Ladies and gentlemen, good day and welcome to the Q4 FY 2026 earnings conference call of RailTel Corporation of India Limited, hosted by PL Capital. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. 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 PL Capital. Thank you, and over to you, Mr. Periwal.
Yeah, thanks, Mission. We are pleased to welcome the management of RailTel Corporation of India Limited to discuss their quarter four results, and also would convey our thanks to RailTel management as well as participant to attend this call on holiday. Joining us today from the RailTel leadership team is Mr. Sanjai Kumar, who is Chairman and Managing Director, Mr. V. Rama Manohara Rao, Director Finance, Mr. Manoj Tandon, Director Projects, Operational Maintenance, Mr. Yashpal Singh Tomar, Director Network Planning and Marketing, and along with the Tomar sir is Mr. Batraji, who is ED. Thank you, gentlemen, for joining us today. I'll now hand over the call to, Sanjai, sir, for his opening remark. Post that, we'll have Q&A. Yeah. Thank you, and over to you, sir.
A very good morning to all. It gives me immense pleasure to interact with you on the company's performance in the backdrop of Q4 financial results for FY 2026, as well as audited financial results for FY 2025, FY 2026, which were declared by the company on April 30th, 2026. The company achieved operating revenue of INR 1,669 crores in Q4 of FY 2026, as against INR 913 crores in Q3 of FY 2026, registering the QoQ growth of 83%. The telecom segment contributed INR 449 crores, and project segment contributed INR 1,220 crores in company's operating turnover. As regards the total revenue, the QoQ growth is 82% with INR 1,016.
INR 1,680 crores in Q4 of FY 2026 as compared to INR 924 crores in Q through Q3 of FY 2026. The profit before tax in Q4 of FY 2026 is INR 190 crores as against INR 85 crores in Q3 of FY 2026 with QoQ growth of 123%. The profit after tax in Q4 of FY 2026 is INR 142 crores as against INR 62 crores in Q3 of FY 2026, registering a QoQ growth of 127%. The company achieved total income of INR 4,328 crores in FY 2026 against INR 3,551 crores during the corresponding previous year with a growth of 22%.
Profit after tax for FY 2026 is INR 346 crores as against INR 300 crores in the FY 2024-2025 with growth of 17%. Earnings per share for year ending March 31st, 2026 stands at INR 10.79 as against INR 9.34 during previous financial year. Board of Directors have recommended final dividend of INR 1.25 per share in addition to INR 2 per share paid by the company as interim dividend for FY 2025- 2026.
The company's order book as on March 31st, 2026 was INR 11,466 crores compared to INR 8,563 crores as on December 31st, 2025, reflecting 34% growth in Q4. We remain committed to pursuing growth and credit, creating value for our esteemed investors. We are also exploring new opportunities in order to realize our true potential. I thank you for your trust and collective vision for the future of this company. Thank you.
Sir, should we open the floor for the Q&A?
Yeah.
Thank you very much, sir. Ladies and gentlemen, we will now begin the question- and- answer session. Any one who wish to ask a question please star and one on your touchtone phone. If you to withdraw yourself from the question please press star and two. Participants are requested to only use handset while asking for a question. Please wait for a moment while the question queue assemble. Please press star and one to ask a question. The first question is from the line of Sanjesh Jain from ICICI Securities. Please go ahead.
Good morning, sir. Thanks for this opportunity, and congratulations on a very, very strong set of numbers. I think we have exceeded our guidance and the expectation. I've got few questions. Sir, can you just repeat the order book for the year-end March 31st, 2026, please?
This is as on date.
This is as on, as on date. If you want to know March 31st, otherwise April 31st, it is INR 11,400 something.
Because we track quarterly, it will be very helpful if you can give for the year-end.
Okay. I think around INR 700 crores will be minus out of it.
Okay.
This quarter we have received about INR 700+ crore orders, new orders. That will be, you can say, roughly INR 10,600 or so. INR 600, INR 700 or so.
