India Ratings and Research (Ind-Ra) has revised the outlook on ITI Limited’s (ITIL) bank loan facilities to Positive from Stable. The agency also affirmed the ratings, assigning IND BB+ with a Positive outlook and IND A4+. This action reflects Ind-Ra’s expectation of strengthening ITIL’s credit profile, supported by anticipated improvements in profitability and liquidity.
India Ratings Revises ITI Limited’s Outlook to Positive
India Ratings and Research (Ind-Ra) announced on August 3, 2026, that it has revised the outlook on ITI Limited’s (ITIL) bank loan facilities from Stable to Positive. Concurrently, the agency has affirmed the ratings for these facilities.
Rating Details
The affirmed ratings are IND BB+ with a Positive outlook and IND A4+. The specific bank loan facilities rated are for a total size of INR 42,213.90 million. The rating action signifies a positive assessment of the company’s current and future creditworthiness.
Rationale for Outlook Revision
The revision in outlook to Positive is driven by Ind-Ra’s anticipation of a strengthening credit profile for ITIL. This is expected to be bolstered by continued improvements in profitability margins, following a moderate operational recovery observed in FY26. Additionally, the ongoing monetisation of non-core land assets is projected to enhance the company’s liquidity, facilitate deleveraging, and lead to a substantial reduction in its overall debt burden. Proceeds from the proposed monetisation of an additional land parcel are expected to further support debt reduction and strengthen the balance sheet.
Support from Government Linkages
The ratings continue to benefit from ITIL’s strong strategic linkages with the Government of India (Gol). These linkages underpin expectations of continued institutional and financial support, if required. ITIL’s long-standing presence of over seven decades in the telecommunications sector, coupled with its track record of executing critical projects, reinforces its operational credibility.
Key Rating Drivers
Strengths cited include ITIL’s established track record of executing critical projects, expected revenue growth backed by a strong order book, moderate improvements in profitability, strong linkages with the Gol, and an improving credit profile due to significant debt reduction.
Weaknesses identified are customer concentration risk, high receivables, weak corporate governance, and the competitive nature of the industry, including technological and regulatory risks.
Financial Highlights
For FY26, ITIL reported revenue of INR 21,837 million and an EBITDA of INR 436 million, with an EBITDA margin of 2.0%. Interest coverage stood at 0.45x, while net leverage was 17.0x.
Source: BSE
