EL7.AI
StocksMedium•26 October 2026•
4 min read

RailTel Revenue Jumps 20.47% to Rs 1,146.14 Crore as Profit Takes Exceptional Hit

Key Facts

1Operating revenue rose 20.47% to Rs 1,146.14 crore, compared with Rs 951.36 crore in the year-earlier period.
2Exceptional items amounted to Rs 32.17 crore, and profit before tax fell to Rs 92.30 crore from Rs 105.30 crore.
3Total expenses rose 21.35% to Rs 1,024.59 crore, while project business expenses climbed 28.74% to Rs 722.12 crore.
4EBITDA increased 13.9% to Rs 176 crore, while its margin narrowed to 15.4% from 16.2%.
5The Munitions India order is worth about Rs 20.04 crore, inclusive of taxes, and covers 13 locations.

RailTel’s operating revenue rose 20.47% year on year to Rs 1,146.14 crore in the second quarter of FY2027, from Rs 951.36 crore in the year-earlier period, according to data reported by Capital Market. But profit before tax fell to Rs 92.30 crore from Rs 105.30 crore, in results that included exceptional items worth Rs 32.17 crore. The comparison shows strong revenue growth alongside a decline in profit before tax, as expenses rose faster than sales. The exceptional item puts part of the pressure on profitability in a specific context, alongside higher project business costs. The results were for the period ended in the second quarter of FY2027.

Total expenses reached Rs 1,024.59 crore, up 21.35% from Rs 844.31 crore in the year-earlier quarter of FY2026, according to Capital Market. Project business expenses were the biggest driver among the expenses reported, rising 28.74% to Rs 722.12 crore. License fees paid to the Department of Telecommunications came to Rs 23.91 crore, up 8.04%, the same source reported. The increase in execution costs is matched by growth in revenue from project business services, making the gap between revenue and expense growth a central part of the period’s results. The decline in profit before tax was not solely due to this item; results also recorded an exceptional loss of Rs 32.17 crore.

At the business level, revenue from telecom services rose to Rs 396.94 crore in the second quarter of FY2027, from Rs 367.53 crore in the year-earlier period, according to NDTV Profit. Segment results increased to Rs 112.28 crore from Rs 102.47 crore, reflecting improvement in both revenue and segment results. Project business services generated revenue of Rs 749.20 crore, compared with Rs 583.83 crore a year earlier. The segment’s results rose to Rs 27.08 crore from Rs 22.90 crore. The figures show that project services recorded a larger absolute increase in revenue than telecom services, while results in both segments remained far below their respective revenues.

EBITDA rose to Rs 176 crore in the quarter, up 13.9% from Rs 154 crore in the year-earlier period, according to NDTV Profit. However, the EBITDA margin narrowed to 15.4% from 16.2%, despite an increase in the metric in absolute terms. The margin contraction coincided with total expenses rising 21.35% and project business expenses advancing 28.74% year on year, according to Capital Market figures. Meanwhile, revenue and results from telecom services increased, while results from project business services also improved from the year-earlier period. The results thus combined expansion in both segments with a lower margin, alongside the exceptional loss item of Rs 32.17 crore.

In the course of its business, RailTel received an order from Munitions India to set up a data centre and disaster recovery centre on an IaaS platform under the Q-Shakti project, according to NDTV Profit. The order is worth about Rs 20.04 crore, inclusive of taxes, and covers 13 locations. The company received the work order on October 23, 2026, according to the disclosure cited by the source. The contract provides for an initial operating period of four months, followed by six years of service, with an option to extend for a further three years. The disclosure set February 28, 2027, as the deadline for execution, making progress on the order one of the company’s upcoming developments.

RailTel shares closed at Rs 230.90 on October 23, 2026, and were down 36.96% over the previous year, according to market data cited by NDTV Profit. The stock traded in a 52-week range of Rs 226 to Rs 391. These figures come as the company reported second-quarter results that included revenue growth, lower profit before tax and a narrower EBITDA margin. The share price movement and annual range provide context for market performance around the announcement, without changing the details of the period’s operating and financial performance. The deadline for executing the Munitions India order also remains February 28, 2027.