This article first appeared on GuruFocus .
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Operating Revenue:INR951 crores in Q2 FY26, up 28% from INR744 crores in Q1 FY26.
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Telecom Segment Revenue:INR367 crores in Q2 FY26.
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Project Segment Revenue:INR584 crores in Q2 FY26.
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Total Revenue:INR966 crores in Q2 FY26, a 27% increase from INR758 crores in Q1 FY26.
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Profit Before Tax (PBT):INR105 crores in Q2 FY26, up 18% from INR89 crores in Q1 FY26.
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Profit After Tax (PAT):INR76 crores in Q2 FY26, a 15% increase from INR66 crores in Q1 FY26.
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Total Income (H1 FY26):INR1,724 crores, a 20% increase from INR1,440 crores in H1 FY25.
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PAT (H1 FY26):INR142 crores, up 17% from INR121 crores in H1 FY25.
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Earnings Per Share (EPS) H1 FY26:INR4.43, a 17% increase from INR3.78 in H1 FY25.
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EPS Q2 FY26:INR2.37, up 15% from INR2.06 in Q1 FY26.
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Order Book:INR8,251 crores as of the current date.
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Total Orders Received (FY26):INR3,317 crores up to 30/09/2025.
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Interim Dividend:INR1 per share for FY25-'26.
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Warning! GuruFocus has detected 3 Warning Signs with BOM:543265.
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Release Date: October 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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RailTel Corporation of India Ltd ( BOM:543265 ) reported a significant Q-on-Q revenue growth of 28% in Q2 FY26, with operating revenue reaching INR951 crores.
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The company declared an interim dividend of INR1 per share for FY25-'26, reflecting strong financial performance.
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The total order book stands at INR8,251 crores, with new orders in the current financial year totaling INR3,317 crores, surpassing the entire previous year's order inflow.
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RailTel's Telecom segment showed robust performance, contributing INR367 crores to the operating income.
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The company is expanding its data center operations, with a new 10-megawatt data center under development in Noida, indicating growth potential in this segment.
Negative Points
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The company's EBIT margin is expected to remain around 11% to 12%, indicating limited margin expansion despite revenue growth.
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RailTel's project business, which is competitive, yields lower margins of around 4% to 5%, affecting overall profitability.
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The order book is heavily reliant on government contracts, with minimal private sector contribution, which may limit diversification.
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The data center business, while growing, currently contributes a small portion of total revenue, indicating it is still in the early stages of development.
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The company's revenue growth guidance remains conservative at 20% to 25%, reflecting potential challenges in maintaining higher growth rates.
Q & A Highlights
Q: Could you provide an update on the order book status and any plans for data center expansion or CapEx? A: The current order book stands at INR8,251 crores. We are actively participating in tenders, including KAVACH, where we have ongoing projects. Regarding data centers, we have one operational in Gurgaon and another under development in Mumbai. We are also working on a 10-megawatt data center in Noida, starting with 5 megawatts.
Q: What percentage of the order book is related to railways, and could you provide a breakdown of telecom services revenue? A: Approximately 22% of the order book is related to railways. For telecom services revenue, NLD is INR153 crores, ISP is INR111 crores, and IP is INR29 crores, totaling INR294 crores.
Q: Are you maintaining the guidance of 25% revenue growth and 11% to 12% margin? A: Yes, we are maintaining our guidance of 25% revenue growth and 11% to 12% margin.
Q: Can you provide details on the composition of the order book and the execution timeline? A: The order book includes INR3,700 crores from various states, INR2,000 crores from railways, and INR900 crores from PSUs. Execution timelines vary, with some orders taking one to two years and others extending to four to five years. We expect around INR2,000 crores to convert into revenue annually.
Q: What is the current CapEx for the quarter, and what is the estimated CapEx for the second half of the year? A: We have booked INR62 crores in CapEx for Q2, and we plan to maintain a total CapEx of INR250 crores for the entire financial year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
