ITI Limited’s Board of Directors approved the Unaudited Financial Results for both Standalone and Consolidated operations for the Quarter and Nine Months ended December 31, 2025, following the Audit Committee’s recommendation on February 13, 2026. The results reflect significant net losses across both periods, particularly on a standalone basis. The accompanying auditor’s review report includes several qualifications and a disclaimer due to various outstanding confirmation and assessment issues, including the impact of a revival plan and significant contingent liabilities.
Board Approval for Q3 FY2026 Financials
ITI Limited announced that its Board of Directors formally approved the Unaudited Financial Results for the quarter and the 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 Summary (₹ in Lakhs)
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 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 Summary (₹ in Lakhs)
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 and 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.
Going Concern and Revival Plan
Management maintains that the going concern basis of accounting is appropriate, citing the high-value order book (₹1,85,464 Lakhs), continued government support, and planned conversion of unbilled revenue. However, the company is 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 numerous issues impacting unit accounts:
- Accounts Receivable: Overdue amounts totaling ₹26,594.26 lakhs from Government of India/PSUs remain largely unprovided for against expected credit losses.
- 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.
- 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.
- Statutory Compliance: Inadequate processes for identifying MSMED suppliers and verifying interest provisions for delayed payments.
- Exceptional Items: Significant exceptional charges include ₹7,14,35,860 for interest on Gratuity & PL and a ₹2,74,25,247 transfer from GIA Capital for the nine months ended December 31, 2025.
Source: BSE
