RailTel Q1 profit remains flat despite 20% jump in revenue

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RailTel Corporation of India reported a flat net profit of ₹66 crore for the quarter ended June 30, even as revenue and operating profit recorded double-digit growth year-on-year.

The company’s board approved the unaudited financial results for the quarter at its meeting held on July 30.

Revenue from operations rose 20.1% to ₹893.2 crore in the June quarter from ₹743.8 crore in the corresponding period last year.

The results present a mixed picture—business volumes grew strongly, but higher costs prevented that growth from translating into higher earnings.

Margins come under pressure

Operating performance improved during the quarter, with EBITDA rising 13.6% year-on-year to ₹132 crore from ₹116 crore.

However, the EBITDA margin narrowed to 14.7% from 15.6% a year ago.

The decline in margins suggests that expenses increased faster than revenue, reducing the amount of operating profit the company generated from every rupee of sales.

Higher turnover, stable bottom line

Despite the healthy increase in revenue and operating profit, RailTel’s net profit remained unchanged at ₹66 crore on a year-on-year basis.

The flat bottom line indicates that gains at the operating level were likely offset by higher depreciation, finance costs, taxes or other expenses below the EBITDA line.

Board approves results

The financial results were reviewed and recommended by the Audit Committee before being approved by the Board of Directors.

The company’s statutory auditors also carried out a limited review of the financial statements for the quarter ended June 30, 2026.

Overall, RailTel delivered another quarter of strong revenue growth, but sustaining margins will remain a key monitorable for investors in the coming quarters.

Shares of RailTel Corporation of India closed 0.17% higher at ₹294 on the National Stock Exchange on Thursday.



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