RAILTEL CORP OF INDIA LTD (NSE: RAILTEL) Q1 2026 Earnings Call dated Jul. 29, 2025
Corporate Participants:
Unidentified Speaker
Sanjai Kumar — Chairman & Managing Director
V Rama Manohara Rao — Director, Finance
Analysts:
Unidentified Participant
Vishal Periwal — Analyst
Karan Sanwal — Analyst
Mohit Mishra — Analyst
Parimal Mithani — Analyst
Rakesh Roy — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the post result Q1FY26 earnings conference call of Railtail Corporation of India Limited hosted by Antec Stockbroking. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing start then zero on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Vishal Perival from Antec Stoke Broking. Thank you. And over to you sir.
Vishal Periwal — Analyst
Yeah, thanks Anushka. And I welcome all the participants and from investors and analyst community for the post result earnings call of Railtel Corporation of India Limited. And I also like to thank the management for giving us this opportunity. And the management team from Railtel is led by Sanjay Kumar sir who is the Chairman and Managing Director, who is the Director of Finance and Yashwa Singh Thomas, Director Network Planning and Marketing. And apart from that there are other members from the team also have joined the management. As usual we’ll have a brief from the management on the gone by quarter.
And then we’ll have a Q and a session from the participants. Yeah. Thank you. And over to you, Sanjay sir.
Sanjai Kumar — Chairman & Managing Director
Thank you, Vishalji. Very good morning to all. It gives me great pleasure to interact with you on the company’s performance in the backdrop of Q1 financial results of FY26 which were declared by the company on 28th July 2025. The company had a strong start to our financial year 2025. 26. Having achieved operating revenue of rupees 744 crores in Q1 of FY26 as against rupees 558 crore in Q1 of FY25. Registering the YoY growth of 33%. The telecom segment contributed Rs. 335 crores and project segment contributed to Rs. 409 crores in the company’s operating turnover. As regards the total revenue, the year on year growth is rupees 31 with rupees 758 crores in Q1 of FY25 as compared to rupees 578 crores in Q1 of FY 25.
The profit before tax. Sorry, there is a correction. 758 crore in Q1 of FY26 as compared to 578 crores in Q1of FY25. The profit before tax. Pvt. In Q1 of FY26 is rupees 89 crores as against Rs. 67 crores. In Q1 of FY25 registering a gross YoY growth of 34%. The profit after tax in Q1 of FY26 is rupee 66 crores as against Rs. 49 crore. In Q1 of FY25, registering year on year growth of 36%. Earning per share in Q1 of FY26 stands at rupees 2.06 as against rupees 1.52 of Q1 in FY25, registering a year on year growth of 36%.
Order booking during quarter ending 362025 was to the tune of rupees 721 crores as against total order booked during Q1 of FY24. 25 of rupees 218 crores. The company has robust order book position of rupees 7197 crores as on date. Out of this, close to 500 crores are related to Kavaj projects. I am happy to Inform you that cab has offered nil comments on annual financial results of FY 2425. We remain committed to pursuing growth and creating value for our esteemed investors. We are also exploring opportunities in order to realize our true potential. I thank you for your trust and collective vision for the future of this company.
Thank you. Jai Hind.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR in one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. I would like to request participants that you may press star N1 in order to ask a question. A reminder to the participants that you may press star N1 to ask a question.
We take the first question from the line of Vishal Perival from Antique Stock Broking. Please proceed.
Vishal Periwal
Yes, thanks for the opportunity. Before the question queue assembled, I just thought to maybe like you know, ask a few questions first. I think sir, we have done pretty strong set of starts for this particular year. Doing healthy 30% plus kind of revenue growth and how exactly you are seeing things for the full year. I think we are already there like you know, one more month in the quarter two. So how things are and for the full year how do you see things and any color that can be provided. So.
Sanjai Kumar
So if we talk of revenue overall year we would take somewhere around 25% growth. If we take overall year since the base number is growing, so the overall growth I would take around 25%.
Vishal Periwal
Right sir. Thanks sir. And usually we have already also we have said that it will be more like a single digit for the projects, single digits for the telecom and I double digit for the project. So the same thing is expected to continue.
