A leading PSU telecom stock surged 9 percent after the company reported a remarkable 182 percent year-on-year increase in revenue. The rally was further fueled by the announcement of a preferential allotment of shares worth Rs.59 crores to the President of India, boosting investor confidence and market sentiment.
During Wednesday’s trading session, the shares of ITI Ltd reached an intraday high of Rs.336.80 per share, rising 8.9 percent from the previous close of Rs.309.25 per share. The shares have retreated since then and are currently at Rs.331.75 per share. Over the past five years, the shares have delivered over 300 percent returns.
Financial Performance
ITI Ltd witnessed a sharp rise in performance, backed by strong growth in both revenue and net profit, as highlighted in its latest financial results. In Q4 FY25, the company reported revenue of Rs.1,081.03 crores, reflecting a 77.1 percent increase from Rs.610.55 crores in Q4 FY24. On a sequential basis, revenue rose by 2.5 percent from Rs.1,054.70 crores in Q3 FY25, indicating steady operational momentum.
Net losses for Q4 FY25 narrowed significantly to Rs.4.38 crores, compared to a loss of Rs.238.82 crores in Q4 FY24 and Rs.48.88 crores in Q3 FY25, showcasing substantial improvement in profitability.
For the full year FY25, the company recorded revenue of Rs.3,701.62 crores, up 182.9 percent from Rs.1,308.12 crores in FY24. Annual net losses reduced sharply to Rs.214.89 crores, an improvement from Rs.568.92 crores in the previous fiscal year.
Preferential Shares Allotment
The Board of Directors of ITI Ltd, in its meeting held on 27th May 2025, approved the allotment of equity shares on a preferential basis to the President of India in exchange for CAPEX funds received amounting to Rs.59 crores. As of May 2025, the President Of India holds an 89.97 percent stake in ITI Ltd.
ITI Ltd derives over 90 percent of its total revenue from government entities, including various public sector undertakings, the Ministry of Defence, BSNL, BharatNet, the Indian Air Force, and the Ministry of Home Affairs. The company’s revenue base is heavily concentrated, with the top three clients accounting for nearly half of its earnings in FY24. Given that a significant portion of the current order book includes large-scale projects from BSNL and ASCON, this concentration is expected to persist over the short to medium term.
ITI Limited is a prominent player in the electronic manufacturing sector, specializing in defence electronics products and systems. The company delivers a comprehensive portfolio of telecom products and integrated solutions spanning switching, transmission, access, and subscriber premises equipment. It also manufactures mobile infrastructure equipment based on both GSM (Global System for Mobile Communications) and CDMA (Code Division Multiple Access) technologies.
Written by – Siddesh S Raskar
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