Telecom Stock Jumps 7% After Receiving ₹856 Cr BSNL 4G Expansion Order

Synopsis: A state-run telecom equipment manufacturer has secured a fresh turnkey mandate worth several hundred crores from the state-owned telecom operator BSNL to expand mobile broadband infrastructure across the western region, extending a partnership that recently delivered a multi-thousand-crore project executed alongside a leading IT services major.

The company has once again found itself at the centre of India’s push for self-reliant telecom manufacturing, landing a fresh mandate from its largest government client. The order builds on a long-standing relationship focused on expanding mobile network access in underserved pockets of the country and comes close on the heels of a much larger project recently completed in partnership with a major IT services company.

With a market capitalization of approximately Rs. 28,000 crore, the shares of ITI Limited were trading at around Rs. 302 per share; the stock went up by 7 percent from the day’s low after the announcement. It is trading at a P/E of approximately 99x. 

Order Details 

ITI Limited has won a work order from Bharat Sanchar Nigam Limited (BSNL) worth Rs 856.39 crore for the expansion of the 4G mobile network in the West Zone. The scope covers planning, engineering, supply, installation, testing, and commissioning of 4G infrastructure on a turnkey basis across 7,613 sites, including saturation sites funded under the Digital Bharat Nidhi (DBN) scheme. The order forms part of BSNL’s broader effort to roll out indigenously developed 4G telecom equipment as part of the government’s Atmanirbhar Bharat push in the telecom sector. 

It comes on the back of ITI’s earlier success in the region; the company, working in a consortium with Tata Consultancy Services, had executed a Rs 2,640 crore turnkey project under 4G Phase IX.2, covering RF planning, installation, commissioning, integration, and annual maintenance across 23,633 sites spanning Maharashtra, Gujarat, Goa, Chhattisgarh, Madhya Pradesh, and the Mumbai licensed service area. The fresh order effectively extends that West Zone footprint with additional site coverage.

Commenting on the development, Chairman and Managing Director Rajesh Rai noted that the order reflected the continued confidence BSNL has placed in ITI’s execution track record and reaffirmed the company’s role as a key partner in the country’s self-reliance drive in telecom manufacturing.

Beyond this order, ITI is also currently executing Bharatnet Phase III projects worth around Rs 7,000 crore for BSNL across Himachal Pradesh, West Bengal, Andaman & Nicobar, Arunachal Pradesh, Nagaland, and Manipur, underlining the scale of state-backed telecom infrastructure work currently on its books.

Financial Snapshot & Business Overview

Founded in 1950 as the country’s first post-independence public sector telecom manufacturer, ITI operates manufacturing units across six locations: Bengaluru, Naini, Raebareli, Mankapur, Srinagar, and Palakkad, supported by an in-house R&D center. 

Its product range spans switching, transmission, access, and subscriber premises equipment, alongside a growing push into defense electronics, GPON, solar equipment, IoT, and e-governance services.

ITI closed FY26 with consolidated sales of Rs 2,184 crore, down sharply from Rs 3,616 crore in FY25, though operating profit turned positive at Rs 44 crore against an operating loss of Rs 60 crore a year earlier. The turnaround was largely driven by exceptional growth in other income (₹503 crore), rather than core operating earnings.

The March 2026 quarter reported revenue of ₹628 crore and a net profit of ₹436 crore, primarily driven by ₹472 crore of other income, while operating profit remained modest at ₹27 crore. 

The company’s order book remains substantial, standing at roughly Rs 18,637 crore, with unbilled revenue of around Rs 2,241 crore expected to convert into billed revenue over the next 12 months, as ongoing project milestones are completed, a factor management has cited in supporting the company’s going-concern position, alongside continued working capital support from consortium banks and backing from the Government of India.

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