Got it. Got it. Got it. That's helpful. Second question on the telecom business. I think till last quarter we were a little disappointed, this quarter again telecom has come back very strongly. Can you help us explain what has driven such a strong growth in telecom business? It's grown 24% QoQ and 25% YoY.
If we talk of telecom income, actually now we were executing one project for railways, which is video surveillance.
Okay.
Now that project is in commissioning stage, there is requirement for providing connectivities to railways for the basically functioning of those CCTV cameras and all. That is one. Then we have, as I've been telling you earlier also, that we are focusing making strategies how to increase our telecom income, whatever extent we can, though there is lot of pressure. Those results have also started, I think coming out. I think that these two reasons majorly, I see that overall we could perform this year much better. Not much better, slightly better than the previous year. Overall, if I see that.
Got it. This, what we have received for the Video Surveillance, it's a recurring revenue or it's a one-time revenue?
It will be recurring revenue. Certainly, telecom generally is recurring revenue.
Recurring.
Unless it is in IRU form. Yeah.
Now this is a new base, right? We will grow again 10%, 11% hopefully next year on this base. That will be a fair understanding?
See, this you can say, yes. There are other telecom market pressures where the prices are continuously in enterprise business on the south side. Still, I would say that we are committed to perform better this year overall.
Got it. Got it.
We are focusing on IP-1, we are focusing on ISP, we are focusing on NLD, all the three segments.
I thought we were looking big, big time in data center. Will that revenue not help offset the pressure in the enterprise business?
Certainly, that is not telecom income. If you say the telecom income including data center, yes. This year we have done, INR 202 crores from data center business, which is also a good growth, and, this year we wish that we will be doing even better, much better.
This data center revenue is recognized in projects?
No, no. It is right now part of telecom. Actually, I thought you were talking about-
In telecom.
...pure telecom income, which is NLD, ISP and, IP-1.
Okay.
If you put whatever we have segmentation done, overall telecom includes data center. Yes, that data center growth has also contributed to this overall growth.
What was the data center revenue last year, sir?
INR 127.
Oh, it's very sharp jump. This data center three in Noida what we have put that's ramping up.
data center also I've been focusing, I've been emphasizing on this, like the data center is our growth driver in future. That is where we are putting our most of our energy.
This growth has come from where?
These are all-
Railway
... all kind of, yeah, mostly these are hosted applications in our data center. We are providing them data center services. Mostly these are government customers, PSU customers, state government.
Okay.
Central government.
Also railway.
E-office.
Railways.
Various kind of services they are taking. Yes.
Do we provide DC to the railways as well?
Yeah. Our, their Hospital Management Information System is completely hosted with us.
Hosted on us.
Their e-Office applications with us.
Got it. Got it. Sir, can you help us with the revenue breakup between NLD, ILD and IP-1 for this quarter?
Yeah. This is INR 182 crore from NLD, INR 120 crore from ISP, and INR 30 crore from IP-1, making it INR 332 crore total.
INR 332 crore. Got it. Sir, just another bookkeeping question. Can you help us understand how much of our right now the order book is from the railways out of INR 10,000 crore?
It's around 20%-
21%.
It's around 21%.
21%.
21%. Got it. When we say, revenue from the, telecom, we don't include data center in it, correct?
No, no. Presently, it is included. Data center and ICT income also is part of telecom segment, which is being published by us. Telecom includes ICT and data center.
Telecom segment revenue for this quarter was INR 449 crore.
Yes, total. Out of that, pure telecom income was INR 332 crore.
Okay. What was the rest? INR 117 crore?
Yes, that includes data center and few digital services like Aadhaar authentication kind of services which we are providing.
Actually, that piece appears to be growing quite fast, as in data center, Aadhaar authentication and so on.
Yes. That shows the digital growth being taken by the country, basically. We are part of that journey. As this digitization wave is percolating into the every part of our life, certainly, this income is growing. Data center is part of it, data center services is part of it, and then various services connected. Like nowadays, exams are being conducted through biometric.
