RAILTEL - RailTel Corporation of India Limited Share Price

In the analyst call held on July 29, 2025, RailTel's management provided a positive outlook for the fiscal year 2025-26, anticipating a revenue growth of approximately 25%. The company reported a strong start to the year, achieving operating revenue of INR 744 crores in Q1 of FY'26, up 33% from INR 558 crores in the same period last year. Total revenue rose 31% to INR 758 crores compared to INR 578 crores year-over-year. The profit before tax (PBT) increased by 34% to INR 89 crores, while profit after tax (PAT) grew by 36% to INR 66 crores.

Management highlighted an order booking of INR 721 crores in Q1, significantly up from INR 218 crores in Q1 of FY 2024-25, leading to a robust order book of INR 7,197 crores, which includes nearly INR 500 crores attributed to the Kavach projects. A notable achievement was the nil comments received from the Comptroller and Auditor General (CAG) regarding the financial results of FY 2024-25.

For the telecom sector, management noted that while growth will remain stunted, it acts as a catalyst for project business income. They indicated a continued preference for high double-digit growth in project revenues, particularly from railway tenders and state government projects, including Smart City initiatives. Additionally, management sees potential in expanding international business, although related ventures will take time to develop.

Execution timelines for the Kavach orders have been estimated to extend into 2026-27, with fieldwork already initiated. The company's overall margin guidance ranges between 11% to 12% for the year. Capex for FY'26 is projected at INR 350 crores, primarily directed towards data centers and telecom projects.

Here are the major questions and their respective answers from the Q&A section of the earnings conference call:

1. Question: "How exactly you are seeing things for the full year? Any color that can you provide, sir?"
   Answer: For the overall year, I would forecast around 25% growth in revenue. Given that our previous numbers are growing, this outlook reflects the anticipated growth trajectory.

2. Question: "Any particular sector which is driving our order inflow? Any green shoots or emerging sectors?"
   Answer: We are seeing momentum in railway projects, specifically Kavach orders and tunnel communication projects. We're also looking into state government projects and international business prospects moving forward.

3. Question: "What are the timelines for execution of the Kavach orders?"
   Answer: The execution timelines for the Kavach projects are expected to stretch until mid-2027, with a significant part of the work to be completed over 18 to 24 months from now.

4. Question: "Can you give the breakup of NLD, ISP, and IP revenue for the quarter?"
   Answer: Sure, our NLD revenue was INR151 crores, ISP was INR108 crores (INR84 crores from RailWire, INR24 crores from IP), and data center-related business contributed about INR51 crores.

5. Question: "What will be the share of Kavach in the INR7,200 crore order book?"
   Answer: The share of Kavach in our order book is close to INR500 crores, but I'll need to confirm the exact figure.

6. Question: "Can you share guidance for the year in terms of revenue growth and margins?"
   Answer: We are guiding for an overall revenue growth of about 25%, and we expect margins to remain in the 11% to 12% range for the year.

7. Question: "Do we have exclusive tie-ups or would you consider partnerships with other OEMs for the Kavach project?"
   Answer: For the supply of the Kavach project, Quadrant is our exclusive OEM partner. Execution can involve different partners, but for supplies, Quadrant will be our primary collaborator.

These answers encapsulate the important aspects of RailTel's performance and outlook as discussed during the Q&A session.