RailTel Corporation Q4 FY25 Results Shine with Income Soaring
RailTel Corporation Q4 FY25 Results (Image credit X.com)
RailTel’s Q4 FY25 Profit Surges as Revenue Climbs 56%, Lifting Shares
By S. Jha
MUMBAI, India, May 2, 2025 — RailTel Corporation’s shares rose more than 10% on Friday after the company reported strong fourth-quarter results for fiscal year 2025, driven by robust revenue growth and project execution.
The state-owned telecommunications and IT services provider reported revenue of 1,328 crore rupees ($157 million) for the quarter ending March 31, up 56% from 851 crore rupees a year earlier and 70% from 782 crore rupees in the prior quarter. Net profit grew 46% year-over-year to 113 crore rupees, from 77 crore rupees, and 74% from 65 crore rupees in the third quarter.
“RailTel’s performance reflects strong order execution across high-growth sectors,” Tushar Sarkar, a stock market analyst, said in a post on X. He noted the company’s work in telecom, IT services, railway signaling, and projects like optical fiber networks, smart cities, and digital services. RailTel also modernizes Indian Railways’ train control and safety systems and offers services like leased lines, internet bandwidth, and data center management.
Despite the gains, margins slightly contracted, though absolute EBITDA increased, according to CA Ram, another analyst, on X. “Revenue nearly doubled, and profits surged,” he said, adding that an exceptional loss was absorbed without significantly affecting the bottom line.
RailTel, a Navratna public-sector undertaking with a market capitalization of 9,501 crore rupees, operates a vast optic fiber network along railway tracks. Incorporated in 2000, it serves broadband, VPN, and IT services, backed by 72.8% government ownership. Recent orders worth 252.59 crore rupees signal continued growth, said Ashish Choudhary, an analyst, in an X post.
However, Choudhary cautioned that high debtor days (180) and a premium valuation — with a price-to-earnings ratio of 36.7 and price-to-book ratio of 5.6 — pose risks. The stock has declined 27.1% over the past year, and some analysts rate it a “strong sell” due to cash flow concerns.
Disclaimer: This article does not recommend buying or selling shares of any company.
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