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The Investment Trust of India Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤3rd Feb 26

Summary : The Investment Trust of India Limited approved Q3 FY26 results, a strategic demerger of its loan undertaking for enhanced focus and efficiency, and re-appointed its internal auditor, while navigating regulatory changes and subsidiary control shifts.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Standalone Total Expenses: Rs. 542.06 Lakhs (Q3 FY26), Rs. 1,576.04 Lakhs (9M FY26).
  2. Consolidated Total Expenses: Rs. 7,603.60 Lakhs (Q3 FY26), Rs. 21,864.84 Lakhs (9M FY26).
  3. Consolidated Finance costs: Rs. 1,034.22 Lakhs (Q3 FY26), Rs. 3,240.75 Lakhs (9M FY26).
  4. Consolidated Employee benefits expense: Rs. 3,348.55 Lakhs (Q3 FY26), Rs. 9,656.16 Lakhs (9M FY26).
  5. Standalone Revenue from operations: Rs. 258.68 Lakhs (Q3 FY26), Rs. 876.06 Lakhs (9M FY26).
  6. Standalone Other income: Rs. 316.24 Lakhs (Q3 FY26), Rs. 705.17 Lakhs (9M FY26).
  7. Consolidated Revenue from operations: Rs. 8,226.26 Lakhs (Q3 FY26), Rs. 23,141.89 Lakhs (9M FY26).
  8. Consolidated Other income: Rs. 740.95 Lakhs (Q3 FY26), Rs. 1,484.01 Lakhs (9M FY26).
  9. Standalone Paid-up equity share capital: Rs. 5,224.22 Lakhs (Dec 31, 2025).
  10. Consolidated Paid-up equity share capital: Rs. 5,224.22 Lakhs (Dec 31, 2025).
  11. Consolidated Total Segment Assets: Rs. 95,984.65 Lakhs (Dec 31, 2025).
  12. Consolidated Total Segment Liabilities: Rs. 23,145.24 Lakhs (Dec 31, 2025).
  13. Scheme of arrangement for demerger of ITI Credit Limited's loan undertaking and merger with ITI Finance Limited (associate company) was approved as a related party transaction.
  14. Both standalone and consolidated financial results are presented.
  15. Consolidated results include numerous subsidiaries and step-down subsidiaries, and associates.
  16. Subsidiaries include ITI Credit Ltd., ITI Securities Broking Limited, ITI Asset Management Limited, Fortune Management Advisors Limited, Antique Stock Broking Limited, ITI Capital Limited, Distress Asset Specialist Limited, ITI Mutual Fund Trustee Private Limited, ITI Jewel Charter Limited, ITI Gilts Limited, ITI Growth Opportunities LLP, ITI Wealth Management Limited, ITI Alternate Funds Management Limited, ITI Gold Loans Limited (upto Nov 29, 2025), Intime Multi Commodity Company Limited, Antique Stock Broking (IFSC) Limited, Neue Allianz Corporate Services Private Limited.
  17. Associates include ITI Finance Limited and ITI Gold Loans Limited (w.e.f. Nov 30, 2025).

Corporate Overview

  1. Dilution of equity shareholding in ITI Gold Loans Limited from 50.33% to 31.43% by December 30, 2025.
  2. Loss of control over ITI Gold Loans Limited, impacting financial comparability.
  3. Estimated one-time incremental impact on employee benefits due to new Labour Codes.
  4. Financial services, including broking, investment advisory, trading, financing, and asset management.
  5. Involves corporate and MSME loan undertakings.
  6. Strategic focus on enhancing operational efficiency and financial strength through demerger.
  7. Broking and related services
  8. Investment and Advisory services
  9. Trading activities
  10. Financing activities
  11. Asset management activities
  12. Scheme of demerger of 'Corporate and MSME Loan Undertaking' division of ITI Credit Limited (Wholly Owned Subsidiary) and merger with ITI Finance Limited (Associate Company).

Risk Factors

  1. Demerger scheme awaits regulatory approvals.
  2. New Labour Codes impact employee benefits.
  3. Equity dilution in ITI Gold Loans.
  4. Financial results comparability issues.

Key Drivers

  1. Demerger to enhance operational focus.
  2. Improved financial efficiency post-restructuring.
  3. Attracting new investors and partners.
  4. Greater financial strength and flexibility.

Auditor’s Report

  1. Limited review conclusion, not an audit opinion.
  2. Conclusion on standalone and consolidated statements is not modified.
  3. Scheme of arrangement (demerger) of 'Non-lending Business Undertaking' into Distress Asset Specialist Limited, pending various approvals.

Board Commentary

  1. Re-appointment of M/s. MAKK & Co., Chartered Accountants as Internal Auditor for FY 2026-27.
  2. New Labour Codes effective November 21, 2025, resulting in an estimated one-time incremental impact of Rs.15.24 lakhs (standalone) and Rs.256.88 lakhs (group) in employee benefits provision.
  3. Company continues to monitor developments on rules for Labour Codes.
  4. Redemption of 10,050 0% Optionally Convertible Preference Shares (OCPS) on December 30, 2025.
  5. Rs.32.66 Lakhs transferred to a separate bank account for pending settlement of OCPS claims.

Corporate Governance

  1. Audit Committee reviewed and recommended financial results and demerger scheme.

Management Discussion & Analysis

Future Strategy

  1. Demerger to separate Corporate and MSME Loan Undertaking for independent growth and expansion.
  2. Focus on enhancing financial strength, flexibility, and access to funds for both entities.

Operational Focus Areas

  1. Facilitate independent growth and expansion of segregated business verticals.
  2. Enhance operational efficiency across entities.
  3. Attract investors, strategic partners, lenders, and other stakeholders.

Performance Drivers

  1. Strategic demerger to achieve improved operational focus and enhanced financial efficiency.
  2. Optimal utilization of resources post-demerger.
  3. Ability to independently attract investors, strategic partners, and lenders for segregated business verticals.

Risk Control Measures

  1. Demerger expected to provide greater financial strength and flexibility.
  2. Continuous monitoring of new Labour Code developments and impact assessment.

Critical Risks

  1. Demerger scheme subject to various regulatory approvals.
  2. Impact of new Labour Codes on employee benefits liability.
  3. Comparability issues in financial results due to loss of subsidiary control.