Q2 FY27 results analysis · November 13, 2026
ITI Ltd Q2 FY27 Results Analysis: Revenue Slips 11%, Going Concern Flag Raised
−11.3%Revenue year on year, Rs. 481.99 Cr
Source: Quarterly results filing (BSE)
Quick summary
ITI Ltd's Q2 FY27 numbers came in soft. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 13, 2026 |
|---|---|
| Revenue (Q2) | Rs. 481.99 Cr (-11.30% YoY) |
| PAT (Q2) | Rs. -31.44 Cr |
| EBITDA margin | 1.35% (+157 bps YoY) |
| EPS (Q2) | Rs. -0.33 |
Quarter Snapshot
Q2 revenue of Rs.481.99 crore fell 11.30% YoY but rebounded 13.40% QoQ, while the operating loss narrowed 38.04% YoY and derived EBITDA turned positive at 1.35% margin. The balance sheet is the weak flank: CFO swung to -Rs.348.79 crore, borrowings rose Rs.325.08 crore to 0.59x net worth, and the limited reviewer issued a Disclaimer of Conclusion with a going-concern material uncertainty. The Rs.18,220.53 crore order book and December 2026 ASCON Phase-IV handover are the key levers, but conversion into revenue and cash remains unproven.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "Q2 is more likely to show early billing commencement than full run-rate" — soft trend | Revenue +13.40% QoQ, −11.30% YoY | Partially |
| Margins | "operating flat-to-compressing… the cost squeeze lands in-quarter" (memory costs) | EBITDA margin improved to 1.35% from 0.42% — filing silent on input costs | Contradicted this quarter |
| Finance costs | "finance costs should ease… land-sale-funded debt repayment reduces interest from Q2" | Finance costs +27.85% QoQ (Rs.38.33 Cr vs Rs.29.98 Cr); −27.67% YoY; borrowings +Rs.325.08 Cr | Contradicted on QoQ direction |
| Auditor position | Watch whether the Disclaimer of Conclusion persists | It persisted, on both standalone and consolidated results | Played out |
| ASCON milestones | "treat those milestones as at-risk until confirmed" | No ASCON progress update in the filing | Not observable |
| Order-book gap | "the unreconciled order-book gap… and any fresh order disclosure" | Rs.18,220.53 Cr re-cited in note 10 (basis still undefined) | Played out |
| GST land-sale receipt | "the pending Rs.30.11 Cr GST land-sale receipt" | Rs.30.11 Cr received in H1 (cash flow) | Played out |
| MSP after August deadline | "MSP position after the August 2026 deadline" | Promoter still 90.02%, under consideration — non-compliance persists | Played out |
Read our full results preview.
Management Guidance vs Delivery
| What management said | What happened | Verdict |
|---|---|---|
| Going concern is appropriate on order book, unbilled conversion, bank sanctions, GoI support and land monetization · management statement in the Q2 filing (note 10) | Order book Rs.18,220.53 Cr (~20× H1 revenue) and unbilled Rs.2,408.46 Cr support the claim; but CFO of −Rs.348.79 Cr, borrowings +Rs.325.08 Cr, and no land-sale closure strain the working-capital and monetization… | Too Early |
| Order book provides a "robust foundation for future growth" · CMD, FY26 annual report | Book-to-H1-revenue coverage of 20.09×; but conversion into Q2 revenue was −11.30% YoY | Confirmed on stock, Contradicted on flow |
Key Numbers, Quarter by Quarter
| Metric | Mar-26 | Jun-26 | Sep-26 |
|---|---|---|---|
| Order book (Rs. Cr) | ~18,637 (FY26 AR, incl. advance POs) | 13,882.81 (Q1 filing) | 18,220.53 (Q2 filing note 10) |
| Unbilled revenue (Rs. Cr) | 2,241.11 | 2,346.15 | 2,408.46 |
| Employees | 1,166 | — | — |
| EBITDA margin % (derived) | — (FY26: pre-exceptional loss) | 0.42 | 1.35 |
Key Investment Insights
Key Positives
- Revenue rebounded 13.40% QoQ to Rs.481.99 crore from Q1's five-quarter low of Rs.425.03 crore
- Operating loss narrowed 38.04% YoY to Rs.32.55 crore from Rs.52.53 crore; H1 loss narrowed 46.0% to Rs.63.69 crore
- P&L-derived EBITDA turned positive at Rs.6.51 crore with margin of 1.35% vs (0.22)% YoY and 0.42% QoQ
- Order book of Rs.18,220.53 crore equals ~20.09x H1 revenue; unbilled revenue of Rs.2,408.46 crore expected to convert within 12 months
- Employee costs fell 16.13% YoY to Rs.32.13 crore; finance costs fell 27.67% YoY to Rs.38.33 crore
- Revival plan assistance of Rs.3,084.35 crore (74.2%) of the CCEA-approved Rs.4,156.79 crore received to date
- Rs.30.11 crore pending GST land-sale receipt received in H1; Rs.55.00 crore income-tax refund received
Risk Factors
- Revenue declined 11.30% YoY, the second straight quarter of YoY decline; H1 revenue down 12.91%
- Disclaimer of Conclusion by the limited reviewer on Q2/H1 results, with going-concern material uncertainty flagged; FY26 audit carried a Disclaimer of Opinion
- Operating cash flow swung from +Rs.37.22 crore to -Rs.348.79 crore; FCF of -Rs.348.86 crore with capex near zero
- Current borrowings rose Rs.325.08 crore to Rs.1,090.02 crore (0.59x net worth) while net worth eroded Rs.64.78 crore; cash cover only Rs.18.70 crore
- Branch-auditor matters: Palakkad receivables of Rs.893.54 crore overdue >3 years against ECL provision of only Rs.3.31 crore; Raebareli unbilled revenue of Rs.146.88 crore pertaining to earlier years
- Minimum public shareholding non-compliance persists with promoter (GoI) at 90.02% vs the 25% requirement
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