interest on Gratuity & PL: ₹7,14,35,860
Transfer from GIA Capital: ₹2,74,25,247