Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vishal Periwal from Antique Stock Broking. Thank you. Over to you, sir.
Yeah. Thanks and warm welcome to all the investors and analysts for the interaction with the management of RailTel Corporation of India Limited and the team in RailTel in today's call is led by Mr. Sanjai Kumarji who is the Chairman and Managing Director, Mr. V. Rama Manohara Raoji who is Director, Finance, Mr. Manoj Tandonji, Director, Projects, Operations & Maintenance. Along with Manoji is Mr. H.C. Batraji who is Special Executive Director, Finance. As usual, we'll have brief from the management on the quarter and then we'll have lines for a Q and A. Thank you. Over to you, Sanjai sir.
Thank you, Vishalji, and a very good afternoon to all of you. It gives me great pleasure to interact with you on the company's performance in the backdrop of Q2 financial results of FY 2026, which were declared by the company on 29th October 2025. The company achieved operating revenue of INR 951 crore in Q2 of FY 2026 as against INR 744 crore in Q1 of FY 2026, registering the QoQ growth of 28%. The telecom segment contributed INR 367 crore and project segment contributed INR 584 crore in company's operating income. As regards the total revenue, the QoQ growth is 27% with INR 966 crore in Q2 FY 2026 as compared to INR 758 crore in Q1 of FY 2026. The profit before tax in Q2 of FY 2026 is INR 105 crore against INR 89 crore in Q1 of FY 2026, registering a QoQ growth of 18%.
The profit after tax in Q2 of FY 2026 is INR 76 crore as against INR 66 crore in Q1 of FY 2026, registering a QoQ growth of 15%. The company achieved total income of INR 1,724 crore in H1 of FY 2026 as compared to INR 1,440 crore during the corresponding period of last year, registering growth of 20%. PAT for the first half of FY 2026 was INR 142 crore as against INR 121 crore during the corresponding period of the last financial year, with a growth of 17%. I am happy to state that the Board of Directors of the company declared an interim dividend of INR 1 per share for FY 2026. Earnings per share in first half of FY 2026 stands at INR 4.43 as against INR 3.78 of first half of FY 2025, registering a year-on-year growth of 17%.
Earnings per share in Q2 of FY 2026 was INR 2.37 as against INR 2.06 of Q1 of FY 2026, registering a QoQ growth of 15%. The total order book of the company as on date is INR 8,251 crore. During current financial year, the company received total orders of INR 3,317 crore up to 30.09.2025, which is higher than total orders received during entire FY 2025 and almost three times the order received during H1 of FY 2025. Hence, the momentum created during Q4 of last year is continuing in the current year. The company is celebrating silver jubilee of its foundation in the current year, and this is true tribute to our celebrations. I thank you very much for your trust and vision for the future of this company. Jain.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. The first question is from the line of Kumar Divyanshu, who is an individual investor. Please go ahead.
Yeah. Hello. Audible?
Yes, please. You are audible.
Yeah. Congratulations for the very good set of numbers. Basically I have one or two questions. First question regarding the order book status. Could you please comment on that till Q2 FY 2026? The second question like order in.
Are you having the order?
Inflow in coming quarters or not. The third is that. Please comment on the data center expansion or CapEx planning if you are having. Thank you.
Your second question, can you please repeat once again?
My second question was regarding the coverage and in the segment of data center. Could you please comment on that, like if there is any progress or the company is planning to enter into the particular segment business? Likewise, is there anything there or is there?
Any planning something from the management onward. Yes, total order book. I already told till end of second quarter. Exactly, I don't remember till the end of second quarter, but today it is INR 8,251 crore. Today it is INR 8,251 crore. As you said, Kavach. Kavach, we are already doing work. Two orders we have already won and they are under execution. There are tenders where we are continuously applying. Whichever tenders are coming, we are of course participating in those tenders. On data center front, one data center, one edge data center is already up in Gurgaon and the other one is under progress in Mumbai. Maybe one or two we may be doing by the end of this year. On other data center progress, we have already started working on developing 10 MW data center.
