New Delhi: RailTel Corporation of India Limited announced its financial performance for the second quarter of the financial year 2026-27, ended September 30, 2026. The company reported strong revenue growth, supported by its Project Work Services and Telecom Services businesses. However, lower net profit and a contraction in operating margin reflected continued pressure on profitability.
Consolidated net profit stood at ₹68.6 crore, compared with ₹76.1 crore in the corresponding quarter of the previous financial year. Revenue increased to ₹1,146 crore from ₹951.4 crore in Q2 FY26.
RailTel Q2 FY27 Financial Results
RailTel recorded growth in revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA) during the July-September quarter. However, the growth in operating earnings was slower than revenue growth.
The key financial highlights for Q2 FY27 are:
- Consolidated revenue: ₹1,146 crore, up 20.5% year on year from ₹951.4 crore.
- Net profit: ₹68.6 crore, down approximately 9.9% from ₹76.1 crore.
- EBITDA: ₹176 crore, an increase of 13.9% from ₹154 crore.
- EBITDA margin: 15.4%, compared with 16.2% in Q2 FY26.
- Profit before tax (PBT): ₹92.30 crore, down from ₹105.30 crore in the corresponding quarter last year.
- Exceptional charge: The company reported a one-time charge of ₹32.2 crore during the quarter.
The results show that RailTel continued to expand its business, but the increase in revenue did not translate into higher net profit.
RailTel Q2 FY27 Results: Revenue Growth Driven by Project Work Services
RailTel’s Project Work Services segment remained the larger contributor to revenue in Q2 FY27. The segment recorded stronger year-on-year growth than Telecom Services, supporting the company’s overall revenue expansion.
The segment-wise revenue performance was as follows:
- Project Work Services: Revenue increased to ₹749.20 crore from ₹583.83 crore in Q2 FY26.
- Telecom Services: Revenue rose to ₹396.94 crore from ₹367.53 crore in the corresponding quarter last year.
The growth in Project Work Services reflects a higher contribution from project-related activities, while Telecom Services also registered an increase in revenue.
Both segments contributed to RailTel’s 20.5% consolidated revenue growth during the quarter.
RailTel Net Profit Declines 9.9% Amid One-Time Charge
Despite higher revenue, RailTel’s consolidated net profit declined to ₹68.6 crore in Q2 FY27 from ₹76.1 crore a year earlier.
Profit before tax also fell to ₹92.30 crore from ₹105.30 crore in Q2 FY26. The company reported an exceptional charge of ₹32.2 crore during the quarter, which affected its reported profitability.
The key factors affecting the company’s bottom line included:
- A ₹32.2 crore exceptional charge during the quarter.
- Net profit declining by approximately 9.9% year on year.
- Profit before tax falling compared with the corresponding quarter last year.
- EBITDA growth remaining below the pace of revenue growth.
The results highlight the challenge of converting higher business volumes into stronger bottom-line growth. The impact of the exceptional charge and the factors behind the margin contraction remain important considerations when assessing RailTel’s financial performance.
RailTel EBITDA Margin Contracts to 15.4%
RailTel’s EBITDA increased 13.9% year on year to ₹176 crore from ₹154 crore. However, the company’s EBITDA margin declined to 15.4% from 16.2% in Q2 FY26, representing a contraction of 80 basis points.
The key profitability indicators were:
- EBITDA growth: 13.9% year on year.
- Revenue growth: 20.5% year on year.
- Current EBITDA margin: 15.4%.
- Year-ago EBITDA margin: 16.2%.
- Margin contraction: 80 basis points.
The slower growth in EBITDA compared with revenue indicates that operating profitability did not improve at the same pace as business activity. The decline in net profit, together with the narrower EBITDA margin, contributed to a mixed financial performance during the quarter.
RailTel Declares ₹1 Interim Dividend for FY27
Alongside announcing its Q2 FY27 results, RailTel’s Board of Directors declared an interim dividend of ₹1 per equity share for the financial year 2026-27.
The dividend represents 10% of the face value of ₹10 per equity share.
The important dividend details are:
- Interim dividend: ₹1 per equity share.
- Face value: ₹10 per share.
- Dividend rate: 10% of face value.
- Record date: October 30, 2026.
- Scheduled payment date: November 20, 2026.
The record date will determine the shareholders eligible to receive the interim dividend. The scheduled payment date is November 20, 2026.
RailTel Share Price Falls More Than 3% After Q2 Results
RailTel shares came under pressure in early trading on October 26, 2026, following the announcement of the company’s quarterly financial performance.
According to the market data provided, the stock declined more than 3% during early trade and touched an intraday low of ₹221.75, which was also reported as its 52-week low.
The stock’s trading details were:
- Previous closing price: ₹229.
- Opening price: ₹225.10.
- Intraday high: ₹227.70.
- Intraday low: ₹221.75.
- Early trading movement: A decline of more than 3%.
- Time of reported price update: 9:35 AM.
The fall in RailTel shares followed a decline in net profit and an 80-basis-point contraction in EBITDA margin, despite strong revenue and EBITDA growth.
The mixed quarterly performance appeared to weigh on market sentiment. However, the share price information relates to the specified trading session and may change throughout the day.
RailTel Q2 FY27 Results: Key Takeaways
The company’s second-quarter performance can be summarised through the following points:
- Revenue increased 20.5% year on year to ₹1,146 crore.
- Net profit declined 9.9% to ₹68.6 crore.
- EBITDA rose 13.9% to ₹176 crore.
- EBITDA margin contracted to 15.4% from 16.2%.
- Profit before tax declined to ₹92.30 crore from ₹105.30 crore.
- A one-time charge of ₹32.2 crore affected quarterly profitability.
- Project Work Services revenue increased to ₹749.20 crore.
- Telecom Services revenue rose to ₹396.94 crore.
- The company declared an interim dividend of ₹1 per equity share.
- RailTel shares fell more than 3% in early trade following the results.
Overall, RailTel delivered strong revenue growth in Q2 FY27, supported by both its business segments. However, lower net profit, margin contraction and the exceptional charge resulted in a mixed earnings performance.
About RailTel Corporation of India Limited
RailTel Corporation of India Limited is a public sector enterprise under the Ministry of Railways, Government of India. Established in 2000, the company operates a nationwide optical fibre network along railway tracks and provides telecom, broadband, data centre, IT and digital infrastructure services. RailTel also undertakes technology and connectivity projects for government departments, railway operations and other institutional customers.
