RailTel Corporation of India Limited reported a decline in net profit for the second quarter of FY 2026-27, even as revenue registered strong growth. The railway PSU posted a consolidated net profit of Rs 68.6 crore for the quarter ended September 30, 2026, compared with Rs 76.1 crore in the corresponding period of the previous financial year.
The company’s consolidated revenue increased 20.5% year-on-year to Rs 1,146 crore from Rs 951.4 crore in Q2 FY26, reflecting growth in its telecom and project work businesses.
The company’s net profit declined approximately 9.9% year-on-year, while earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 13.9% to Rs 176 crore from Rs 154 crore in the year-ago quarter.
However, the EBITDA margin narrowed to 15.4% from 16.2% in the corresponding quarter last year.
RailTel Declares Rs 1 Interim Dividend
Alongside its quarterly results, RailTel’s Board of Directors declared an interim dividend of Rs 1 per equity share for FY 2026-27. The dividend represents 10% of the share’s face value of Rs 10.
The company has fixed October 30, 2026, as the record date for determining shareholders eligible to receive the dividend. Payment is scheduled for November 20, 2026.
Project Work Services Drives Revenue Growth
RailTel’s Project Work Services segment emerged as the larger contributor to revenue during the quarter.
Revenue from Project Work Services rose to Rs 749.20 crore in Q2 FY27 from Rs 583.83 crore in the corresponding quarter of the previous year.
Revenue from Telecom Services increased to Rs 396.94 crore from Rs 367.53 crore over the same period.
The performance reflects higher contributions from both business segments, with Project Work Services recording the stronger year-on-year growth.
Profitability Remains Under Pressure
Despite the rise in revenue, RailTel’s profitability faced pressure during the quarter. Profit before tax declined to Rs 92.30 crore from Rs 105.30 crore in Q2 FY26.
The quarterly results included an exceptional charge of Rs 32.2 crore, which affected the company’s reported profitability.
The contrasting performance of revenue and net profit highlights the challenge of converting higher business volumes into stronger bottom-line growth.
Key Financial Highlights — Q2 FY27
- Consolidated revenue: Rs 1,146 crore, up 20.5% year-on-year.
- Net profit: Rs 68.6 crore, down 9.9%.
- EBITDA: Rs 176 crore, up 13.9%.
- EBITDA margin: 15.4%, compared with 16.2% a year earlier.
- Interim dividend: Rs 1 per equity share.
- Record date: October 30, 2026.
- Dividend payment date: November 20, 2026.
