RailTel Corporation of India Ltd (BSE: 543265 / NSE: RAILTEL) reported mixed quarterly performance in the three months ended December 31, 2025, with lower sequential revenue but higher profit, while its nine-month earnings increased on the back of stronger project execution.
For Q3 FY26, RailTel posted revenue from operations of ₹91,345 lakh, compared with ₹95,136 lakh in the previous quarter and ₹76,762 lakh a year earlier. Profit after tax for the quarter stood at ₹6,240 lakh, slightly below the ₹6,505 lakh reported in Q3 FY25.
Business overview
RailTel is a government-owned telecom infrastructure provider focused on building and managing optical fibre networks along Indian Railways’ right of way. The company operates two reportable segments: Telecom Services and Project Work Services, and functions as a pan-India single geographical segment.
Its business includes broadband services, managed telecom solutions, Wi-Fi installations, data centre connectivity, and execution of large telecom projects for public and private sector clients.
Financial performance – Q3 FY26
Total income for the quarter was ₹92,404 lakh, compared with ₹96,574 lakh in Q2 FY26 and ₹78,229 lakh in Q3 FY25.
Total expenses stood at ₹82,986 lakh, driven largely by project expenses of ₹54,514 lakh and access and other charges of ₹14,068 lakh.
Profit before tax for the quarter was ₹8,500 lakh, down from ₹10,530 lakh in Q2 FY26 but broadly in line with ₹8,968 lakh in Q3 FY25. Profit after tax was ₹6,240 lakh.
Earnings per share for the quarter stood at ₹1.94, compared with ₹2.03 in the same period last year.
Nine-month performance (9M FY26)
For the nine months ended December 31, 2025, RailTel reported revenue from operations of ₹2,60,862 lakh, up from ₹2,16,922 lakh in the same period last year.
Profit before tax for 9M FY26 increased to ₹27,961 lakh from ₹25,059 lakh in 9M FY25, while profit after tax rose to ₹20,457 lakh from ₹18,636 lakh.
Segment performance
Telecom Services:
Revenue in Q3 FY26 was ₹34,954 lakh, compared with ₹33,792 lakh in Q3 FY25. Profit before tax and interest from this segment stood at ₹7,892 lakh.
Project Work Services:
Revenue for the quarter was ₹56,391 lakh, significantly higher than ₹42,970 lakh in Q3 FY25, reflecting stronger project execution. Segment profit before tax and interest was ₹1,877 lakh.
Balance sheet and capital position
As of December 31, 2025, RailTel’s total assets stood at ₹5,00,521 lakh, compared with ₹4,18,899 lakh a year earlier.
Total liabilities were ₹2,85,966 lakh, while capital employed stood at ₹2,14,555 lakh.
Paid-up equity share capital remained unchanged at ₹32,094 lakh.
Key developments
The board approved the unaudited financial results for the quarter and nine months ended December 31, 2025 at its meeting on February 2, 2026.
The statutory auditors conducted a limited review of the financial results in accordance with Ind AS 34 (Interim Financial Reporting).
Risks and constraints
The company’s performance remains linked to the pace of government and enterprise telecom projects, execution timelines, license fees payable to the Department of Telecommunications, and overall project cost management.
Outlook and commentary
RailTel’s nine-month results indicate higher profitability despite quarterly revenue fluctuations, reflecting continued activity in its project work segment alongside steady performance in telecom services.