RAILTEL CORP OF INDIA LTD (NSE: RAILTEL) Q3 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Sanjai Kumar — Chairman and Managing Director
Analysts:
Vishal Periwal — Analyst
Sanjesh Jain — Analyst
Viraj Mithani — Analyst
Presentation:
operator
Foreign. Ladies and gentlemen, good day and welcome to the post result earnings call of Railtail Corporation of India Limited hosted by PL Capital. 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 this conference call, please signal an operator by pressing PIN zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vishal Pariwal from PL Capital. Thank you. And over to you sir.
Vishal Periwal — Analyst
Yeah. Thanks Supnali. And good morning everyone and welcome to the analyst interaction with the management of Railtel Corporation. From the management team of Railtel we have with us Mr. Sanjay Kumarji who is Chairman and Managing Director. Mr. V. Rama Manoar Raoji who is Director Finance. Mr. Manoj Kandanji who is director Projects Operation and Maintenance. And along with him is Mr. Yashpal Singh Tomarji who is director Network Planning and Marketing. So I think results is already published and I think we can have a brief from the management on the gone by quarter or any other commentary.
And then we’ll have lines open for Q and A. Yeah. Thank you. And over to you Sanjay sir.
Sanjai Kumar — Chairman and Managing Director
Yeah. So very good morning to everybody. It gives me a great pleasure to interact with you on the company’s performance in the backdrop of Q3. Financial results for FY26 which were declared by the company on 2nd February 2026. The company achieved or operating revenue of Rs. 913 crore in quarter 3 of FY26 as against rupees 768 crores in Q3 of FY25 registering the year on year growth of 19%. The telecom segment contributed rupees 349 crores and project segment contributed Rs. 564 crores. Companies operating turnover. The profit before tax in Q3 FY26 is slightly lower as compared to PBT in Q3 FY25.
Due to execution of slightly more number of low margin projects in this quarter. However, company is confident to achieve the overall revenue and profit as per the previous projections. The company achieved the total income of Rs. 2,648 crores during previous nine months period ended on the 31st 122025 registering 19% year on year growth. The profit before tax in nine months period ended on December 25th is rupees 280 crore as against Rs. 251 crores in corresponding period of previous year registering A year on year growth of 12% earning per share in nine months. Period ended on December 25 stands at rupees 6.37 as against rupees 5.81 of nine months.
Period ended on December 24 registering a year on year growth of 10%. The company’s order book is robust at rupees 8,497 crore which will give us required thrust for future growth. Thank you very much.
operator
Should we start the question and answer session?
Sanjai Kumar — Chairman and Managing Director
Yes, please.
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 and one on the 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. We have the first question from the line of Sancheesh Jain from ICICI Securities. Please go ahead.
Sanjesh Jain
Good afternoon sir. Thanks for opportunity. I got few questions. First on the bookkeeping side, can you give us a revenue breakup for the three segments within telecom business?
Sanjai Kumar
So we have. Right now we have two. Two segments.
Sanjesh Jain
Okay.
Sanjai Kumar
Telecom and project.
Sanjesh Jain
Hello. No, no. Within telecom, nld, isp and ip1.
Sanjai Kumar
Okay, okay. Okay. Okay. Didn’t tell it right. So it is rupees 155 crore from NLD, 113 crore from ISP and 25 crore from IP1. This is the breakup of core telecom income. Other than telecom income we have ICT revenue of 54 crore which includes data center and other income and other operating income of 3 crore. So total put together is 350 crore.
Sanjesh Jain
That’s very clear. Sir, just one question on the telecom business particularly now this year has appears to be slightly weaker than earlier what we thought from the revenue growth perspective. And this quarter again appears to be 1 lower at 3 odd percent kind of a growth in the telecom business. How should we see this growth panning out for next year? And what really is causing this slowness in the telecom business?
