Railtel Corporation of India reported a 34.60% year-on-year increase in net profit to ₹66.00 crore for the quarter ended June 30, compared to ₹48.60 crore in the same period last year. Revenue from operations grew 33.20% to ₹743.80 crore from ₹558.00 crore. EBITDA increased 11.50% to ₹116.00 crore, though operating margin compressed to 15.60% from 18.60% in the previous year.

Financial Performance

The company's financial results for the quarter ended June 30 show significant year-over-year improvements in key financial metrics:

Company Overview

Railtel Corporation operates as one of India's largest telecom infrastructure providers with:

• 62,000 km optical fibre network
• 21,000-km citywide access network
• 11,000+ points of presence
• 1,100 telecom towers

Market Performance

Despite the positive financial results, RailTel's shares closed down 3.76% at ₹379.15 on the Bombay Stock Exchange (BSE).

Conclusion

Railtel Corporation of India has demonstrated strong growth in its financial performance for the quarter ended June 30. The significant increase in net profit and revenue, along with improved EBITDA, indicates the company's robust operational performance. However, the slight compression in operating margin and the negative market reaction suggest that investors may have had higher expectations or concerns about future growth prospects.

RailTel Corporation of India Limited (RailTel) has recently secured a significant work order and reported impressive financial results for the first quarter. The company continues to demonstrate growth in its core business areas while expanding its project portfolio.

New Contract from Central Coalfields Limited

RailTel has been awarded a substantial work order from Central Coalfields Limited (CCL) for the provisioning of internet services. The contract, valued at ₹40.20 crore (including taxes), involves providing 8.4 Gbps internet services to CCL. This project is set to be executed by November 23, 2025, as per the company's disclosure to the stock exchanges.

Strong Q1 Financial Performance

The company has reported robust financial results for the first quarter:

While the company demonstrated significant growth across key financial metrics, it's worth noting that the EBITDA margin slightly contracted to 13.7% from 14% in the previous year. This marginal decrease was attributed to an 86% increase in project expenses.

Segment-wise Revenue Performance

RailTel's revenue growth was driven by strong performances in both its main business segments:

1. Project Work Services: Revenue nearly doubled to ₹949.53 crore
2. Telecom Services: Revenue grew by 7% to ₹358.75 crore

Shareholding Pattern Changes

The company's shareholding pattern has seen some shifts:

• Small shareholders increased their stake to 20.11% from 16%
• The government continues to maintain a majority stake of 72%

Additional Contract

In addition to the CCL contract, RailTel has also secured a work order from the Department of Social Security and Empowerment of Persons with Disabilities (SSEPD), Government of Odisha. This order, valued at ₹10.06 crore (including taxes), is for the implementation of comprehensive IT solutions for the SSEPD Department. The project is scheduled to be completed by January 20, 2026.

Investor Conference Call

RailTel has scheduled an Analyst/Investor Conference Call for July 29, 2025, at 11:00 AM IST. During this call, the management will discuss the financial results and operations for the quarter ended June 30, 2025.

Market Performance

Despite the positive news, RailTel's shares closed at ₹402.35, down 0.20% in the most recent trading session.

RailTel's recent contract wins and strong financial performance underscore the company's growing presence in the telecommunications and IT services sector, particularly in government and public sector undertakings. The company's ability to secure diverse projects and deliver solid financial results positions it well for continued growth in the coming quarters.