Railtel Q1 Results: Net Profit Flat at ₹657.8 Crore, EBITDA Margin Dips

2 min read     Updated on 30 Jul 2026, 08:34 PM
scanx
Reviewed by
Riya DScanX News Team
AI Summary

Railtel Corporation of India posted Q1 net profit of ₹657.8 crore, marginally down from ₹661.0 crore a year ago, as revenue from operations grew 20% year-on-year to ₹8,932.7 crore. EBITDA margin contracted to 14.73% from 15.58%, reflecting higher project execution costs. Telecom Services contributed ₹3,608.1 crore and Project Work Services ₹5,324.6 crore to total revenue.

powered bylight_fuzz_icon
46967061

*this image is generated using AI for illustrative purposes only.

Railtel Corporation of India reported a net profit of ₹657.8 crore for the quarter ended June 30, 2026, effectively flat compared to ₹661.0 crore in Q1FY26. The Government of India undertaking posted revenue from operations of ₹8,932.7 crore, marking a 20% year-on-year increase from ₹7,438.1 crore. The Board of Directors approved the unaudited financial results on July 30, 2026, following a review by the Audit Committee.

The statutory auditors, Lunawat & Co., issued a limited review report on the financial statements prepared in accordance with Ind AS 34. The audit scope included reliance on branch auditors for the Eastern, Western, and Southern regions, which collectively accounted for revenue of ₹54,977 crore and total assets of ₹3,57,399 crore as of June 30, 2026. The company disclosed no material misstatements in the filing submitted to the National Stock Exchange and BSE Limited under Regulation 30 and 33 of SEBI (LODR) Regulations, 2015.

Financial Highlights

The latest results reflect steady top-line momentum alongside margin pressure. EBITDA for the quarter stood at ₹1.32 billion rupees versus ₹1.16 billion rupees in the corresponding period last year, while EBITDA margin contracted to 14.73% from 15.58% year-on-year. Total expenses stood at ₹8,131.2 crore, an increase from ₹6,722.7 crore in Q1FY26. Key expense drivers included project expenses of ₹50,836 crore and employee benefits of ₹6,022 crore. Finance costs remained low at ₹103 crore. The company recorded exceptional items of ₹704 crore, contributing to a profit before tax of ₹894.4 crore. Tax expense for the period comprised current tax of ₹1,708 crore and deferred tax of ₹658 crore.

Particulars Q1FY27 (₹ Cr) Q1FY26 (₹ Cr)
Revenue from Operations 8,932.7 7,438.1
Total Income 9,096.0 7,581.6
Total Expenses 8,131.2 6,722.7
Profit Before Tax 894.4 893.1
Net Profit 657.8 661.0
EBITDA Margin 14.73% 15.58%

Segment Performance

The Telecom Services segment contributed ₹3,608.1 crore to revenue, while Project Work Services generated ₹5,324.6 crore, accounting for nearly 60% of total revenue. The Telecom segment delivered a profit before tax and interest of ₹693.6 crore. Project Work Services reported a segment profit of ₹241.0 crore for the quarter.

Segment Revenue (₹ Cr) Profit Before Tax & Interest (₹ Cr)
Telecom Services 3,608.1 693.6
Project Work Services 5,324.6 241.0
Total 8,932.7 934.6

What the Numbers Show

While revenue growth was robust at 20%, net profitability remained stagnant due to higher operational costs. The contraction in EBITDA margin to 14.73% from 15.58% underscores the rising cost pressures, particularly within the Project Work Services segment, where execution costs are scaling proportionally with income. Un-allocable expenditure increased to ₹943 crore from ₹386.5 crore in the corresponding quarter of FY26, further weighing on overall bottom-line efficiency. The high-margin Telecom Services business continues to provide a counterbalance, though its relative contribution to total revenue remains smaller than the project-driven segment.

Historical Stock Returns for Railtel Corporation of India

1 Day5 Days1 Month6 Months1 Year5 Years
+0.26%+1.50%-3.90%-14.10%-23.44%+111.23%

How might the widening gap between high-margin Telecom Services and lower-margin Project Work Services impact Railtel's overall EBITDA margin trajectory in FY27?

What specific cost-control measures or pricing strategies is Railtel implementing to address the 20% surge in total expenses and rising project execution costs?

Given the significant increase in un-allocable expenditure, what operational inefficiencies are driving this cost, and how will management mitigate them in future quarters?

