ITI Shares Soar 9% After Narrowed Q4 Loss and 74% Surge in Revenue

ITI Shares Surge 9% as Q4 Loss Narrows Sharply and Revenue Jumps Nearly 74%

Mumbai, India | May 28, 2025
In a significant turn of events, ITI Ltd—India’s premier telecom and defense PSU—rallied over 9% intraday following its stellar Q4 FY25 results. The company reported a sharp reduction in its quarterly losses, alongside a whopping 74% surge in revenue, giving investors newfound optimism over the company’s financial turnaround.

The market responded enthusiastically, with ITI shares touching ₹186.90, registering a jump from the previous close of ₹171.45 on the NSE. The spike came after the company disclosed its audited financials for the quarter ended March 2025.

Financial Snapshot: Q4 FY25 vs Q4 FY24

A Clear Revival: Investors Cheer Improved Margins

ITI Ltd’s Q4 report signals that the company is on a path to financial recovery. Though still in the red, the company has more than halved its losses compared to the same period last year. This performance, coupled with healthy revenue growth, paints a more optimistic outlook for the PSU telecom giant.

The narrowing of losses came primarily from two factors:

1. Strong project execution across various government and defense orders.

2. Revenue recognition from long-pending contracts as part of the BharatNet and smart city projects.

The management highlighted that the company’s pipeline is improving and that fresh orders from defense, railways, and private clients are expected to add momentum in FY26.

What’s Driving the Revenue Growth?

The 74% year-on-year revenue jump was largely driven by:

• Timely delivery of telecom equipment

• Execution of key Government of India contracts

• Higher realization from its Data Center and IoT services

A significant part of ITI’s order book is tied to state-sponsored programs, including BharatNet, Make in India for Telecom, and Smart Cities Mission, where the firm functions as a systems integrator and equipment provider.

In particular, the revenue from the Network Systems Unit rose sharply, which contributed nearly 60% of the overall topline in Q4.

Strategic Developments That Boosted Sentiment

 BharatNet Progress:

ITI Ltd has been one of the core implementation partners for BharatNet Phase-II. During the earnings call, the management confirmed that fiber rollout and connectivity operations have resumed at full pace after previous COVID-related delays.

 Defense and Railways Orders:

The company recently bagged orders worth over ₹200 crore from defense clients for secure communication infrastructure. Additionally, ITI is bidding for railway signaling modernization contracts, which could further aid revenue visibility.

 Revival of Data Center and IoT Services:

The revival of its Bangalore-based Tier-III Data Center has opened doors for higher-margin managed services revenue. IoT-based solutions for agriculture, healthcare, and smart meters are being piloted in multiple states.

Management Commentary

Rajesh Rai, CMD of ITI Ltd, expressed optimism over the Q4 performance, saying:

“We are seeing tangible results from our restructuring and diversification efforts. The focus on innovation, revival of infrastructure, and aggressive project execution have started bearing fruit. While profitability remains a challenge, the trajectory is encouraging.”

Still a Long Road Ahead?

Despite the upbeat earnings and market reaction, analysts remain cautiously optimistic. While the company has posted better-than-expected results, it continues to report losses. Furthermore, a large part of its revenue is still dependent on government contracts, which can be vulnerable to policy delays or funding bottlenecks.

The debt burden continues to weigh heavy, although the company reported marginal improvements in its interest coverage ratio.

Stock Performance and Technical Outlook

As of May 28, 2025:

• Current Price: ₹186.90

• 52-Week High: ₹196.45

• 52-Week Low: ₹87.40

• YTD Performance: ▲ +55%

• Market Cap: ₹17,200 crore

 Technical Indicators:

• RSI: 68 (Approaching Overbought)

• MACD: Positive divergence

• Support: ₹170

• Resistance: ₹190

With the stock trading close to its 52-week high and RSI nearing overbought territory, short-term traders may see some consolidation, while long-term investors are betting on the company’s recovery momentum.

ITI Ltd: Legacy and Transformation

Originally established as Indian Telephone Industries, ITI Ltd was the first PSU in the telecom sector. In the past few years, the company has transitioned from a traditional equipment manufacturer to a systems integrator and digital solutions provider, tapping into IoT, smart infrastructure, and defense communications.

Key transformation pillars:

• Shift from legacy switching equipment to IP-based networks

• Entry into cybersecurity and data hosting

• Strategic partnerships with startups and tech firms to develop indigenous solutions

Outlook for FY26

Given the robust Q4 numbers, analysts are adjusting their FY26 projections. If the momentum sustains, ITI could edge closer to break-even status in the coming fiscal.

Expected Drivers for FY26:

• Execution of ₹4,000 crore worth of existing orders

• Anticipated new orders from BSNL 4G rollout

• Expansion in private sector turnkey projects

• Monetization of existing real estate and infrastructure assets

Brokerages remain watchful but bullish, with some recommending a long-term BUY with a price target of ₹220–₹240 over the next 12 months.

Market Reactions

Institutional investors were seen accumulating ITI stock post-results. Mutual funds holding PSU-focused portfolios have shown interest, reflecting renewed faith in India’s telecom PSUs amid rising digital infrastructure demand.

On social media, #ITI and #Q4Results trended as retail investors shared their bullish takes, citing strong growth visibility and undervaluation relative to private peers.

ITI Ltd’s Q4 FY25 earnings signal a credible revival story. Though challenges persist—particularly in terms of profitability and debt—the company’s massive revenue growth and narrowing losses provide a solid foundation for a long-term turnaround.

With strategic wins in government, defense, and digital services, ITI seems better positioned than ever in recent years. For investors, the Q4 numbers offer a promising glimpse into what the future might hold for India’s oldest telecom PSU.

Summary

• Q4 loss narrowed to ₹78.22 crore vs ₹181.82 crore YoY

• Revenue jumped 74% YoY to ₹577.86 crore

• Share price surged 9% intraday post-results

• Major gains from defense, smart city, and BharatNet projects

• Improved operational efficiencies and execution pace

• Cautious optimism among analysts and investors