Sanjai Kumar
See. Yes. So basically in telecom market there have been. I would say that there have been constant pressure on pricing. That was one major reason for I would say dampened growth team. But then due to our continuous efforts as I told during previous quarterly meeting discussions, interaction with investors also that we have increased our focus on telecom also. And those efforts have now started showing results. So I believe that in coming quarters maybe, maybe may not be Q4 but at least from quarters in the next financial year we will start seeing results in telecom sector Also but yes, right now whatever you said is truth.
In nine months, if you see overall there has been 5% growth. But we, based on what I said right now that we have now tried to find out how can we increase our telecom income and we have accordingly increased our efforts and those efforts will certainly bring dividends and we should be able to maintain our growth guidance in telecom income in 8 to 9% of range.
Sanjesh Jain
Got it? And can you brief us what efforts are we doing in terms of accelerating the telecom revenue?
Sanjai Kumar
Yes, so see one is we have to listen to the market call that you have to reduce your tariffs somewhere. We were earlier not ready to reduce tariffs beyond a certain limit. But then for that we need to increase the network capacity and all that. And I believe we as a management think that this will certainly have impact on our strategy. So we are concentrating on NLD traffic which is actually have been generally mute. Rail wire segment is continuously under pressure, margins are getting thin. But we are getting now momentum in growth in numbers also subscriber numbers.
If we see right now we have increased, we are closing inching towards 6 lakh subscribers. So Railwire also we believe that we will make some impact but our focus is mainly on NLD business.
Sanjesh Jain
Got it? Got it. And for this do we need to do more capex to increase the capacity on the fiber? Because generally we have been doing capex.
Sanjai Kumar
Equivalent to the capex was already underway and we were only to increase the line cards and all that. So that does not matter much. But we were already underway preparing for this. That’s why some time has taken and you must have seen that we have already done a lot of capex during last two years in our telecom network.
Sanjesh Jain
And within the telecom we also thought this data center what we have done deal with techno that would also start contributing. Is there any delay in that contribution as well?
Sanjai Kumar
See the data center which is major contributor, which is supposed to be major contributor is likely to be ready by March 27th because that is under construction. But yes, we have started smaller scale activities in EDGE data centers at two, three locations like in Gurgaon in Mumbai and one is also now ready for starting work in Indore. Those will be small ones and there we should get business numbers. Apart from that, our agreements with the Anant Raj and other like TCs and the likes there also we are finding some traction and we should get numbers in the next financial year from these activities.
Sanjesh Jain
Next on the project business, any new deal wins in the Kavach Railway project and deployment of 4G 5G.
Sanjai Kumar
Seen in deployment of Kavach 1 tender we have already participated and results of that tender is yet to be declared. But otherwise there is a status quo as far as the poor received is concerned. We already have two older orders which are in East Central Railway amounting to total rupees 468 crores. And work is going on at site against these two orders. But one tender is still undecided. We are waiting for the results to come.
Sanjesh Jain
And deployment of telecom services, towers and all. Anything anything on that.
Sanjai Kumar
That is part of the Kabach order.
Sanjesh Jain
Okay.
Sanjai Kumar
That is part of the. So was and all that thing. Erection of towers is already happening.
Sanjesh Jain
Okay. Okay. So now coming to the guidance, you said that this year you. You still believe that you can do the guided number which was around 20% growth at the top line and at the bottom line for the nine months at least it doesn’t look like we are on track. What gives us a confidence that for the full year we should be able to able to do a 20% growth should be Q4 be much stronger for us.
Sanjai Kumar
See if you see even previous years also Q4 generally has been heaviest of the all four quarters. And Q3 has been slightly muted. Q2 and Q4 are the numbers bringing quarters. So Q4 certainly is going to be better. But if you. Because if you see the 9 months overall number, you will find a trend also 9 months put together Q4 is certainly going to make it. Whatever trend has been going from last two, three years Q3 is going to be heavier.
Sanjesh Jain
Got it, got it. But generally Q4 is heavy. So it will come on a high base. But to achieve a 20% growth for the full year, we need to do a significantly higher in the Q4.