Sanjai Kumar
Yes, telecom again telecom market is not I would say in India. It has been a characteristic of Indian telecom market. So telecom market growth is going to remain stunted. But the biggest advantage which I always repeat, we being in the ICT and IT domain. Telecom market acts as a catalyst for many of our project business income. So I won’t say that it is not important directly. It may not be contributing. It might not be seen directly to contributing to the top line. But this being part of our portfolio certainly assists and helps us in getting many IT technology.
Vishal Periwal
Got it sir, Got it. And then in terms of our order inflow, we have seen decent set of inflow. So. So in any particular sector which is driving it, that is number one and second, any green shoots or any emerging sector that you are seeing could drive our order inflow in times to come.
Sanjai Kumar
See, we have started gaining momentum in getting railway projects recent quarters. And so we see that now we are getting, we started slow but now we are getting good number of projects from railway tenders. Of course those are not nominations so you must have must have seen that recently we got another Kavach order also so and few tunnel communication process already there with us some signaling, auto signaling and already we are doing so. That is one sector where we are working and many state government projects where we have been strong since beginning, we are getting good orders even now some smart city projects may come to us.
Similarly another third front is that international business. We have started a very small beginning and we hope that in the years to come our international business which will include not only IT and ICT telecom but railways also is likely to be part of that. But it will take time because we are starting and starting international business requests. I think different kind of efforts and energy. So we are gaining experience in that.
Vishal Periwal
Right sir? Right sir. So the key, key takeaway is. I mean what I could gather is the railway order as a sector which was bit muted in. In maybe six months back. So things are kind of picking up there and within that covert in plus signaling is something which is driving the traction. That. That’s a fair to understand.
Sanjai Kumar
Yes. At Least in the short term I can say yes.
Vishal Periwal
Got it. Okay. And in terms of pipeline on Kavach front, anything that you see here from the ministry that like, you know, they want to award orders to this extent at least for next six months or 12 months, anything from that front.
Sanjai Kumar
Sir, this is very difficult for us as a bidder, as a service provider, it is very difficult for us. But these tenders are being floated by different zonal railways and units and they are coming out with standards as and when. I think now, apart from tenders, there’s focus on delivery also implementation also. So implementation also has to pick up.
Vishal Periwal
Right? Got it, sir. So sir, I’ll come back in the queue for more. Thanks for all answering all the questions.
operator
Thank you. The next question is from the line of Karan Stanwal from New Shai. Please proceed.
Karan Sanwal
Hello. Hope I’m audible.
Sanjai Kumar
Yeah,
Karan Sanwal
yeah, thanks for the opportunity and congratulation on good set of numbers which start to the. I have a couple of questions regarding coverage which the previous participant also touched upon. So you said you have already highlighted that we have already won two orders for coverage. So I wanted to understand like how is the execution on that part, what are the timelines for execution and are we, you know, starting to do the groundwork right now or is it will be done maybe few quarters down the line? If you could highlight.
Sanjai Kumar
These projects are of course engineering intensive and you have to work along the track every kilometer. So these will be going up to say 27, 20, 27, 26, 27. Mostly the executions will happen and some part of it may also be there in 27, 28 as well. These are long term project existence and timeline 18 to 20, 2018 to 24 months.
Karan Sanwal
So you’re talking about the execution order we have already won, right?
Sanjai Kumar
Yeah, we’re talking about that already. Yes.
Karan Sanwal
And have we bidded for other coverage projects lately or are we expecting any, you know, bid results maybe 1, 2 quarter down the line.
Sanjai Kumar
So we, we have already, there are a few tenders where we have participated bids and wherever these bids are coming, there’s no question that we will not bid and we’ll, we’ll certainly try to win.
Karan Sanwal
Understood. And also has the. So we have already tied up with the OM partner, so wanted to understand how is the conversation with those partners, like have they received a certificate to execute coverage orders or how is that timeline over there? If you could highlight something on that part.
