ITI shares surge 9% as Q4 loss narrows sharply, revenue jumps nearly 74%
Shares of ITI Ltd rallied sharply on Wednesday, May 28, climbing as much as 9 percent in intra-day trade after the company reported a substantial improvement in its March quarter earnings. The stock touched a high of ₹ 336.75, marking its strongest level since January 30, 2025.
Investor confidence was bolstered by ITI's March 2025 quarter results, which showed a significant reduction in net losses and a robust improvement in revenue. The company reported a net loss of just ₹ 4.4 crore, compared to a steep ₹ 239 crore loss in the corresponding quarter of the previous year.
Revenue for the quarter surged 73.9 percent year-on-year, reaching ₹ 1,046 crore from ₹ 601 crore in Q4FY24. Furthermore, EBITDA loss narrowed to ₹ 28.2 crore from ₹ 174 crore, indicating a meaningful improvement in the company's operational performance.
In addition to the strong earnings, ITI announced that its Board of Directors approved the allotment of equity shares on a preferential basis to the President of India, against a CAPEX infusion of ₹ 59 crore in line with a BIFR Order dated January 8, 2013.
Founded in 1948, ITI Limited is India's first public sector undertaking (PSU) in the telecommunications space. Over the years, it has built a strong manufacturing footprint with facilities in Bengaluru, Naini, Rae Bareli, Mankapur, and Palakkad, and a dedicated R&D centre in Bengaluru.
The company also operates 11 Marketing, Services & Projects (MSP) centres across India in cities such as Mumbai, Chennai, Hyderabad, Kolkata, Delhi, and Chandigarh, among others.
ITI's diverse product portfolio includes advanced telecom and defence equipment such as Gigabit Passive Optical Networks (GPON), Managed Leased Line Network (MLLN) products, Wi-Fi access points, encryption units, smart energy meters, smart cards, and mini PCs. It also manufactures passive infrastructure products like optical fibre cables, HDPE ducts, and antennas.
Following Wednesday's rally, ITI shares were trading 43 percent below their 52-week high of ₹ 592.85, hit in January 2025. However, the stock has recovered significantly from its 52-week low of ₹ 210.20, touched in October 2024—marking a rebound of over 60 percent.
Over the past year, the PSU stock have declined 8.5 percent, but recent months have shown a turnaround. The stock has gained 29.5 percent in May alone, following a 2.5 percent rise in April and a 1.2 percent gain in March. Prior to this recovery, it had shed 16 percent in January and 24 percent in February.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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India Ratings and Research (Ind-Ra) view on ITI As a PSU under the Ministry of Communications, ITI plays a crucial role in the telecommunication and technology sectors, contributing to the government's vision of a 'Digital India' and 'Make in India'. ITI has been a key contractor for major government projects of BSNL, Mahanagar Telephone Nigam Limited (MTNL), Ministry of Defence, Ministry of Rural Development, etc., thereby making it a strategically important entity for the Gol. ITI receives financial and non-financial support from the Gol on a consistent basis, which is likely to continue in the medium term. In addition to direct financial support, the availability of some of the projects on a preferential basis, support to obtain timely approvals for the company's various land monetisation efforts, and timely payments from other government-owned entities, which are ITI's customers, are some of the non-financial supports provided by the Gol to ITI. 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