Sanjai Kumar
Yes, certainly. Yes.
Sanjesh Jain
Okay, just one last question. To understand the project business margin, it has been quite volatile, right? Ranging from a decently 6, 7% margin earlier now to consistently doing 3% 4%. Do you think there is a reset in the margin and the new margin should be anywhere between 4 and 5% in the expectation for us?
Sanjai Kumar
I think as far as I remember, I’ve been maintaining margin in 4 to 5% few quarters interruption. Yes, I have been increase the volume. Certainly all the works. You’re not going to get in higher margin. We though actually we have changed slightly change our strategy also because many times you have to add value to the product project. You should sometimes take a call. Sometimes you need to enter a new sector. You have to take a call Sometimes there’s a very fast turnaround in a project so that your cash Flows are supported. You have to take a call.
So those, all those factors certainly matter.
Sanjesh Jain
Got it.
Sanjai Kumar
But yeah, this one.
Sanjesh Jain
But this is a new normal right now.
Sanjai Kumar
Yes, got it.
Sanjesh Jain
Sir. That’s very helpful. And for the coming quarters.
operator
Thank you. A reminder to all the participants, you may press star and one to ask a question. A reminder to all the participants, you may press star and one to ask a question. We have the next question from the line of Viraj Mitani, Jupiter Financial. Please go ahead.
Viraj Mithani
Thank you for the opportunity. So my question is how are we going to be benefiting from this recent budget proposal of announcement for increase in safety of railways?
Sanjai Kumar
Your voice is not very clear.
Viraj Mithani
Am I clear now? Is it clear?
Sanjai Kumar
Better. Better.
Viraj Mithani
Yeah. So my question is how are you going to benefit from this budget proposal on safety equipment on this railway safety. So what are the avenues for us in this sector?
Sanjai Kumar
The budget is just now presented. So we are also observing what finer details come out. And I think it will be appropriate only after those deliberations happen and we get the finer details to react on to that.
Viraj Mithani
And sir, would be your guidance for this coming this year would be. The next year would be FY 2027.
Sanjai Kumar
2020%.
Viraj Mithani
On the sales side and the margin side. Net margins would be in range of 7%.
Sanjai Kumar
Net margins. Yes. It you are talking of project margin or you’re talking of overall margin?
Viraj Mithani
Overall margins.
Sanjai Kumar
Overall margin should be 10 to 11% a bit. I’m talking about.
Viraj Mithani
So net would be 5% around, right?
Sanjai Kumar
No, I didn’t say that. Project will be in the range of 4 to 5%. Telecom is going to be there in the range of 2021%. So overall will be somewhere around 10 to 11%. Is that clear?
Viraj Mithani
Yes. Yes sir. Thank you.
operator
Thank you. A reminder to all the participants, you may press star and one to ask a question. We have the next question from the line of Vishal Parival from PL Capital. Please go ahead.
Vishal Periwal
Yes sir. Thanks for the opportunity. Sir, in terms of the telecom services you mentioned others data center revenue crore this year. So same period last year this number could have been how much.
Sanjai Kumar
Last year?
Vishal Periwal
Yes sir,
Sanjai Kumar
last year it was 51 crore. Data center. Yeah, ICT others and data center put together others was 18 crore last year. This year it is 15 crore.
Vishal Periwal
Okay. Okay, got it. And similarly sir, in terms of project services also can you give a breakup of Indian railway and others in the revenue.
Sanjai Kumar
So railway projects if we talk of it is 112 crore this quarter and other than railways is 452 crores.
Vishal Periwal
Okay. And sorry so similarly from the same period last year.
Sanjai Kumar
So last year for the same period it was 123crores from railway project. Project. And other than railway projects it was 307 crores.
Vishal Periwal
Okay. Got it. Got it. And the the project order book that is there. So in terms of railway and non railway. Can you also provide it?
