RailTel was incorporated in 2000, with the objective of creating nationwide broadband and VPN services, telecom, and multimedia network, to modernize the train control operation and safety system of Indian Railways. It is a “Navratna” PSU of the Government of India. At present, RailTel’s network passes through around 6,000 stations across the country, covering all major commercial centers. Presenting below are its Q1 FY26 earnings results.
Q1 FY26 Earnings Results
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Revenue from Operations: ₹743.81 crores, up 33.3% YoY from ₹558.11 crores in Q1 FY25.
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Total Income: ₹758 crores.
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Profit Before Tax (PBT): ₹89.31 crores, up 33.7% YoY from ₹66.78 crores.
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Profit After Tax (PAT): ₹66.10 crores, up 34.6% YoY from ₹48.67 crores in Q1 FY25.
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EPS: ₹2.06, compared to ₹1.52 in Q1 FY25.
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EBITDA: ₹116 crores, up 11.5% YoY from ₹104 crores.
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EBITDA Margin: 15.6%, down from 18.6% in Q1 FY25, indicating margin pressure despite topline growth.
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Segment Revenue:
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Project Work Services: ₹409.05 crores, up 77.6% YoY.
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Telecom Services: ₹334.76 crores, up 2.1% YoY.
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Total Expenses: ₹673 crores, up 36.2% YoY from ₹493.26 crores.
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Project-related expenses: ₹387.45 crores, up 75.5% YoY.
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License fees to DoT: ₹21.69 crores.
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Employee Benefits: ₹56.51 crores.
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Finance costs: ₹0.58 crores, down 40% YoY.
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Management Commentary & Strategic Decisions
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Management highlighted robust performance backed by strong project revenues and steady telecom service growth.
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RailTel’s high execution in large projects like Kavach (railway safety and automation) boosted segment growth, with order bookings at ₹721 crores for Q1 and a total order book at ₹7,197 crores.
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Chairman Sanjai Kumar expects 25% growth for FY26, driven by continued digital India initiatives, railway modernization, and rural broadband.
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Company remains well-positioned to leverage “PM Gati Shakti” opportunities and expand digital infrastructure adoption.
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Margin pressure is present, especially in IT projects, where typical margins range from 4-5%.
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International business expansion is in focus, with efforts underway to diversify revenue streams.
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Strategic priority is timely execution of large orders and managing cost factors amidst competition and margin pressures.
Q4 FY25 Earnings Results
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Revenue from Operations: ₹1,308.28 crores, up 57% YoY from ₹832.70 crores in Q4 FY24.
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Total Income: ₹1,329 crores.
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Profit After Tax (PAT): ₹113.4 crores, up 46.3% YoY from ₹77.53 crores.
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EBITDA: ₹180 crores, up 53.8% YoY from ₹117 crores.
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EBITDA Margin: 13.73%, a slight contraction from 14.00% last year.
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Profit improvement was driven by higher operational revenues, order execution, and strong demand for railway-related IT and broadband services.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.