Correct.
That is part of the digital wave which is happening all across the country.
In Aadhaar authentication, what service exactly are we providing?
For example, I just mentioned about exams. When a candidate reaches at the examination center, there is a chance of impersonation.
Correct.
His biometrics are already captured, his Aadhaar number is already there, and it can be on immediately when he reaches one and a half hours before the exam starts. It is basically confirmed that he's not a impersonated candidate. That is a kind of service, Aadhaar authentication.
We provide it for the exams and, even for the private sector-
They.
...yeah. It is only for the government?
No, it is mostly government.
Okay.
See, recruitment exams generally happening conducted by state governments and central governments, UPSC, NTA, like NEET and JEE, both the exams, biometric authentication happening through us.
Okay. Got it. This, Aadhaar authentication, we don't intend it to reach out to private player. Are there any plan to even go beyond the government entities for this purpose?
No, no, we are open. We are open. Generally they have, I think private if you talk of, so kind of KYC happening by banks, they are doing it.
Even mobile SIM is a big one.
I think they have their own means.
Banks and the mobile SIMs.
I think there we have not been approached by anybody, but if the opportunity comes to us, we have skills.
They are doing it, right?
People are going in person visiting the new bank holders and all.
In 1 case we are giving KYC in bank.
[inaudible].
Standard Chartered.
Standard Chartered. Okay. Director of Project has shared that in one case, Standard Chartered Bank.
KYC.
Started doing KYC with us.
Do we have any big plan for this business? It appears to be a very lucrative opportunity and highly profitable, right?
Yeah, it is margins, yes, because this is small value denominator basically.
Correct.
Because per person is a count. You are right. We are continuously approaching various government agencies because they are the lowest hanging for us. They easily, because we are PSU, they easily have trust, confidence. They require it. Private players, whosoever they are, they have their own means. Yes, our teams have approached, as I told you, Standard Chartered Bank is one of the bank who have started doing with us. Since this government market is already big, we are doing our every bit. That is how it is a good contributor.
Margin in telecom segment coming so strong in this quarter is purely because of operating leverage because the revenue was quite steep.
Yes. See, if I say quarterly, so I see always it on average in an annual financial statement. Yes, there may be slight aberration if you see the margins in telecom. Overall, it has always been there in the range of 35%-40%. It has always been in that range only. There may be slight aberration from previous quarters in this quarter. Overall, if you see in an annual statement, it is almost in the same range. I think it's 39% for this year. 39%, I think.
Got it. Got it.
39 point.
Will this heavy Q4, because a lot of them pay you at the end of the year or you do the billing at the end of the year. Generally, this seasonality will they be there now or, we don't see such seasonality in the telecom revenue? Q4 generally is strong for us, right?
Q4 overall, if we see in project terms, it has been there. Seasonality in telecom is not a common feature, but projects, yes. Telecom generally has to be same in all quarters. This quarter, this time has happened due to this project income, this VSS, video surveillance project. This is a one-off kind of instance.
It will be now henceforth recognized every quarter, right?
Yeah.
Got it. Coming to project, we are scaling quite well in terms of both revenue and order book.
One more fact before you go ahead, one more fact I would like to share. Because we have been providing these video surveillance services, and we were in the stage of commissioning few quarters ahead of this, basically Q2 and Q3 also. Some of the billing would have happened even because once those services are accepted, some services we might bill for the previous quarters also.
Okay.
Once the services are accepted by the customer, previous quarters services are also billed in this quarter. That also will have a delta effect on this.
Oh. How much will it be?
Yeah. Next question. Exact numbers I won't have, but yes, there is.
There is some accrued revenue from the previous quarter.
Yes.
This quarter, right?
Yeah.
Going into-
This trend might continue for few new hours or new quarters also because as and when they are, they have started using these services, but once they are accepted by the customer, then only we can bill.
I got it. Got it. Now we have scaled almost, we are doubling the order book this year, at least at the end of the year, and we have executed a lot more as well. How should we see FY 2027 from the project revenue and order book?
