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RailTel shares in focus after Q1 profit jumps 36% YoY to Rs 66 crore

RailTel shares in focus after Q1 profit jumps 36% YoY to Rs 66 crore

Time of India5 days ago
Shares of
RailTel Corporation of India
will be in focus on Tuesday after the state-run
telecom and infrastructure services
provider reported a 36% year-on-year (YoY) rise in its consolidated
net profit
to Rs 66 crore for the June quarter, up from Rs 49 crore in the same period last year.
Revenue from operations grew 33% YoY to Rs 744 crore, compared to Rs 558 crore in Q1 FY25. The profit after tax (PAT) is attributable to the company's shareholders.
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However, on a sequential basis, RailTel's performance declined sharply. PAT fell 42% from Rs 113 crore in the March quarter (Q4 FY25), while revenue dropped 43% from Rs 1,308 crore.
The earnings were released after market hours. In Monday's trade,
RailTel shares
closed 4.15% lower at Rs 378, down Rs 16.35.
The company earned Rs 14 crore in other income compared to Rs 19 crore in the corresponding quarter of the last financial year and Rs 20 crore in Q4FY24.
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Segment revenue
The telecom services revenue stood at Rs 335 crore in Q1 FY26, compared to Rs 328 crore in Q1 FY25 and Rs 359 crore in Q4 FY25.
The project work services revenue stood at Rs 409 crore in Q1FY26 versus Rs 230 crore in Q1FY25 and Rs 950 crore in Q4FY25.
The total expenses for
RailTel
stood at Rs 672 crore in Q1FY26 versus Rs 493 crore in the year-ago period. In the previous quarter, the state-run company reported expenses of Rs 1,189 crore. Among the major heads were 'Access and other charges', license fee to DoT, project expenses, finance cost and expenses made on employee benefits.
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RailTel shares target price
According to Trendlyne, the average target price for RailTel is Rs 270, indicating a potential downside of around 29% from current levels. Among the analysts tracking the stock, the consensus rating is 'Strong Sell'.
Despite the recent correction, RailTel shares have gained over 23% in the last three months and delivered an impressive 140% return over the past two years. The company currently has a market capitalisation of around Rs 12,168 crore.
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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