ITI limited posts half-year loss amid operational challenges

ITI Limited recorded a consolidated net loss of INR 11,795 lakhs for the half-year ended September 30, 2025, an increase from INR 6,920 lakhs in the previous quarter. The company’s total revenue for the half-year was INR 1,06,927 lakhs. Basic and diluted earnings per share (EPS) for the half-year stood at (INR 1.23). The board of directors approved these results on November 13, 2025, following the audit committee's recommendation.

The company's financial results are impacted by several factors, including unbilled revenue, pending reconciliations of various accounts, and overdue receivables, with INR 24,401.40 lakhs predominantly from government of India/public sector undertakings. Additionally, there are concerns regarding inventory valuation and the adequacy of provisions for delayed payments and obsolete inventory.

Auditors have issued a disclaimer of conclusion due to insufficient appropriate evidence concerning compliance with Ind AS 115 revenue recognition for long-term contracts and the lack of assessment for probable losses from cost overruns. Despite these challenges, management maintains a "going concern" basis, citing a high order book value and continued government support.