Sanjai Kumar
Those certifications are of course lengthy and very, very detailed because it is related to safety and right now we see that we Are going in the right, at the right pace, in the right direction. And therefore we don’t see any challenge on that front. But certification is yet to happen. It is underway. But there’s a lot of field work is required which is going to take time. Like laying off cables, say about thousand kilometers of cable. Many towers have to be erected, many drawings and those have to be approved with the railway. So that work is going to take time.
So this certification will not substantially going to. Is not going to affect our actual progress. This will happen in parallel.
Karan Sanwal
So maybe so our scope of work may already have been started in some sort of way or.
Sanjai Kumar
Yes, they all started on fee.
Karan Sanwal
Okay. And also, what is the approximate proportion of revenue of those project flowing towards? Maybe an approximate percentage. If you could highlight.
Sanjai Kumar
I told you those are close to 500 crores exact figures. I don’t remember both the coverage orders put together. So that is what this year we might clock some revenue. But majority of revenue should come next year from these projects.
Karan Sanwal
One last question. So we. From what we understand, we record the entire revenue of coverage and then maybe a proportion of expenses that is subcontracted is highlighted in the expense portion, right? Or we only record our. Our portion of revenue.
Sanjai Kumar
No, no, this is. This is total revenue.
Karan Sanwal
Okay, understood. So we would be adding the subcontracting charges to the OEM for the equipment that they provide. Is what.
Sanjai Kumar
Everything order includes complete supply chain,
Karan Sanwal
Correct? Correct. So our portion would be around 60, 70%, maybe 50. 60% of the revenue of those orders.
Sanjai Kumar
No, no. Revenue is completely with us. It is going to add to our turnover only.
Karan Sanwal
Okay, understood. Understood.
Sanjai Kumar
Yeah, yeah, yeah.
Karan Sanwal
And thanks for answering multiplies.
operator
Thank you. Before we proceed with the next question, I would like to remind participants that you may press star in one in order to ask a question. The next question is from the line of Mohit Mishra from ICICI Securities. Please proceed.
Mohit Mishra
Hi sir, am I audible?
Sanjai Kumar
Yeah.
Mohit Mishra
Sir, I had a couple of small questions. Can you in the telecom services, can you give the breakup of nld, ISP and IP revenue for the quarter?
Sanjai Kumar
Yeah, sure. So we talk of NLD. It is 151crore. ISP is 108crores which includes about 83crores from rail wire and 24crore from IP1. And remaining about 51crore. Sorry, could you repeat the 1crore. 108crores.
Mohit Mishra
Okay, okay.
Sanjai Kumar
And about 51crores is from data center related business.
Mohit Mishra
Okay, sir, got it. And secondly, sir, I’m sorry but I invest the order book number in your opening remarks. Would you please repeat that number?
Sanjai Kumar
Order book number is 7197.
Mohit Mishra
And what percentage of that would be.
Sanjai Kumar
Sorry.
Mohit Mishra
Okay. What percentage of that would be from the railways?
Sanjai Kumar
It is around 30, 31%.
Mohit Mishra
Okay. Since. Thank you so much for answering my question. Thank you.
operator
Thank you. Ladies and gentlemen, in order to ask a question please press star n1. I would like to remind participants that you may press star in one. The next question is from the line of Vishal Perival from Antique stockbroking. Please proceed.
Vishal Periwal
Yes sir.
Sanjai Kumar
Your voice is not audible. Vishalji.
Vishal Periwal
Yeah. Is this better now?
Sanjai Kumar
Yeah. Yeah.
Vishal Periwal
So on ECL usually we do provisions in our P and L. So any. Anything that we have done for quarter one of this year. Sir.
Sanjai Kumar
There is a
V Rama Manohara Rao
small reversal.
Sanjai Kumar
Yeah, there’s reversal in this quarter. 3 crores I think.
Vishal Periwal
Yes. Okay, got it. So there is no. Any. Any one off. No major one off there. It’s numbers are recurring in sort of nature.
Sanjai Kumar
Yeah,
Vishal Periwal
got it. And I mean sir, order book which you mentioned what will be the share of coverage in this the 7200 odd crore order book.
Sanjai Kumar
That numbers I’ll have to find out. It’s close to 500 crores.
