RailTel Corporation of India Limited reported a strong 28% quarter-on-quarter revenue growth in Q2 FY27, reaching INR1,146 crore. The company also saw a 29% Q-on-Q increase in profit before tax, reaching INR124 crore. The order book remains robust at INR12,282 crore, with significant contributions from the Telecom and Projects segments.
RailTel Corporation of India Limited – Q2 FY27 Earnings Conference Call
In its Q2 FY27 earnings conference call, RailTel Corporation of India Limited highlighted robust financial performance, driven by strong execution and order booking across its segments. The company announced an operating revenue of INR1,146 crore for the second quarter of FY27, representing a significant 28% increase from the previous quarter (Q1 FY27), which stood at INR893 crore. This growth was fueled by contributions from the Telecom segment (INR397 crore) and the Projects segment (INR749 crore).
Half-Yearly Performance and Profitability
For the first half of FY27 (H1 FY27), RailTel’s revenue from operations reached INR2,039 crore, a 20% increase compared to INR1,695 crore in H1 FY26. Profit before tax (PBT) before exceptional items in Q2 FY27 was INR124 crore, up 29% from INR96 crore in Q1 FY27. Profit after tax (PAT) for Q2 FY27 stood at INR69 crore, showing a 4% quarter-on-quarter growth.
Order Book and Future Outlook
The company continues to maintain a strong order book, which stands at approximately INR12,282 crore as of date. RailTel has also bagged new orders worth INR2,458 crore in H1 FY27. Management expressed confidence in sustaining operational momentum, emphasizing project execution and a commitment to pursuing growth, which is expected to lead to substantial growth in operating income in the coming quarters. The company is also actively pursuing opportunities in the data center business, with projections of INR300 crore revenue this year and INR500 crore next year.
Segmental Performance Highlights
Key segmental updates include contributions from the Railway sector at approximately INR2,873 crore of the order book. For the current quarter, NLD contributed INR174 crore, while ISP revenue was around INR110 crore. The strong growth in NLD is attributed to recent large orders, including one from an armed force, and contributions from railways for CCTV connectivity.
Key Projects and Initiatives
Progress on the KAVACH project is ongoing, with approvals for drawings and designs underway. Financial progress is anticipated in the last quarter of the fiscal year, with an estimated INR50 crore to INR100 crore expected. The company is also developing data centres, with a 10-megawatt facility in Noida expected to be operational by May 2027. RailTel is also looking at two more edge data centres this financial year. Regarding international opportunities, the company is actively hunting for new orders, though none have been secured in the recent months.
Source: BSE
