Synopsis:
In Q1 FY26, Railtel posted Rs. 743.8 crore revenue (down 43 percent QoQ, up 33 percent YoY) and Rs. 66 crore profit. Project Services led growth, rising 78 percent YoY, while Telecom rose 2 percent.
During Tuesday’s trading session, shares of a “Navratna” PSU and one of the largest neutral telecom infrastructure providers in India are in focus on the stock exchanges on Tuesday, after the company reported financial results for Q1 FY26 with a net profit growth of around 35 percent YoY.
At 10:30 a.m., shares of Railtel Corporation of India Limited were trading in the red at Rs. 378.2 on BSE, down by nearly 0.3 percent, as against its previous closing price of Rs. 379.15, with a market cap of Rs. 12,171.6 crores. The stock has delivered negative returns of around 26 percent in the last one year, and has fallen by about 11 percent in the last one month.
What’s the News
According to the latest regulatory filings on the stock exchanges, Railtel Corporation of India Limited announced the financial results for Q1 FY26 on Monday after market hours.
For Q1 FY26, Railtel Corp reported a revenue from operations of Rs. 743.8 crores, marking around a 43 percent QoQ decline compared to Rs. 1,308.3 crores in Q4 FY25, but a year-on-year increase of about 33 percent from Rs. 558 crores recorded in Q1 FY25.
The company’s net profit for the quarter stood at Rs. 66 crores, reflecting a decline of around 42 percent QoQ compared to Rs. 113.4 crores in Q4 FY25, but a year-on-year rise of about 35 percent from Rs. 48.7 crores recorded in Q1 FY25.
Railtel Corp runs its business through two key business segments. The Telecom Services segment generated revenues of Rs. 334.8 crores in Q1 FY26, accounting for 45 percent of the company’s total topline. In Q1 FY26, this segment recorded a marginal revenue growth of around 2 percent YoY.
Meanwhile, the Project Work Services segment contributed Rs. 409 crore in revenue during the same period, making up the remaining 55 percent of the total revenue. This segment registered a growth of around 78 percent YoY.
In Q1 FY26, the company’s total expenses rose to Rs. 672 crore, up from Rs. 493 crore in the same quarter last year. This marks a significant drop from Rs. 1,189 crore in the previous quarter. Key cost drivers during the period included access and related charges, license fees paid to the Department of Telecommunications (DoT), project execution costs, finance charges, and employee benefit expenses.
RailTel Corporation of India Limited is a “Navratna” PSU and one of the largest neutral telecom infrastructure providers in the country, owning a Pan-India optic fibre network on exclusive Right of Way (ROW) along the Railway track.
The OFC network covers all important towns & cities of the country and several rural areas, covering 70 percent of India’s population. RailTel is at the forefront in providing nationwide Broadband Telecom & Multimedia Network in all parts of the country, in addition to modernisation of Train operations and administration network systems.
Written by Shivani Singh
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