Mumbai: RailTel Corporation of India Ltd., a Navratna PSU under the Ministry of Railways, announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, following a meeting of its Board of Directors.
Despite margin pressure due to higher project execution costs, the company delivered strong top-line growth, led by robust momentum in Project Work Services.
Q3 FY26 Financial Performance Highlights
For the quarter ended December 31, 2025 (Q3 FY26), RailTel reported:
- Revenue from Operations: ₹913.45 crore, up 19.0% YoY from ₹767.62 crore
- Profit Before Tax (PBT): ₹85.00 crore
- Profit After Tax (PAT): ₹62.40 crore, down 4.07% YoY
- Earnings Per Share (EPS): ₹1.94 (basic and diluted)
While revenue growth remained strong, profitability was impacted by higher project-related expenses during the quarter.
Nine-Month Financial Performance (9M FY26)
For the period April–December 2025, RailTel posted healthy growth across key metrics:
- Revenue from Operations: ₹2,608.62 crore, up 20.3% YoY
- Profit Before Tax (PBT): ₹279.61 crore, up 11.6% YoY
- Profit After Tax (PAT): ₹204.57 crore, up 9.8% YoY
- EPS: ₹6.37 for 9M FY26
Segment-Wise Revenue Performance
RailTel’s growth during the quarter was driven by its diversified business model:
- Telecom Services Revenue:
₹349.54 crore, up 3.43% YoY - Project Work Services Revenue:
₹563.91 crore, up 31.23% YoY, emerging as the primary growth driver
Expense Analysis: Higher Project Costs Impact Margins
Total expenses rose 20.22% YoY to ₹829.86 crore in Q3 FY26, compared with ₹690.25 crore last year. Key expense components include:
- Project Expenses: ₹545.14 crore, up 33.34% YoY
- Employee Benefit Expenses: ₹58.56 crore, up 3.79% YoY
- License Fees to DoT: ₹22.47 crore, down 32.90% YoY
The sharp rise in project execution costs weighed on quarterly profitability despite revenue growth.
Management Commentary
Commenting on the performance, Mr. Sanjai Kumar, Chairman & Managing Director of RailTel, said:
“The results for the nine months reflect our sustained execution capabilities and strong demand for our diversified services. Our focus on strategic project work and robust telecom infrastructure continues to yield profitable growth, reinforcing our position in India’s digital ecosystem.”
Board Approval and Regulatory Compliance
The financial results were approved by the Board of Directors based on the recommendation of the Audit Committee. The results have undergone a limited review by statutory auditors Lunawat & Co., Chartered Accountants, and are disclosed in compliance with SEBI (LODR) Regulations, 2015.
About RailTel Corporation of India Ltd.
Incorporated in 2000, RailTel Corporation of India Ltd. was established to create a nationwide broadband, VPN, and telecom network to modernize train control operations and safety systems for Indian Railways. A Navratna PSU, RailTel’s optical fiber network spans over 6,000 railway stations, covering all major commercial centers across India and supporting the country’s growing digital infrastructure.