Sanjai Kumar
Just a minute. I have this. So railway projects order book if I talk of it is around 1000 crore is from railway stream. And then other than railways 5511 project. So 5000 is non railway and 1000 close to 1000 is railway. I’m talking of project income only does not include.
Vishal Periwal
Yeah.
Sanjai Kumar
Telecom.
Sanjai Kumar
Okay. Okay. So that fair to say. I think we mentioned order book of in the range of 8000 odd crore. So. So 10. And the meaning is telecom.
Sanjai Kumar
Yeah. So there’s telecom income. There is railway signaling projects we have. I would say I think so if we count signaling projects also. So it is 17 and 8 put together. And telecom is around 400 plus crores from railways. And other than railways also there is telecom. So all put together is 8,400 plus.
Vishal Periwal
Okay, okay, okay. But. But so generally when we do a breakup Railway non railway. So telecom is a part of railway. We consider that. Right.
Sanjai Kumar
See it. These are all basically bifurcations. Whatever way you want you can. So project income and telecom income. These are the two scenarios within the telecom. We generally do not bifurcate into railway. Telecom and. And other than telecom that is not the normal. Normally we are not taking this way. We are only bifurcating projects. Railway and non railway.
Vishal Periwal
Got it sir. Got it. Got it. Yeah. I think that that’s pretty much from my side, sir. Come back in the queue.
operator
Thank you. A reminder to all the participants. You may press star and one to ask a question. Participants if you wish to ask a question please press star in one. We have the next follow up question from the line of Viraj Matani from Jupyter financial. Please go ahead. Yeah.
Viraj Mithani
Am I audible sir?
Sanjai Kumar
Yes please.
Viraj Mithani
Sir, recently you got some school order. What was that? Can you just give some details of it? This is cancelled again. But what is our scope in that area would be. Yeah, yeah.
Sanjai Kumar
So you are talking about cancelled order. You are talking about new order, new.
Viraj Mithani
Order and cancer board. Br. We got some school order.
Sanjai Kumar
There are some. They are basically education in Bihar. They are working on many fronts. So they are setting up new laboratories in schools. So one project is related to laboratories setting up of physics, chemistry and biology. Biology laboratories. So that is the. That is staying and we are working already. Work is in progress. The other one is basically around smart class. That was around about smart class. We really don’t know reason behind the cancellation. It’s because of their own internal decision. But so we and we have not been told also but they have withdrawn the those orders.
Viraj Mithani
And so what is your would be your margins in this world class business? Would be. It will be any what kind of.
Sanjai Kumar
Margin of 44 to 5% only. Okay.
Viraj Mithani
And so we had some hospital project also which was done on pilot visas. Is there any sopress Hospital management?
Sanjai Kumar
Which one.
Viraj Mithani
Management Hospital management project sometimes ago on a pilot basis.
Sanjai Kumar
Hospital management for whom on a pilot.
Viraj Mithani
Business Government hospital was done some years ago.
Sanjai Kumar
So no, no. We have. We have rolled out a very huge hospital management information system for Indian Railways. There are more than 700 hospitals and dispensaries Railway dispensary where we have already rolled out four, five years back. Recently we have completed for Brihan Mumbai Corporation also which is also a very sizable good amount value of work for again for the same HMIs. So we have. I don’t remember any POC you are talking of. I just don’t really.
Viraj Mithani
It’s the same project maybe you’re talking about which you’re talking.
Sanjai Kumar
Okay. But those are full fledged projects. They are not POC and they are marginality.
Viraj Mithani
Right?
Sanjai Kumar
Yeah. Yeah.
Viraj Mithani
Thank you. And all the best.
Sanjai Kumar
Thank you.
operator
Thank you. A final reminder to all the participants. You may press and one to ask a question. Thank you very much. As there are no further questions from the participants we would conclude the call now on behalf of PL Capital. That concludes this concept. Thank you for joining with us today. And you may now disconnect your lines.
Sanjai Kumar
Thank you.
operator
Thank you very much everyone.