Initially it will be 5 MW and then we will upgrade it to 10 MW. Work is already started. Civil work is already started in Noida. I hope I have answered your question.
Yeah, yeah. Got it sir. Thank you so much. Thank you.
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Mohit Mishra from ICICI Securities. Please go ahead.
Good afternoon, sir. Thank you for the opportunity. A couple of small questions. Out of the order book of INR 8.251 billion, what % is for railways?
If you ask Railways, railways here would be around, it is about INR 800 crore. Railways, you can say around 10%.
Around 10%. Okay, sir. Sir, could you give me the breakup of telecom services revenue under NND?
Sorry, just correct. Railway total will be around 22%. 22%. Another telecom, if you put together telecom also, that will be around 25%.
Okay sir. Okay. Sir, could you give me the breakup of telecom services revenue and ND ISP and IP for the quarter?
NLD is around INR 153 crore. IFP is INR 111 crore and IP1 is INR 29 crore. Total put together is INR 294 crore. This is core telecom revenue.
Okay, sir. Okay. Also sir, the guidance that you gave in the last quarter call of 25% revenue growth and 11 to 12% margin, would you stick with it or is there any revision to the guidance?
There's no revision. We stick to that. Okay.
Okay. Sir, thank you so much for answering the questions. All the best for the coming quarters. Thank you.
Thank you.
Thank you. The next question comes from the line of Viraj Mithani from Jupiter Financial. Please go ahead.
Yeah. Congratulations for the outstanding number, sir. My question is, can you give me the composition of the order book which you have?
8,250 crore.
I'm sorry to interrupt you, Mr. Viraj, but your voice sounds very.
Yeah.
Can you please speak on your handset?
Yeah. Is it better?
No, it's still a little distant.
I think it is better for me. You can.
Okay s ir.
Yeah. Can you give me the composition of the order book, which you said, you know, INR 8,250 crore would be composed?
I would say around INR 3,700 crore is from various states. Around INR 2,500 crore. 25% rather, so it's around INR 2,020 crore. INR 2,000 crore is from railways. Various PSUs is around close to slightly more than INR 900 crore. Various other government departments is around INR 750 plus crore. Financial sector is around INR 350 crore. Other railway PS is also there. All put together, around another INR 350 crore is how it is distributed.
Sir, how is the revenue distributed from this order book? How is the execution done? Long orders or the short cycle order?
They are mixed orders. They're all mixed orders. A few of them, certainly they're CapEx based, so they will be like taking one or two years. A few of them, maybe another AMC is there, so they will be going four, five years. That is how they are. Exact timelines and all that, there is a slightly complex thing. Roughly, you can say that we should expect around INR 22,000 crores out of this order book getting converted into revenue.
That is, every year the INR 2,000 crore will be converted into revenue, something like that.
I'm talking for first year. It will be graded over next year. Certainly, first two years are more prominent for the current order book as and when a new order comes. Generally, it is 12 to 18 months, 2 years timeline when they are getting executed.
The major order gets executed in the first two years, and then it goes slowly and then gets reused.
Certainly. Yeah, it is happening like that for previous years also. New orders are getting added and old orders are getting converted into revenue.
Yes.
This is general trend anywhere else, I think.
Sir, net margins will be 12%. That what you said last time. Would you maintain in this or maybe improvement further because the always more and more as we're getting.
As I told when I answered last investor's question, we will maintain around 11 to 12 only. Okay.
Do we have any place in this IMEC corridor which the government is planning to?
Think which one?
IMEC corridor which is government is running the big corridor r ight?
I didn't get you.
That's.
Yeah.
Connecting from here to the Gulf States and back.
No, we are not. Not with us.
Thank you, sir. All the best. Enjoy.
Thank you.
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Axay Shah from Toro Wealth Managers. Please go ahead.
Thank you for the opportunity and congratulations for both sides of members. I just want to understand that.
I'm sorry to interrupt you, Axay. Sir, but your voice is echoing. No, sir, it's not distant. We can't hear you. Please speak through handset.
Hello.
Hello.
Yes sir, you're audible.