Order book, we are very optimistic, and we expect that this trend will continue this year also because the kind of participation in various tenders and our teams getting tuned to the tendering things now for last three, four years. They are also gaining experience, less number of errors happening in participation in tenders and all. Certainly, I wish and I expect that there will be improvement and this trend at least will continue. That is the thing. If you see the revenue part, I think INR 3,000 crores-INR 3,500 crores of income should get, at least should get converted into revenue this year.
That's quite a strong number we are talking.
From project. Yeah. Mm-hmm. Yeah.
What exactly are the large project we are eyeing next year? Or, if you can give some insight into what are the large project railway and non-railway that we are looking up in FY 2027, large in size.
As I've been telling that we are focusing more on data center side. Data center certainly will be there, but the comparison with data center and projects will be slightly different. Railway tenders, yes, we are focusing on railway tenders also, signaling. As far as signaling, because signaling now we have gained a lot of experience for past two to three years. Kavach, no new tenders are seen at least now, for now from railways.
We have already three orders with us and we have to deliver those during last two to three years. Apart from railways, there is a lot of demand coming from state governments and public sector undertakings, central government organizations for their on-prem data center, their SOC. These kind of activities which are though not directly related to data center services which we are providing, but, basically, building their data centers, I see a lot of traction happening this year. This is where I feel that this year we should get good number of orders.
Okay, sir. Any update on the LTE deployment by the railway and for us an opportunity in terms of.
I don't have any latest update.
There is nothing happening on that side, right?
I won't say anything about it, presently I'm not aware of. As soon as I become aware, I can of course share.[inaudible]
Yes, sir. Let me check. Give me a moment, please. I'm sorry, sir. That was from the participant's line. Sir, we'll, the participant has left the queue. I'll just announce for few more questions, and then we'll take the next participant. I will request Mr. Sanjesh to kindly rejoin the queue. Also, anyone who wishes to ask question may please press star and one on your touchtone phone. Sanjesh is back in queue.
Hello.
Sir, you may please proceed. Yeah.
Thank you. Just wanted to understand last on the data center, that 102 edge data center we were building in, how has been the deployment last year, and how are we seeing the deployment for the next year?
Last year we commissioned two. One is in Delhi, in Gurgaon, and the other one is in Mumbai. These are two small data centers. As data centers, we have actually, Mumbai has been done recently in March only, and Delhi is already operational. This year we are eyeing at least three, Indore, Ujjain, Chandigarh and Visakhapatnam. These three we are looking at at least this year.
I thought we were looking at.
Maybe few more come.
Okay.
Yeah.
Are there any delays in the edge data center? I thought we were looking like three, four last year and material.
Actually, ultimately, it is business which will drive.
Correct.
Right now, though we have been hearing about edge data centers for quite some time, but in a true sense, we have not seen any growth overall, pan-India basis, all operators when I see. I think this momentum will take maybe one or two more years when the demand for edge data centers will really get converted into the proliferation of these edge data centers in Tier Two, Tier Three cities.
Even now, what we have seen that first edge, two edge data centers are not in Tier Two, Tier Thre towns. Now this phase, this year, I think we will be going to that stage. Mumbai and Delhi, they are not Tier Two, Tier Three. As in true sense, I wouldn't say they are edge data center, but they are a smaller one, and they will serve those kind of services which will be of smaller scale. We can say that these are edge data centers. I think that growth is not happening in general also.
Okay.
In India.
My last question on the CapEx that we are planning for the next year.
It'll be around INR 300 crores.
And, and-
Our budgeting, we have made planned CapEx, yes.
Okay. INR 300 crores. What will be the main area of the CapEx for the next year?
Mostly it is data center and, partly telecom and some other smaller power and all that.
Got it. Got it, sir. Very helpful and, again, congratulations for a very strong set of number and best of luck for the coming quarters.
