Shares of ITI Ltd surged and locked in a 5% upper circuit at ₹323.80 on the NSE on Monday, June 30, 2025, after the company announced that it has received a work order worth ₹1,901 crore from Bharat Sanchar Nigam Ltd (BSNL) under the ambitious BharatNet Phase-II project. The announcement marks a significant development in ITI’s order book, boosting market sentiment and investor confidence in the PSU’s revival strategy.
Key Highlights
✅ Order value: ₹1,901 crore
✅ Project: BharatNet Phase-II (Package C)
✅ Client: BSNL (on behalf of DoT)
✅ Stock movement: Hit 5% upper circuit on June 30
✅ YTD return: Over 142% in 2025 so far
✅ Market cap: ₹35,400 crore (post-surge)
About the BharatNet Order
BSNL issued a purchase order to ITI Ltd for executing the turnkey infrastructure project that aims to provide optical fibre connectivity to 39,000+ gram panchayats across India, as part of the BharatNet Phase-II expansion.
Key Order Features:
- Scope: Supply, trenching, laying, splicing, installation, testing, commissioning of OFC (optical fibre cable)
- Geographies: Uttar Pradesh, Rajasthan, Bihar, West Bengal, and Jharkhand
- Timeline: 24 months from project commencement
- Funding: Government of India, under Universal Service Obligation Fund (USOF)
ITI Stock Performance in 2025 (till June 30)
| Month | Opening Price (₹) | Closing Price (₹) | Monthly Gain (%) |
|---|---|---|---|
| January | 133.45 | 157.80 | +18.2% |
| February | 157.80 | 175.65 | +11.3% |
| March | 175.65 | 191.40 | +8.9% |
| April | 191.40 | 245.60 | +28.3% |
| May | 245.60 | 288.10 | +17.3% |
| June | 288.10 | 323.80 | +12.4% |
| YTD Return | – | – | +142% |
Impact on Financials: How Big is ₹1,901 Crore for ITI?
ITI Ltd’s annual revenue in FY24 stood at ₹2,380 crore, which means this order alone is worth nearly 80% of its previous year’s total turnover.
| Financial Year | Revenue (₹ crore) | Net Profit/Loss (₹ crore) | Order Book (₹ crore) |
|---|---|---|---|
| FY22 | 2,110 | -61.2 | 6,700 |
| FY23 | 2,280 | 17.5 | 8,300 |
| FY24 | 2,380 | 32.7 | 9,150 |
| FY25 (Est.) | 3,800+ | 100+ (Projected) | 11,500+ (Post-BharatNet) |
(Source: Company filings, brokerage estimates)
What Analysts Are Saying
Ravi Singh, VP-Research, ShareIndia:
“The BharatNet order boosts ITI’s order book meaningfully and improves its revenue visibility over the next two years. It signals stronger execution capabilities and government confidence.”
Manoj Dalmia, Proficient Equities:
“If ITI ensures timely execution, it could lead to margin expansion and investor re-rating. The stock could test ₹360–₹375 levels in the short term.”
Understanding BharatNet: India’s Flagship Rural Connectivity Scheme
BharatNet is the world’s largest rural broadband project, aiming to connect over 2.5 lakh gram panchayats with high-speed internet through optical fibre. It is funded by the Universal Service Obligation Fund (USOF) under the Department of Telecommunications.
Project Impact:
- Enables Digital India, e-governance, rural e-health, and education access
- Connects schools, hospitals, public offices in underserved areas
- Reduces digital divide and improves financial inclusion in rural India
Key Competitors Also Involved in BharatNet
| Company | Recent BharatNet Orders (₹ crore) |
|---|---|
| ITI Ltd | 1,901 |
| RailTel Corporation | 1,652 |
| HFCL Ltd | 1,345 |
| L&T | 2,850 |
| Tejas Networks (Tata) | 1,100 |
These companies are involved in various packages across states including Kerala, Maharashtra, Punjab, and Andhra Pradesh.
ITI Ltd: A Turnaround Story in Making?
Once considered a struggling PSU, ITI Ltd is undergoing transformation through:
✅ Project-based revenue model
✅ Revival of telecom manufacturing (optical, 5G gear)
✅ Partnerships with CDOT, Tata Elxsi, and Tejas Networks
✅ PLI scheme participation for telecom and network products
Key Shareholding Structure (As of March 2025)
| Shareholder | Stake (%) |
|---|---|
| President of India (GoI) | 90.0 |
| Public (Retail + HNIs) | 9.1 |
| Institutional Investors | 0.9 |
With only 10% floating stock, low availability often leads to quick price circuits in response to positive developments.
Stock Technicals and Outlook
- RSI (Relative Strength Index): 81 (overbought)
- Support: ₹305
- Resistance: ₹350
Short-Term Target: ₹360–₹375
Medium-Term Target: ₹410–₹425 (post-Q1 results)
Risks and Challenges
| Risk | Impact |
|---|---|
| Project execution delays | Could impact margins, working capital strain |
| PSU dependency | Reliant on central orders, slow decision cycles |
| Competition from private EPCs | May lead to pricing pressure |
| Technology obsolescence | Constant upgrades needed in telecom equipment |
Conclusion
The ₹1,901 crore BharatNet order from BSNL is a game-changing contract for ITI Ltd, reaffirming its position as a key executor in India’s rural telecom infrastructure landscape. With strong stock performance in 2025, robust government support, and a high-impact project in hand, ITI’s turnaround story is gaining momentum. If execution matches expectations, the PSU could see sustained re-rating in the months ahead.
Disclaimer
This article is based on publicly available data, stock exchange filings, and brokerage research as of June 30, 2025. Readers are advised to consult SEBI-registered investment advisors before making any investment decisions. Market investments carry inherent risk.
