ITI Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

ITI Ltd trades at ₹277, losing momentum at the top and 3 weeks into that stage. That is −5.4% against its own 200-day average. It sits at 35% of a 52-week range of ₹242 to ₹341. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (4 weeks and counting).

Today the stock is losing momentum at the top — week 3 of stage 3, confirmed. At ₹277 it trades −5.4% versus its 200-day average and sits at 35% of its 52-week range (₹242–₹341).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +1,043% while the NIFTY 500 moved +276% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (4 weeks and counting; last ahead the week of 2026-07-03) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

ITI Ltd trades at 138.2× P/E, mid-range by its own standards (67th percentile). Its long-run median P/E is 88.2×, measured across 5.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 138.2× is mid-range by its own standards (67th percentile), against a long-run median of 88.2× measured over 5.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

The price move, decomposed: over 5y, of the +16.7%/yr price move, ~−24.5%/yr came from earnings growth and ~+41.2 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

ITI Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 12 quarters across 2 curves, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

The latest quarter’s profit carries a one-off item larger than the operating base, so the profit curve is shown but does not vote in the stage call.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

4-Factor Sector Score

36.8/100 — rank 12 of 18 in Telecom Services · 71% evidence confidence

ITI Ltd scores 36.8 out of 100 against the 18 companies it is compared with in Telecom Services, ranking 12. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 19.4 + 5.4 + 8.9 + 3.1 = 36.8. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

ITI Ltd reported ₹628 Cr of revenue in the Mar 26 quarter, −40.0% year on year. Over 9 years it has compounded at 4.0% a year. The last full year, FY26, came in at ₹2,184 Cr. The last four reported quarters add to ₹2,184 Cr.

FY26 revenue came in at ₹2,184 Cr (−39.6% on the year), capping 9 years at 4.0% compound. The latest quarter (Mar 26) printed ₹628 Cr, −40.0% year on year.

Pace check: the last four quarters averaged −35.3% growth against the decade's 4.0% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −39.6% over the last 4 quarters against +31.5%/yr over the last 8 — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

ITI Ltd's operating margin is 4.3% in the Mar 26 quarter, +7.0 percentage points against the same quarter a year ago. Across 10 fiscal years the operating margin has ranged −25.0% to 7.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 4.3%, +7.0 pp against the same quarter a year ago. Across 10 fiscal years the operating margin has ranged −25.0%–7.0%.

Why the margin moved: operating margin went +7.0 pp year on year while gross margin went +21.3 pp — the gain came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

ITI Ltd earned ₹436 Cr of net profit in the Mar 26 quarter. Full-year FY26 profit was ₹293 Cr. The 9-year compound rate is 1.1%. That is 69.4% of the quarter's revenue. The same quarter a year earlier lost ₹4.0 Cr. 11 of the last 12 reported quarters were loss-making.

Mar 26 profit was ₹436 Cr, null year on year. On the full year, FY26 printed ₹293 Cr (null), and the 9-year compound rate is 1.1%.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years −112% of ITI Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹−135 Cr of operating cash against ₹293 Cr of profit. After ₹−287 Cr of capital spending, ₹152 Cr was left as free cash. Cash resolution here is annual, because quarterly cash statements are not published.

FY26: operating cash of ₹−135 Cr against reported profit of ₹293 Cr, leaving free cash of ₹152 Cr after ₹−287 Cr of capital spending. Across the last 3 fiscal years the conversion rate is −112% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at −112%: the cash cycle stretched 941 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 941 days — the next section's job is to find where the cash is stuck.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

ITI Ltd's cash conversion cycle runs −47 days in FY26, up from −988 days in FY21. Capital spending ran ₹−327 Cr over the last 3 years. At FY26 sales of ₹2,184 Cr each day of that cycle holds about ₹6.0 Cr, so roughly ₹−281 Cr sits inside the business at any moment.

FY26: debtors at 486 days, inventory at 41 days — roughly 1.3 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of −47 days, looser than FY21's −988.

The full loop: cash goes out to suppliers and production on day 0; stock waits 41 days to sell; customers pay about 486 days after that; and suppliers themselves are paid at 574 days — netting out to the −47-day cycle.

In money terms: at FY26 sales of ₹2,184 Cr, each day of the cycle holds about ₹6.0 Cr — so the −47-day loop keeps roughly ₹−281 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹−327 Cr over the last 3 fiscal years against ₹178 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹16.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

ITI Ltd earns a ROCE of 1% in FY26. That is up from a trough of −8% in FY24. Return on invested capital clears the cost of that capital by −12.3 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 13.4% net margin on 0.23× asset turns.

FY26 ROCE is 1%, recovered from a FY24 trough of −8% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 13.4% net margin × 0.23× asset turns × 4.90× balance-sheet leverage ≈ 15.1% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: −0.3% − 12.0% = a −12.3 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

ITI Ltd carries total debt of ₹765 Cr against shareholder equity of ₹1,906 Cr as of Mar 26, a debt-to-equity of 0.40. On the annual view that ratio went from 0.62 in FY22 to 0.40 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹765 Cr against shareholder equity of ₹1,906 Cr — a debt-to-equity of 0.40. On the annual view, debt-to-equity went from 0.62 (FY22) to 0.40 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of ITI Ltd moved a full percentage point over the last two years — the register is quiet. Foreign institutions moved +0.0 points over the same window, to 0.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: +0.0 points over 8 quarters to 90.0%; Foreign institutions: +0.0 points over 8 quarters to 0.1%; Domestic institutions: +0.0 points over 8 quarters to 0.1%.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

ITI Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Frequently asked questions