Thank you. Thank you very much. I think you must have covered most of the questions related to investors' queries in their mind. Thank you very much for this diversity of questions also.
Thank you, sir. We'll take the next question from the line of Manish Ostwal from Nirmal Bang. Please go ahead.
Yes, sir. Thank you for the opportunity and very good set of numbers for the year. Sir, as I joined the call, little late, so my question may be repetitive. First question is, sir, of the current financial year of 2026 total revenue, what is the contribution coming from data center and the current order book position and the data center related work, what is the size?
Okay. Your first question is related to data center revenue, right?
Yeah.
Contributing to the overall revenue is INR 202 crores. Total order book is INR 11,400.
INR 466.
INR 46. Sorry. INR 11,466 crores. Out of this data center, I have not really worked out how much data center is there, but we can, I think, let you know through your this thing. Right now, I'm not aware of the exact numbers out of this order book.
Okay. The second, sir, in our project business, I know in the previous instances you guided 5%-6% kind of margin. What is the stable margin trajectory at a budget level you want to operate the project business?
The project business, the margins, we are continuously striving to remain in the 4%-5% bracket.
4%-5% band. All right, sir. Thank you.
Okay. Thank you.
Thank you. Anyone who wishes to ask questions may please press star and one on their touchtone phone. The next question is from the line of Kumar Divyanshu, an Individual Investor. Please go ahead.
Yeah, good morning, sir. Congratulations for the very good set of numbers. I just want to have the attention regarding the order executed to you, because as you have given the information that whatever the orders.
Your voice is not coming. Just a minute. Your voice is not coming loud and clear.
Yeah, hello, sir. Now it is coming?
It's still.
Hello?
Yes.
Yeah, yeah, please.
Yeah. Sir, just I want to know that you have already given the information regarding the order book as of April 30th. Just could you please mention that what order book you have executed till yet out of that?
No, order book means not executed as yet.
No, no, sir. Whatever the order you have executed. Executed, I'm talking about of as by FY 2026 total.
That is the revenue. That all, that gets converted into revenue. Whatever I'm saying, INR 11,466 crore is unexecuted. It's not converted into any revenue. This will be converted during the future course of time.
Okay, what order you have executed this year?
That is the revenue. That numbers I can't tell you because that is the Q1 of this year, so those numbers are not yet declared for Q1. Last year's revenue you have already seen. Last year revenue you know.
Okay. Okay, sir. The second question.
Whenever Q1 results are out, you will get to know the Q1 numbers. Yeah.
Yeah. Sure, sir. The second one is, could you please give the update on the guidelines which you have given earlier? What is the progress till yet or what is your planning?
Our growth guidance will be around 20% for this financial year.
We have met the earlier guidance.
Last year also. We have already met our earlier guidance, guidelines also.
Okay, sir. There is no change in guidelines. Am I right?
Yeah.
Okay.
I would say that since the absolute number of revenue is increasing, growth, which was in the range of 25% in previous years, will certainly now be around 20%. Last year we did 22%. Yeah.
Okay, okay. Sir, any CapEx plan?
We have around Planned CapEx is around INR 300 crore.
Okay. In which vertical, sir? Business vertical.
It will be data center. This will be, most of it will be in data center and our telecom network basically.
Yeah. Yeah, yeah. Just one thing, could you please give your overall your business vertical that in which domain you are working, the domain which are actually contributing the revenue?
There are two broad domains, telecom and project business. Telecom is one which includes data center, the other one is project, where other various IT/ICT projects are being executed by us.
Just could you please mention that I am not able to understand that project side. The telecom I'm able to understand what are the businesses and this. Just on projects side, could you please elaborate a little bit?
I think it will take a lot of time to give you all these details. I'm sure you can go through. It is not a small thing with your questions, I think more of a fundamental nature, so other investors would be waiting.
Okay.
But that's a kind of CCTV projects, IT projects, smart city projects, railway signaling projects, data centers, creation for other organizations, making their data centers. Implementing Hospital Management Information System kind of projects. These are all kind of projects.