Railtel Corporation of India
View Company Insights
View All News
like17
dislike

RailTel Corporation Q1 Results: 26th AGM Set for Aug 20, Dividend Record Date Fixed

2 min read     Updated on 30 Jul 2026, 04:08 PM
scanx
Reviewed by
Jubin VScanX News Team
AI Summary

RailTel Corporation of India has scheduled its 26th Annual General Meeting via Video Conferencing on August 20, 2026 at 12:30 Hrs, with the AGM notice and Annual Report for FY2025-26 dispatched electronically on July 28, 2026. Remote e-voting through NSDL will be available from August 17 to August 19, 2026, with August 13, 2026 fixed as both the cut-off date for e-voting eligibility and the record date for final dividend entitlement. The final dividend, subject to shareholder approval at the AGM, will be paid within 30 days of its declaration.

powered bylight_fuzz_icon
46953489

*this image is generated using AI for illustrative purposes only.

RailTel Corporation of India , a Government of India Undertaking under the Ministry of Railways, has announced the convening of its 26th Annual General Meeting through Video Conferencing and Other Audio-Visual Means. The meeting is scheduled for Thursday, August 20, 2026 at 12:30 Hrs, in compliance with MCA General Circular No. 03/2025 dated September 22, 2025, the Companies Act, 2013, and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

AGM Notice and Annual Report Dispatch

The Notice of the 26th AGM and the Annual Report for Financial Year 2025-26 were sent electronically on Tuesday, July 28, 2026 to all members whose email addresses were registered with the Company, Depository, or Registrar and Share Transfer Agent as on Friday, July 24, 2026. The documents are also hosted on the company's website at www.railtel.in , as well as on the websites of BSE Limited, National Stock Exchange of India Limited, and NSDL.

E-Voting Schedule and Key Dates

The company has engaged NSDL to provide remote e-voting facilities to members for casting votes on the business set forth in the AGM Notice. The following key dates and timelines have been established:

Parameter: Details
AGM Date & Time: Thursday, August 20, 2026 at 12:30 Hrs
AGM Mode: Video Conferencing (VC) / OAVM
Remote E-Voting Opens: Monday, August 17, 2026 at 9:00 AM (IST)
Remote E-Voting Closes: Wednesday, August 19, 2026 at 5:00 PM (IST)
Cut-Off Date (E-Voting Eligibility): Thursday, August 13, 2026
Record Date (Dividend Eligibility): Thursday, August 13, 2026
Annual Report Period: Financial Year 2025-26
AGM Notice Dispatch Date: Tuesday, July 28, 2026

Dividend and Record Date

RailTel Corporation has fixed Thursday, August 13, 2026 as the record date for determining the eligibility of members to receive the final dividend. The final dividend, if approved by shareholders at the 26th AGM, will be paid within 30 days from the date of its declaration at the meeting.

E-Voting Participation Guidelines

Only those members whose names appear in the Register of Beneficial Owners maintained by the depositories as on the cut-off date of August 13, 2026 will be entitled to avail the remote e-voting facility or vote through the e-voting system during the AGM. Key participation conditions include:

  • Members who have cast their vote via remote e-voting may attend the AGM through VC/OAVM but shall not be entitled to cast their vote again
  • Once a vote on a resolution is submitted through e-voting, it cannot be changed
  • Only members present at the AGM via VC/OAVM who have not previously cast their vote through remote e-voting are eligible to vote during the AGM
  • Members who acquire shares after the electronic dispatch of the AGM notice and hold shares as on the cut-off date may obtain login credentials by sending a request to evoting@nsdl.co.in
  • The remote e-voting facility is available at www.evoting.nsdl.com

Contact and Compliance Details

The AGM is being conducted in compliance with applicable regulatory provisions. Members with queries regarding e-voting may contact NSDL at 022-4886 7000 or 022-2499 7000, or write to evoting@nsdl.co.in . The company's Company Secretary and Compliance Officer, J S Marwah, may be reached at cs@railtel.in or +91 11 22900600. RailTel Corporation's registered and corporate office is located at Plate-A, 6th Floor, Office Block, Tower-2, East Kidwai Nagar, New Delhi-110023.

Historical Stock Returns for Railtel Corporation of India

1 Day5 Days1 Month6 Months1 Year5 Years
+0.26%+1.50%-3.90%-14.10%-23.44%+111.23%

How might the final dividend declaration at the upcoming AGM impact RailTel's stock valuation and investor sentiment in the near term?

What strategic initiatives or capital expenditure plans for FY 2026-27 are likely to be highlighted in the Annual Report for FY 2025-26?

Could the shift to fully virtual AGMs signal a broader trend in corporate governance compliance for Indian public sector undertakings?

Railtel Corporation of India
View Company Insights
View All News
like17
dislike

More News on Railtel Corporation of India

1 Year Returns:-23.44%