Yes, sir. Congratulations for good set of numbers. I'm new to the business, so I just want to understand that 11% - 12% margin that we are talking about, it's PAT margin. Another thing, given our strong order book, are we ramping up our execution and can we see more growth ahead?
Number one, it is not PAT margin, it is EBIT margin. It is not PAT, it is EBIT. Right. Okay. Your next question is regarding?
Sir, given our strong order book, are we ramping up our execution and can we see more growth going forward?
We are certainly venturing into new sectors, participating in more tenders. We are even now going abroad for new business opportunities, international business also. We are trying very hard. We are certainly gaining momentum and we are sure that we w ill succeed.
Okay. Sir, what is the reason for you maintaining the decrease in the EBITDA margin? Are these a cost pressure or are we going in different businesses? The margin is different. Can you help me understand that?
We have a mix of two business sectors. One is telecom sector, the other is project business. Project business, I've been consistently maintaining that we will be somewhere around 4%- 5% and depending upon the revenue mix, the overall margin will fall in and around 11%. Telecom business gives certainly much healthier margin, whereas project is always competitive. You have to execute work and all that, so their margins are, even 4 %- 5% is considered a good margin. In project business, we are trying to remain in that window.
Thank you so much for answering my question. All the best for future.
Thank you.
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Mohit Mishra from ICICI Securities. Please go ahead.
Thank you for the follow up. Sir, I missed one question. Could you help me with the CapEx number for the quarter and the estimated CapEx for second half of the year.
If you are talking about CapEx around INR 250 crore, we'll be completing. We have already booked.
Yeah.
62 crore. We have already booked quarter two. We will be maintaining INR 250 crore around numbers.
215 crore for the second half r ight?
INR 250 crore. INR 250 for entire financial year, for whole financial year.
Okay, sir. INR 62 crore in Q2. Y eah?
Yeah.
Okay sir. Thank you so much.
Thank you. The next question comes from the line of Maitri Shah from Sapphire Capital. Please go ahead.
Yeah. Hello. Good afternoon. Am I audible?
Yeah.
Hello. We surpassed our entire FY 2025 order inflow, which is a great feat. How do you see the second half panning out? Do we expect a similar order inflow happening close to around INR 3,000 crore in the second half of FY 2026 as well?
The expectations should always be on the optimistic side. We always expect we get good orders, higher number of orders. There are so many factors. We are participating in tenders, we are winning. Sometimes it happens that we get some very good large value order also. This year in this quarter we have got two such orders. That is the reason. We are continuously increasing our intensity of participating in bid, so certainly we expect that this momentum should continue.
Okay. A follow up to the two large orders that we got.
Could you, sorry to interrupt you, Ms. Maitri please speak a little away from the mic. Your voice is getting—yes, sure.
Is this better?
Yes, it's better. Thank you.
Yeah.
The two large orders that we kind of won in the second quarter, what was the amount for those? If I could get that.
We got one from the Bihar state government for setting up the labs for schools, which is INR 822 crore. That is one big order which we got this year. I think the guest ever another one. I think that was the Kavach order which we got last quarter from East Central Railway, and others are similar. This is really big, INR 822 crore, and we want to create it as a model project, delivery which becomes a model for any government project we are doing.
That is great. Also, on the global plans, as you said that you're looking for opportunities abroad, do we have any tenders in pipeline and could you quantify?
There are a few opportunities. Since those opportunities are not finalized, we can't diverge. Yes, we are working on a couple of good opportunities, though not a much bigger size. To begin with, they are good numbers. These are African countries and Arabian countries.
African, Middle East. Okay. Do we give.
Not many. Caribbean, not Middle East.
Okay.
Okay. It is not Middle East. Okay.
African, Caribbean. The pipeline, do we, can we like give a number on what is the pipeline and what sort of win ratio do we have?
You're talking of overall numbers?
Yes, like the order and what sort of.
Roughly our winning factor is around 20%.
The bidding pipeline.
Bidding pipeline, exactly. I may have to. It keeps going. Every day people are calling. This is not, as a number, every day people are bidding or finding new tenders. I exactly have that number. Anyway, any.