Okay, sir. Okay. Got it. Got it. Thanks.
Thank you. Thank you, sir. Anyone who wishes to ask a question may please press star and one on your touchtone phone. We'll take the next question from the line of Vishal Periwal from PL Capital. Please go ahead.
Yes, sir. Thanks, sir, for the opportunity and congratulations on great set of result. I think, though I think, maybe a couple of clarification only. Is it fair to say that data center margin trajectory is a little bit on the higher side vis-a-vis NLD, ISP when we report the numbers or is that what you're seeing in NNR working?
No. Data center margins will not be higher than pure telecom margin.
They won't be. Okay. Okay. Fine. Fine. Sure, and-
Let me correct this. Presently, yes. Let me correct. I have confirmed it from our Director Finance. He's saying yes. Right now, yes. I think I cannot comment upon the future trajectory because we are yet evolving in data center business.
[crosstalk] Okay, sir. Because I think, because the reason is like, you know, we have seen a pretty strong up move in the quarter four margin. Though you did mention like, you know, there is could be prior period one-off. I think one trajectory change that we are seeing in our numbers is like, you know, that data center revenues are increasing and the margins are also seeing a change.
We're just trying to, I mean, like, you know, correlate to that any relevance and how exactly to see the numbers. Yes, I think, maybe I think, earlier we were planning to have, maybe like, you know, if the business segment itself is becoming big data center. Can we have a separate, sort of numbers that will also be helpful to the investors, in general for data centers?
Yeah, we are planning.
Okay. Okay. Sure, sir. Next, I think, in terms of the data center capacity as such, though you did mention like, you know, probably we are adding up Indore, Ujjain, Visakhapatnam. In terms of trajectory, can you mention like, you know, current operational capacity FY 2026 is this megawatt and how exactly in terms of megawatt this number is changing, say by FY 2027 end or maybe 2028? That will also help, I mean, like investors in terms of like MRR growth.
Yeah. Yeah. If we talk of data center, we are working out on a very comprehensive and hybrid kind of strategy in data center segment. It is actually a capital-heavy sector because you require a lot of CapEx to invest in a data center. We have already shared with the investors earlier as well that we have developed partnership models wherein players like who have developed their real estate ready for data centers.
There are partners who are investing in building our data centers, and we have our own data centers. Those all three kind of basically approach we are taking. If we talk of capacity this year, this year, maybe we have added one data center already last year in Mumbai, which is a small though. One smaller one we have also set up at Noida data center site, which is a smaller one, 500 kW only. Roughly we will be having 3 MW this year. We have already have 3 MW. 5 MW capacity should be ready by May next year.
Apart from this, as I told you, that we already have readily available data center space with our partners who have created this real estate passive infrastructure. It depends mostly on the customer, whether they are comfortable in our own data center or in data center real estate property owned by somebody else. We are entering into lease agreements with these real estate owners. That is also happening so that our customers are more comfortable. That is all we are trying to do, and we are working really hard to focus on data center segment.
Sure, sir. Sure, sir. Though you didn't mention on our guidance, and historically, I think we have seen, you, I mean, like, you know, surprise on a positive side in terms of actual delivery. I think, one thing in terms of segmental breakup in terms of guidance is one look. Project side, you are mentioning like, you know, we could be doing almost like INR 3,500 odd crores, revenue. Telecom side, I think we have done pretty strong set of revenues within quarter four. Trajectory it could be there. At least in the base quarter we don't have. Number-wise, it could be there in FY 2027. Will that be fair to understand, in terms of the numbers?
I think more or less you are correct.
Okay. Okay. Sure, sir. I think, this is a bit, from my side, and I'll come back in the queue, sir.
Thank you.
Thank you. Anyone who wishes to ask a question please press star and one on the touchtone phone. Ladies and gentlemen, as there are no further questions from the participants, we now conclude the call. On behalf of PL Capital, thank you for joining us, and you may now disconnect your lines. Thank you.