Vishal Periwal
Okay. Okay. Okay. Usually sir, like you know in the previous presentation we have given a further breakup of order book. Then they’ll be
Sanjai Kumar
your voice. Can you please repeat? See.
Vishal Periwal
Yeah. Is this better now?
Sanjai Kumar
Yeah,
Vishal Periwal
yeah. Sorry. Sorry for that audio. In our previous presentation we have given breakup of the order book that is between railways and other sectors. So if one has to understand from a margin profile point of view which segment give us the highest margin and then maybe like you know, which is kind of where the competition is pretty high which gives a low margin. So can you give some color on that order book profile from a margin point of view?
Sanjai Kumar
I can give some clue. Whatever I have understanding. So railway project similarly they are good margin projects with us. But otherwise in general it projects margins are really very difficult to have. We are certainly this quarter we have slightly bettered ourselves, made our position better. We have I think 5.28% margin in project. Otherwise, generally 4 to 5% is the margin. If we talk of sector specific it is not. It is very difficult to figure out one action sector against the other sector. So it is mix I would say.
Vishal Periwal
Okay. Okay, got it. And then typically I think from a number of players who are bidding say in Indian railway project and then ict what will be the difference? Sir, how many players bid in that railway projects and how many in the taict typical project?
Sanjai Kumar
Sir, again this is factor to sector.
V Rama Manohara Rao
If I, if I can add. I think it’s very difficult to generalize that way Vishalji. It all depends upon the project and its. I mean various other aspects and location in which the project is how tough it is. So there are many other parameters on which the competition prevails.
Vishal Periwal
Got it sir, got it. And in terms of data centers I think one is like, you know, I mean like any time in coming months and quarter can we have a separate line segment in our telecom just to see how the traction that is one. And second, I mean can you give some color where we are right now? Any targets or plan that we have one for our own data center and second is the edge that is there. Edge data center, sir.
Sanjai Kumar
So if you talk of data center so data center related income we are certainly growing comfortably around 15 to 20% we take overall. But there are one offs also which might because numbers are small we are growing in this segment. So that is why we have not created a separate line segment. Now once it becomes substantial number certainly we will make it. Now if we talk of edge data centers. So edge data centers, yes, we should cross some numbers this year. I think last conference I told you around 10 crores. And so I stay with that number as we talk of edge data center.
Vishal Periwal
Okay, okay. And in terms of our own data center sir, what is the capacity right now and how do you see this going in this year and next year? Any plan around that?
Sanjai Kumar
So our own data center which is see even these data centers are our own data centers. There’s only. It is not. I would say this is not debt per se but they are not the technology partners. The ownership of these data centers remain with us. Turnover is also coming to us. These data centers are required because those existing data centers are almost working at the close to capacity. So that is why we require this. We are also likely to start something with third party data centers only as far as passive infra. So that line of segment is also likely to start this financial year.
As you know that we have made some MOUs with third party data center infra service. Only passive infra services will be taken from them. So data center we see that this year is going to be really. I would say we would be embarking on a new journey and next financial year these results would be certainly visible.
Vishal Periwal
Right, right. And so if one understand so one is the edge data center where I mean like you know we have a revenue share sort of model and then there is another, I mean will the model be similar to Revenue share or, or how exactly it is structured that so.
Sanjai Kumar
It won’t be appropriate to share all those models because we are flexible. Whatever suits to the benefit of Realtel, we will have that flexibility. It may be revenue share, it may be leasing passive infra from them depending upon the circumstances and the, and the need of the project which we would be doing.
Vishal Periwal
Okay, okay. Okay.
Sanjai Kumar
We are not going to stick with one single line of.
Vishal Periwal
Got it, sir. And in terms of megawatt, any plans that we have, sir, I mean like in terms of what would make a.
Sanjai Kumar
Data center which we have work is started already. Noida data center. That is, that is going to be ultimately to begin with, we will have 5 megawatt in next two years and then later on we will upgrade it to 10 megawatt. Okay?
Vishal Periwal
Okay. Got it, sir.
Sanjai Kumar
Yeah.
Vishal Periwal
Okay. And in terms of edge data center, sir, in any megawatt target.