Any ballpark figure you could give on it?
You can just estimate that INR 3,000 crore we won in the last two quarters. We must have bidded for around five times, INR 15,000 crore roughly in two quarters. There is nothing because many tenders would have been bidded even last year also sometimes. It is just a number which I got and give it to you by just averaging. Okay, got it.
With such a big pipeline of orders that we already have won, do we expect FY2027 to be on a much higher growth trajectory? Are we targeting at 30%, 35% growth for FY 2027?
It's too premature to say anything about 2027. Yes, certainly, conservatively we will pursue no less than 20%-25% of growth. See, global scenario, global supply chains, those also uncertain factors might affect things anytime. I'm sure that with this kind of winning spree which we are going, we should be able to maintain at least 20%-25% of growth.
So. Okay, now that is it from my side. Thank you.
Thank you.
Thank you. The next question comes from the line of Nayan Thakker from Investec. Please go ahead.
Hi. Thank you for the opportunity. I had two questions, sir. I have noted that telecom EBIT on a segmental basis has seen an improvement in margins in the current quarter. If you could help us with what exactly can be the sustainable level of margins in the telecom services segment, that is the first question. The second question, sir, I have is if you could just guide us to the broad revenue mix between the two segments for the year between telecom services and project services. Thank you.
Okay, so first I will answer the second question. 39% and 61%, that is the ratio between telecom and project business. Right. Second question about this. You are asking margins in telecom in this quarter. The number being very small, our margin is going to remain in 30%-35% only. This is one off even because numbers are small and quarter is also a small period. The margin is going to remain in 30%-35% overall over a long period. Just to follow up on the.
Telecom services, I guess in quarter one EBIT was 20.5% and in quarter two it was 27.9%. Sorry, 30%, 35%. Are you, are you saying we should.
I'm talking of EBITDA. If you're talking of EBIT, you are right. I'm talking of EBITDA, so the numbers are different. We are talking about. Understood, sir, understood. Got it.
Just to follow up on the revenue share number you mentioned, will we see a further reduction in the telecom revenue share going forward in 2027 and 2028, or can we maintain a broad 40%, 60%? If you could just provide some guidance.
Broadly for some time to come, 40%, 60%, more or less. We have started, as I've been saying, that we are trying to get more telecom business, though competition is very tough and price pressures are very high. We have started getting some successes. Despite project business going at much higher pace, with some more revenue growth coming in from telecom sector, we should maintain 40% to 60% in and around 40%.
Understood? Understood, sir. Sorry sir, if I can just squeeze in one question. If we talk of the segmental results of the telecom services on an EBIT level, if you could just provide some color on that margin please, on a sustainable basis. While you did mention on an EBITDA level, if you could just help me with the same on the EBIT level.
Same. 21%, 22%.
Understood, understood, understood. Okay, thank you very much. All the best for the next remaining quarters.
Thank you.
Thank you. The next question comes from the line of Viraj Mithani from Jupiter Financial. Please go ahead.
Yeah, thank you for the follow up. Sir, this composition of the order book, the 40% is telecom and the rest is project. Is it a correct way to think about?
You are talking about order book. I am talking about revenue. I think your question is about order book. Yeah.
What composition will be project in the telecom and order book?
Order book, you. I think this question I might not be having answer immediately because, yeah, they have both mixed. I might have to really segregate the. Certainly, the project business order book is higher. Telecom new order book would be around 13% - 14% new order books.
Sir, my next question is can you give a color on this data center business, like what sort of revenue will get from this?
I would like to clarify generally. Telecom order book is generally yearly, whereas project is spread over many years, three, four, five years. Actually, it's very difficult to make it out what is the actual impact on yearly revenue. Sorry, just wanted to make it more clear to the investor. Please tell your question.
Business like, how is the revenue plan? What will be the margins for data? What is the future potential for data center business?
