ITI swings to Rs 32.25 cr loss as operating margin falls to 0.42%
Revenue fell 32.28% sequentially, while expenses declined 29.56%; the prior quarter's profit had been driven by Rs 472.47 cr of other income.
Filed 13 Aug 2026, 18:17 IST · after market close · ITI Ltd (ITI)
Key takeaways
- ITI Ltd reported a consolidated net loss of Rs 32.25 cr in Q1FY27 after a Rs 436.10 cr profit in Q4FY26.
- Operating margin narrowed 3.85 percentage points sequentially to 0.42% as expenses fell less than revenue.
- ITI's 0.42% operating margin was 18.27 percentage points below the 18.69% median of 11 reported telecom peers.
Price around the results
Operating profit could not absorb finance costs
This consolidated quarter reversed the prior quarter's profit, with net loss at Rs 32.25 cr versus profit before tax of Rs 436.10 cr in Q4FY26. Operating profit fell 93.29% sequentially to Rs 1.80 cr, while interest of Rs 29.98 cr and depreciation of Rs 12.52 cr more than offset it. Other income fell 98.21% to Rs 8.45 cr, and its reported share of pre-tax profit was -26.20%, underscoring that it did not support earnings this quarter.
Costs outpaced the revenue decline
Revenue declined 32.28% sequentially to Rs 425.03 cr, but expenses fell only 29.56% to Rs 423.23 cr. Costs therefore grew faster than revenue on a sequential basis, reducing operating margin by 3.85 percentage points to 0.42%. Interest still declined 34.01% and depreciation fell 29.46%, but the smaller operating profit left the company with a loss despite a zero tax rate.
Margin has declined for two consecutive quarters
Operating margin fell from 4.92% in Q3FY26 to 4.27% in Q4FY26 and 0.42% in Q1FY27, marking two successive quarterly declines after the Q3 peak. ITI's margin was 18.27 percentage points below the 18.69% median for the 11 telecom peers that had reported. It ranked second from the bottom on this measure.
Results were filed after market close
The results were filed after market close, so there was no immediate market reaction to report. In the last eight result reactions captured, the stock fell every time, with a median absolute move of 2.20%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹425 cr | ₹628 cr | -32.28% |
| Other income | ₹8 cr | ₹472 cr | -98.21% |
| Expenses | ₹423 cr | ₹601 cr | -29.56% |
| Operating profit | ₹2 cr | ₹27 cr | -93.29% |
| Operating margin (%) | 0.42% | 4.27% | — |
| Interest | ₹30 cr | ₹45 cr | -34.01% |
| Depreciation | ₹13 cr | ₹18 cr | -29.46% |
| Profit before tax | ₹-32 cr | ₹436 cr | — |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹-32 cr | ₹436 cr | — |
| EPS (₹) | ₹-0.33 | ₹4.53 | — |
Operating margin of 0.42% compares with a Telecommunication sector median of 18.69% across 11 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 0.42% after two consecutive quarterly declines.
- Whether expenses fall faster than or at least in line with revenue from the current Rs 425.03 cr base.
- Whether interest remains below the current Rs 29.98 cr level.