ITI Limited (ITI) AI Stock Analysis

• Market Cap: ₹232.97B
• Dividend Yield: N/A
• Average Volume (3M): 398.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: 30.27%
• EPS Growth: 65.87%
• Country: IN
• Employees: 1,007
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.26
• Shares Outstanding: 960,886,960
• 10 Day Avg. Volume: 1,075,417
• 30 Day Avg. Volume: 398,070
• PEG Ratio: 1.81
• Price to Book (P/B): 14.86
• Price to Sales (P/S): 6.68
• P/FCF Ratio: -159.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ₹275.00 ▼(-11.90% Downside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

The overall stock score for ITI Limited is primarily impacted by its financial performance, which shows significant challenges with profitability and cost management. Technical analysis provides a slightly positive outlook with the stock trading above key moving averages, but bearish momentum indicators temper this optimism. Valuation concerns due to a negative P/E ratio further weigh down the score.

Positive Factors

Strategic government supplier

State ownership and a domestic producer position create durable preferential access to government and institutional tenders for telecom infrastructure. This strengthens contract visibility, supports long-term backlog potential, and raises barriers for private/foreign competitors in strategic projects.

Contract and service-based revenue model

A mix of manufacturing, project-delivery and after-sales services produces multi-year revenue streams tied to milestones and maintenance contracts. This model supports recurring service revenue, lifecycle relationships with institutional clients, and predictability across project timelines.

Improving cash position indicators

An improved cash position and pickup in free cash flow support operational continuity and reduce short-term financing needs. Sustained cash generation would strengthen liquidity, enable bidding on larger tenders, and provide flexibility for working capital or capex investments.

Negative Factors

Persistent net losses

Ongoing net losses and negative returns erode shareholders' equity and limit retained earnings available for reinvestment. Over months, sustained losses can force reliance on external funding, constrain strategic investments, and weaken competitive positioning in capital-intensive telecom contracts.

Weak and negative margins

Low gross margins and negative EBIT indicate structural cost or pricing pressures. Persistently weak margins reduce ability to absorb input cost increases, limit reinvestment capacity, and make profitable scaling difficult in a price-competitive government tender environment.

Rising reliance on liabilities

A declining equity ratio and greater reliance on liabilities reduces financial flexibility and raises refinancing and interest risk. Over time this can limit capacity to fund new contracts, increase cost of capital, and constrain strategic initiatives without deleterious capital restructuring.

ITI Limited Business Overview & Revenue Model

Company Description

ITI Limited engages in the manufacture, sale, and servicing of telecommunication equipment primarily in India. Its telecom products and solutions include switching, transmission, access, and subscriber premises equipment. The company also offers energy meters, mini personal computers, 3D printing products, bank automation products, gigabit passive optical network OLT and ONT products, PCM multiplexers, ruggedized telephones for defense forces, smart and banking cards, set top boxes, hand held terminals for smart card authentication, and Wi-Fi equipment. In addition, it provides encryption devices for defense, solar power modules, switched mode power supply systems, Internet of Things products, radio modems, and AN rack hardware products. Further, the company trades in optical transport network products, such as DWDM; managed leased line network products; signaling point network products; IP/MPLS routers and switches; network management system solutions; microwave and satellite communication equipment; next generation network equipment; and information technology products and solutions. Additionally, it offers installation, commissioning, operation, and maintenance services; electronic contract manufacturing services; mechanical fabrication services; reliability engineering lab services; printed circuit board manufacturing services; data center hosting services; EMI/EMC and environmental testing of electronic products; 3D printing services; and component screening services. ITI Limited was founded in 1948 and is based in Bengaluru, India.

How the Company Makes Money

ITI primarily makes money through the sale and execution of telecom and electronics-related projects and supplies, typically to government and institutional customers. Revenue is generated from (1) manufacturing and supply of telecom/network equipment and related hardware against contracts and tenders, (2) project-based delivery that may include installation, commissioning, and system integration services where ITI is paid based on milestones, acceptance, or delivery terms specified in customer contracts, and (3) after-sales support and maintenance/services associated with deployed equipment where applicable under service agreements. Any further breakdown of key revenue streams by segment, the relative contribution of each stream, or specific named partnerships driving earnings is null due to lack of verified details provided in the prompt.

ITI Limited Financial Statement Overview

Summary

ITI Limited faces financial challenges with consistent net losses impacting profit margins and return on equity. Despite revenue growth, the company struggles with cost management and operational efficiency. The balance sheet shows adequate liquidity, but increasing liabilities pose a risk.

Income Statement

The income statement reveals a concerning trend with significant net losses and negative EBIT in recent years. While there was a notable revenue increase from 2024 to 2025, the company has struggled with profitability, as evidenced by the negative net profit and EBIT margins. The gross profit margin is also low, indicating challenges in managing production costs relative to revenue.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage levels. However, the company's equity ratio has been declining, indicating increased reliance on liabilities. Return on equity is negative due to net losses, affecting the overall financial stability. The company's cash position has improved, but the overall asset base has not translated into profitability.

Cash Flow

Cash flow analysis highlights significant volatility, with fluctuating free cash flow and operating cash flow. While there is a recent improvement in free cash flow, the negative operating cash flow raises concerns about the company's ability to sustain operations without external financing. The free cash flow to net income ratio is unfavorably high due to persistent net losses.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	31.22B	36.16B	12.64B	13.95B	18.61B	23.62B
Gross Profit	2.11B	2.26B	-231.04M	1.48B	3.78B	3.95B
EBITDA	928.00M	786.10M	-3.10B	-1.01B	3.63B	2.13B
Net Income	-1.71B	-2.15B	-5.69B	-3.60B	1.19B	94.78M
Balance Sheet
Total Assets	104.29B	104.02B	95.98B	94.91B	95.75B	89.13B
Cash, Cash Equivalents and Short-Term Investments	21.55B	23.55B	6.52B	2.15B	968.46M	4.34B
Total Debt	13.11B	14.81B	17.96B	18.77B	16.13B	14.65B
Total Liabilities	89.25B	87.78B	78.14B	71.17B	69.67B	64.69B
Stockholders Equity	15.04B	16.25B	17.84B	23.74B	26.20B	24.44B
Cash Flow
Free Cash Flow	357.20M	-1.51B	9.36B	-3.54B	-4.98B	626.62M
Operating Cash Flow	372.20M	-1.35B	9.74B	-2.94B	-4.37B	940.73M
Investing Cash Flow	2.04B	6.51B	-5.56B	462.10M	1.78B	-3.04B
Financing Cash Flow	-2.44B	-4.85B	-3.22B	2.41B	2.47B	1.98B

ITI Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 312.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ITI, the sentiment is Negative. The current price of 312.15 is above the 20-day moving average (MA) of 268.18, above the 50-day MA of 285.15, and above the 200-day MA of 307.27, indicating a bearish trend. The MACD of -10.56 indicates Positive momentum. The RSI at 29.34 is Positive, neither overbought nor oversold. The STOCH value of 44.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ITI.

ITI Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TATAELXSI	74 Outperform	₹264.96B	74.95	―	1.38%	-1.19%	-17.92%
KPITTECH	66 Neutral	₹180.84B	59.84	―	0.69%	13.34%	5.98%
LTTS	62 Neutral	₹363.24B	39.06	―	1.19%	14.88%	-2.60%
TEJASNET	62 Neutral	₹75.32B	-10.28	―	0.55%	-17.23%	-185.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KAYNES	57 Neutral	₹232.98B	87.75	―	―	45.11%	54.19%
ITI	49 Neutral	₹232.97B	-294.01	―	―	30.27%	65.87%