Data center business is doing very good. In fact, we have. We had recently, a few months back, signed an MoU with Tata Consultancy Services and we are using their sovereign data center platform also for providing services to government. Soon we will be using their platform also. We are coming up with our own data center in Noida, which is investors. Basically, PPP model work has already started. It will take around maybe another one and a half. Sir, we really have a very good growth opportunity. We are eagerly waiting to basically make a strong foothold in this sector because there's a lot of growth opportunities at the center. You've been reading in newspapers also.
Right, sir. What percentage of the revenue does it form right now, sir, in data center?
Right now it would be INR 150 crore kind of numbers in annual last. Last year it was INR 127 crore out of 3,500. It is not a very big number, but yes, it will grow.
Okay. What percent, like, it will be 30%, 40% growth year to year, like t hat or maybe more.
You can. We must expect 30 to 40%.
Thank you.
Thank you. The next question comes from the line of Shubham Shelar from Antique Stockbroking. Please go ahead.
Hi sir, thanks for the opportunity. Am I audible?
Yes.
Yeah. Only one question. Regarding the exceptional item during the quarter of around INR 16 crore, does it come under ECL provision?
Yes, this is ECL only.
Thank you.
Your voice is not clear anyway. You wanted to say something else?
No, sir. Record.
Okay. Okay.
Thank you. Next up we have Mr. Vishal Periwal from Antique Stockbroking. Please go ahead, Mr. Vishal. No sir, your voice is not audible. Hello.
Can you hear me now? Is this better?
Your voice still sounds a little muffled.
Okay, I think I'll come back. Yeah, I think this will be better, right?
Yes, it's better.
Yeah.
Can I go?
Yeah.
Sorry sir, one is in terms of our order. Yeah, sorry.
Yeah.
In terms of order book, is it fair to say, largely, I mean like you know it's state government, central government and departments? We don't have any major private sector contribution as of now.
You are right, not major private sector. Got it.
In terms of data centers, whatever we have currently, what could be utilization rate right now?
If you ask our data centers, which is very small capacity, we are nearly 60% - 70% already utilized. That is why we are tying up with others and developing new data centers.
Okay. Okay, got it. Got it. Sir, you have also given the breakup of this telecom revenue breakup in the quarterly. In terms of total, it is almost like INR 293 or 294 crore. What we have reported in segmental is a higher number. What could be the difference here?
Actually, it includes ICT revenue also, which includes other than non-telecom, basically not pure telecom. There are two. There are licensed income, NLD, ISP, and IP1. In our telecoms income segment, the data center segment is also included. That is why you see that.
Yeah, okay. Yeah, got it. Got it. Earlier we were booking everything in telecom. Is it frequency?
No. Even now, even now data center is not a separate agreement.
Okay. Okay. It's part of iP1?
No, no. IP1 is separate. We call it ICT revenue.
Okay. Okay, got it. Sir, can you give a revenue breaker for project side also?
Project services project, if you talk railway and non-railway, then INR 134 crore from railways and INR 449 crore from other than railway.
Okay, got it. Maybe one last thing. It could be a repetition only. I think you have answered. In terms of if one has to understand, we are getting pretty good order inflow. If one has to take understanding, like you know, any particular sector, anything that is driving it, can we put it in as some sort of bucket that will help us to keep a gauge and that will be helpful.
Actually, we are working in digitalization initiatives. Most of our SI projects, system integration projects, belong to digitalization initiatives of various departments irrespective of any particular sector, be it health, be it education, be it mining, be it any other. It is not concentrated in one. Recent orders which you see in these two quarters, it is education sector.
Okay, okay. Right, right. Maybe one last thing, though you have mentioned, I mean private sector order book contribution is negligible as of now. It is fair to say whatever orders that we have, they are all on competitive bidding where private, public, all players, including us, we compete. That's fair to say. There's no domination.
So competitive if you say, so roughly around 70%-75% of our orders are competitive. Nomination.
Yeah, got it, got it. Nomination will be largely focused in the railway side?
No, there are other than railways also. It is not necessarily only.
Okay, okay. Sure, sir. I think that's helpful. I'll come back in the queue, sir.
Thank you.
Okay.
Thank you. As there are no further questions with this, we would now conclude the call on behalf of Antique Stock Broking. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.
Thank you.