Sanjai Kumar
Data centers will be smaller. One say around 1, 2 kilowatt, 0.2 megawatts. Sorry. And this year we might see maybe four or maybe five data centers. We should be able to begin.
Vishal Periwal
Okay, got it. And maybe one last thing, sir. In terms of our capex plan, what. How do you see what we have done in this quarter and how do you see the full year and third maybe parallel to that like you know where exactly we are doing this capex? Which segment we are doing this? Yeah, that’s all from my side.
Sanjai Kumar
This quarter we have done around 66 crores and we have planned already for 350 crores kind of capex for whole of the year.
Vishal Periwal
And then which, which segment we are. We are doing the capex mostly it.
Sanjai Kumar
Is going to data center and telecom. But there would be some smaller numbers like power plan, optical fiber, maybe some software. Generally it is data center and telecom.
Vishal Periwal
Okay. And if one has to understand in terms of the maintenance and visa vis where we are adding capacity. So how this split will be, sir, in the annual capex.
Sanjai Kumar
Maintenance will never come to capac. It is part of revenue expenditure. Maintenance is never part of capacity.
Vishal Periwal
Okay, okay. Sure, sir. I’ll. I’ll come back in the queue. Thank you.
operator
Thank you. The next question is from the line of Perimal Bitani from Credential Investments. Please proceed.
Parimal Mithani
Thank you. Thanks for the opportunity, sir. I just wanted to know the guidance for the year. If you can just tell us.
Sanjai Kumar
So it will be somewhere around 25% for the whole of the year.
Parimal Mithani
Okay. And will be maintaining the same margin. Sir, for the year. Like
Sanjai Kumar
if we talk of margin range overall this thing so it will be around 11 to 12%.
Parimal Mithani
Okay, thank you. Thanks.
operator
Thank you. The next question is from the line of Rakesh Roy from Boring amc. Please proceed.
Rakesh Roy
Yeah. Morning sir. My first question regarding a 500cr cover, sir. So this order will execute by sir. Del only or you have any JB or any other. Any other company to execute this order.
Sanjai Kumar
There is no JV as such. But there are of course partners.
Rakesh Roy
Okay. Yes.
Sanjai Kumar
OEM is a partner and then there’ll be partners who will do the field activities like cable laying and power erection.
Rakesh Roy
Okay. Okay. Right. Can you say the name of any company? This is last time I was reading one company is a future in tech. They are heavily with your company to execute coverage order. So can you highlight on this one?
Sanjai Kumar
They are our OEM of coverage equipment Quadrant future test. You are right.
Rakesh Roy
Okay.
Sanjai Kumar
And we have.
Rakesh Roy
Okay. And last just you mentioned it takes time to get certification. So what type of certification take time and how much is generally takes?
Sanjai Kumar
I think you missed it. I have already answered this question very much. This certification is done by Railway organization because this is a safety item and this is being deployed for the first time. This kind of equipment is indigenously developed by Indian company. And so once it is approved then it will not require a free time. Then afterwards it will require only inspections. So that process is going on for all companies. It is not only our partner company but it is for all five OEMs who one has already got that is SPL but four others are under approval.
Yeah.
Rakesh Roy
Okay. Right sir. And system is developed by in house, by retail or houses.
Sanjai Kumar
So it has been developed by Railway is a unique organization known as RDSO in collaboration with industry. So Raisedel has not done anything to any contribution to this product development.
Rakesh Roy
Okay. Okay.
operator
Thank you. A reminder to the participants that you may press Star in one to ask a question on their touchstone telephone. The next question is from the line of Karan Sanwal from Nivar. Shai, please proceed.
Karan Sanwal
Do we have this exclusive tie up only with Quadrant that you just made? Or would we be open to tie up with other OEMs for exhibition of God?
Sanjai Kumar
The execution is a separate activity as far as OEM for the supply of covered projects. Quadrant is our exclusive partner. Execution is being done by various other partners. Yeah.
operator
Thank you. A final reminder to the participants in order to ask a question please press Star in one as there are no further questions from the participants. Thank you members of the management. Thank you everyone for joining on behalf of Anti Stockbroking Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.
Sanjai Kumar
Thank you very much.